October 18, 2018 / jnebria
Payroll is significant for all businesses. Employees must be paid accurately and on time as this is a moral and legal obligation to employers. Moreover, it also prevents poor performance, employee turnover, and low morale among employees. Thus, Payroll software is a great system that can be used to pay employees with better efficiency, faster speed, and a higher level of confidence.
Benefits for small businesses
There are many benefits when it comes to small businesses using Payroll software versus manual processing. These advantages involve a faster system of working out calculations and deductions involving payroll. Payslips are generated accurately. Holiday pay, expenses, and bonuses are calculated with less effort. Employees can immediately ask forms for printing. Tasks are automated such as generating year-end reports. Payroll software also boosts compliance as well as an assistant the HR in dealing with complex tax laws that change almost annually. Data is stored in an accessible manner such as annual reports and payslips.
How does Payroll Software work
Required employer physical presence. Payroll software helps businesses in automating payroll calculations. However, it still requires physical help from an individual. Employers or HR people need to print and provide the checks for their employees. Despite the software automating forms regarding employment tax, employers need to affix their signature and send these to employees.
Encoding employee information. Employers still need to encode all information about its employees. A certain scenario would be the health insurance of employees. Employers are required input of the information required by the insurance provider. This will allow the software to withhold premiums from each check as well as write checks to the insurance companies on or before the due date.
Easy calculation. Payroll software saves time. With the time saved, employees can channel their time to other responsibilities required by the company. Moreover, Payroll software allows simple calculation of complex taxation. Payroll software is updated when it comes to the constantly changing regulations on tax. CEOs do not have to be updated with the tax laws as the software does the automated calculation of the required taxes to be paid.
Web-based services. One feature that makes Payroll software stand out is that it does not necessarily require physical software. All the data can be cloud-based or web-based. With this upgrading, the process of payroll calculations is made easier. Payroll software permits payroll processing from any computer that is connected to the web. Some Payroll software allows E-pay of tax forms as required by both the state and federal governments. It allows managing payroll duties even when the key officer is not physically present at the office. Moreover, Payroll software sends emails that remind the key officer regarding tax dues when these deadlines are approaching.
Option to add service component. High-end Payroll software provides an option to add a service section. There are instances when the key HR officer does not have the confidence of computers filling out tax forms. Some software allows the hiring of real people to file taxes for an additional fee. This gets better as there is a guarantee that their filings are IRS-free from possible fines or penalties.
Cost-effectiveness. Payroll software is very cost effective. Companies that use web-based software can pay a minimum amount of $10 per month. For companies that want to include a full-service tax preparation part, employers can pay a minimum of $80 per month for a business with ten employees who are paid bi-monthly.