The increased use of technology in business, has urged many companies to outsource their payroll component to payroll service providers for efficient processing and staying focused on core business. It may become quite complex when payroll processing is outsourced by companies with a large number of employees and many work options such as part-timers, hourly paid workers, temporary staff, full time workers, work from home employees, skilled employees, administrators and managerial level employees.
A major concern for small businesses is to ensure that employees are paid in a timely and accurate way. In this age of technology, when there are digital systems to track almost everything you can think of, from bank transactions to parcels, and patient records to inventory levels, it is indeed a good decision to move to automated online payroll processing.
Online payroll systems are convenient for small enterprises who wish to expand their horizons in the near future without having to worry about system upgrades or maintenance. While manual processing of payrolls would mean more chances of human errors, slow work progress, and more costs to the company, these services are offered with optimum cost-efficiencies if outsourced to reliable service providers.
Let us have a look at the advantages of moving to an online payroll service provider.
Better resource utilization: Switching to online payroll processing helps save a lot of time and effort. It also helps in minimizing the risk of human error in calculation. Manual processing takes a lot of time for whoever is doing it to calculate the number of hours and days that employees put in, special pay for overtime, vacation, sick pay, leaves, and bonuses. Companies using automated payroll systems can channelize their human resource budget effectively on critical activities such as business development and delivering quality work.
Integration: Payroll systems also help to integrate an employee’s personal data with the rest of the company’s financials. Data about all the employees’ annual leave, sick leave, performance records and correspondence if integrated with the company’s financial liabilities and tax filings can save the company the cost of a separate software package for recording additional types of information.
Sharing Information: Online Payroll enables you to share critical information without any efforts. Employees can access the payslips, leave and attendance information from any where any time. Having a transparent payroll system which both employees and employers trust is critical for any organization of any size.
Easy tax payments: This can be said to be one of the major advantage of using an online tax payroll system. These service providers are not just about the reminders and calculation part of a company’s taxation liabilities but also provide signature-ready forms with the required data extracted and filled in.
Simplify other company operations: Automated payroll processing can also help to manage other organizational operations efficiently. Such operations may include:
- global changes to employee data from anywhere
- hassle free electronic fund transfers
- manage employee loans in a periodic manner
- calculate staff costs and budgets online
Cut down the Cost to the Company: If done manually, employee payrolls can incur hidden costs that can be easily avoided by using an efficient and effective system. The time that some employees will spend to manually prepare employee payrolls can be used to help build your business. This will eventually result into increased employee productivity and profits for the company even after accounting for the money spent to automate the process of payroll management.
Reminders for all sorts of Deadlines: Automated payroll processing service providers help to keep track of all the deadlines as an add-on advantage. Investing in one such service means that no tax deadlines are missed and no laws are violated as a result of changing government regulations.
Leverage outside Payroll Expertise: By investing in online payroll service providers, even small businesses can take advantage of expertise to help them keep up with constantly changing regulations, withholding rates, and government forms—an advantage that was previously available only to big players of the market.
Looking at these benefits of moving to online payroll automation providers can be said to be a wise management decision in terms of absolute return on investment to the company in terms of money, time, effort, taxation penalties and employee leave management.