Do you want to avoid constantly grappling with payroll mistakes that drain your time, energy, and money? You’re not alone.
Studies suggest that 33% of employers make payroll errors, costing billions annually. And even for organizations that use traditional timecards, the American Payroll Association reports an error rate of 1-8% of total payroll.
And all of this for what? For compromising efficient payroll automation services to save a few dollars? You’ll be surprised that payroll tech can help you save much more. According to a study by the American Payroll Association, automation can reduce payroll processing costs by 80%.
And that’s not it. Embracing payroll automation can help you unlock myriad benefits, from minimizing errors to a more streamlined payroll process and a better employee experience.
Here are the top nine reasons your small business needs a payroll automation solution.
1. Allows effortless tracking of payroll information
Automated solutions centralize and streamline data, enabling efficient tracking and management of payroll information. This minimizes errors and facilitates easy access to data for use across the organization.
2. Enables efficient calculation of employee wages and rates
Calculating employee wages and rates can be complicated and time-consuming, especially when pay structures vary. Payroll tech ensures employees are accurately compensated based on the agreed terms.
3. Aids in seamless processing and payout of direct deposits
Automated systems eliminate manual tasks and administrative burdens tied to traditional clearance methods. As a result, processing and paying out direct deposits is simple and easy.
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4. Ensures precision in tracking timesheets and attendance
Manual tracking of timesheets and attendance is prone to errors, but payroll automation eliminates that risk. These automated systems often have integrated time-tracking tools that ensure accurate recordkeeping of the working hours.
5. Facilitates accurate calculation of sick days, bonuses, and paid time off
The calculation doesn’t end at wages. Managing employee benefits and time-off requests can take up much of your time. Payroll tech allows business owners to calculate sick days, bonuses, raises, and paid time off seamlessly, ensuring precision and accuracy.
6. Eases payroll tax filing
Filing payroll taxes in compliance with regulations is challenging, especially when done manually. Payroll automation streamlines and improves the entire tax process, from filing documents to submitting them. Besides, automated systems enable small business owners to stay up-to-date with tax laws, ensuring compliance with federal and state regulatory requirements.
7. Simplifies regular payroll reporting
Payroll reporting entails generating and maintaining different payroll reports and documents. This could be challenging for small business owners, particularly those using manual systems and processes. Technology streamlines the entire payroll reporting process, ensuring more accurate reporting and timely payment of taxes.
8. Helps in verification of tax documentation
The US Citizenship and Immigration Services reported that errors in Form I-9 are pervasive. Payroll automation helps companies manage the completion of Form I-9. In addition, it assists employees in maintaining accurate records and updating tax forms as needed, reducing the risk of outdated or incomplete information.
9. Ensures compliant recordkeeping
Payroll automation, with its meticulous records, facilitates effective tax planning. It also ensures your business complies with all applicable federal and state regulations, minimizing the risks of audits and penalties.
The final word
Embracing payroll automation can be a strategic move as businesses adapt to the changing global landscapes. It helps deliver a better employee experience and frees up time for high-value tasks — ultimately positioning your company for excellence.
Want to know more about accounting and HR? In addition to HR, benefits, recruiting and payroll through its PeopleOps, Escalon’s Essential Business Services include FinOps (CFO services, taxes, bookkeeping and accounting) and Risk (business insurance). Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
