The world has become digital, and it’s more apparent than ever. From concert tickets to fast food orders, you can now pay almost every transaction through your phone. It’s safe to say that digitalization has reached several different aspects of society.
Online payroll systems that companies are choosing over traditional payroll processing is further proof of how digital the world has become. If you’re a business owner who’s looking for a new, innovative way to accelerate the growth and success of your company, a business online payroll software may be the answer.
While it’s true there are still businesses that conduct payroll processing manually through their in-house, fully-fledged payroll departments, that doesn’t take away from the fact that switching to online payroll brings many benefits. The number one advantage of using online payroll is the possibility of minimizing mistakes.
Here are some others:
1. Easy Access
The good thing about using online payroll is that you can process the payments of your employees anytime and anywhere, as long as you have a browser and internet access. It makes it possible to get away from overlapping data entry.
Whether you’re going to operate through the web or real-time, you’ll enjoy ease and cost-effectiveness.
2. Affordability
Translate into dollars the number of hours that HR professionals or the accounting department of your company spend to manage tax filings, as well as prepare to run payroll, and you’ll know that online payroll is a more affordable option. Also, you can’t take away the possibility that whoever manages your payroll might waste too much time on it, thus multiplying expenses further.
A custom software solution, like online payroll, can automate these things, allowing you and your team to save time on administrative tasks if you make the switch.
3. Direct Deposit
One way to increase satisfaction among your employees is to deposit their salaries to their bank accounts directly. It gives them almost immediate and direct access to the funds without having to wait for several days, especially since most people already own ATM cards linked to their checking or savings accounts.
Since online payroll allows for direct deposit, it’s also a way of helping your employees save a little bit of money from their gasoline consumption since there’s no need for them to drive to their respective banks to deposit checks.
Also, online payroll indirectly impacts the environment positively. As already mentioned above, employees won’t have to drive cars to go to their banks anymore. So, they’re not only going to reduce gasoline consumption but also carbon emissions.
4. Little to No Risk of Human-Error
Since employee data gets entered one time only, online payroll systems will always offer reliable information while significantly decreasing data-entry errors. It also saves your company the hassle of having to enter information every pay period.
That said, you can expect little to no mistakes when processing payments for your employees’ hard work.
5. Retirement Account Reporting
Do online payroll solutions have a feature for retirement account reporting?
The answer is yes. Some online payroll software gives you the option to create accounts for 401(k) and other forms of retirement investments. This feature allows for complete online access, giving your employees the chance to check their accounts, access essential information and make investment elections without having to wait for mail containing paper statements.
6. Efficiency
In the past, it takes hours to complete an entire payroll processing, even for small businesses. Thanks to online payroll systems, you can now complete it within minutes.
You can keep track of PTO (paid time off), as well as calculate your employees’ bonuses, overtime and pay per hour quickly. This gives you and your team the chance to focus on growing your business because of more free time.
7. Meeting Deadlines
You can meet payroll tax payments, direct deposit and other deadlines with the help of online payroll solutions. It’s something that in-house payroll systems lack.
Of course, you know how missed deadlines can be costly. Aside from dissatisfaction from your employees, it also results in fines and penalties from the IRS.
8. Easy Documentation Access
An online payroll solution will make it easier for you and your employees to access a specific report or look for a previous paycheck and go through some of its information.
When there’s a need for you, as well as your managers and supervisors to review payroll information and reports, it’s possible to access everything when all data gets stored online, securely.
Conclusion:
Affordability, easy and secure data access, becoming better at meeting deadlines and saving time are only some of the benefits you’ll get to enjoy when you switch from traditional payroll processing to using online payroll.
Another option is to outsource the payroll processing of your company to a reliable service provider. As long as the online payroll system is in place, you can’t go wrong with it.
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