Have you ever felt payroll is draining your time, energy, and resources? Well, that happens! Especially when you are a start-up with little to no budget for payroll processing. But what if I tell you there is a smart solution to manage everything? Yeah, we are referring to automated payroll systems.
Look! Humans invented a calculator, and it’s better at math than humans, right? The same thing goes for payroll systems. While manual payroll can be okay, automated payroll applications are more powerful. Think in terms of saving time, money, and valuable resources.
According to a recent survey, 63% of businesses underestimated payroll processing time. These businesses usually spend 5 hours a month to manage the payroll of employees. Here is the breakdown of 5 hours spent on the payroll process.
- Payroll tax calculation takes 111 minutes.
- Tax filing takes 96 minutes.
- It took 86 minutes to distribute funding.
Furthermore, same research show that a small business spend 21 days per year on payroll. Imagine how much more you can achieve in 21 days if you save that time. So, let’s dive into details and find out ways to save your precious time.
Reduced Calculation Mistakes:
There is nothing more bad than messing up with someone’s pay. As per the 2023 survey of payroll.org, 78% of Americans live paycheck to paycheck. A little delay in paycheck or messing up with numbers can cause big stress. On top of that manual payroll processing is another name for calculation errors.
No doubt manual payroll processing experts exist but most of them charge higher than expected. Additionally, the chances of error remain. Talking in numbers, 48% of employees who were paid late were also paid incorrectly. Cherry on top, 79% of those employees identified the issue themselves. The survey also stated that, 44% of those who were paid late and wrong plan to resign from their jobs.
All this data is screaming for help! There is a need of change from manual payroll processing to automated systems. Machines are better at handling numbers. Moreover, the time it will take a human employee to calculate and distribute salaries can be saved. Hence, efficiency improves and resources are saved with automated payroll systems.
Employee and Contractors Satisfaction
Manual payroll has no way of satisfying customers or providing them with details. Although automated payroll systems come with aid in hand. These applications have designated portals for both employees and contractors. So, employee satisfaction is guaranteed.
Furthermore, your employees won’t bang on your desk for pay slips, information, and queries.
Fast Fact: 30% of businesses mistakenly categorize their employees as independent contractors. It leads to errors in taxes and heavy penalties as well.
In the business world, categorizing employees as contractors is a sin! Well, it can cause you financial penalties. Employees and contractors are two different entities with unrelated needs. Thus, there is a need of automated payroll system to simply perform these tasks. So, choose a payroll automation program with separate contract portals and employee portals.
Consider the E-Work Force payroll automation system that comes with these portals. Both employee and contractor portals are pre-built in our application. Thus, you don’t need any kind of plugin installation or integration.
Direct Deposit, Making Pay Distribution Easy
Well, it is no surprise that companies are already paying through direct deposit. But the catch is that they aren’t utilizing a system to streamline operations. Processing direct deposits one by one is another form of crunching numbers. Agh! This is a daunting task for payroll distributors.
According to the 2022 survey “Getting Paid in America,” 93% of employees get paid via direct deposits. Well, the numbers don’t lie, and the huge percentage shows why you need to pay via automated payroll direct deposit.
So, having a payroll automation system with direct deposit options is bliss. You don’t need to manually process each direct deposit. Just enter all your employee’s details and salaries for the first time, and the rest will be a few clicks. Every month, your payroll system automatically calculates salaries and prepares direct deposits. However, you are still in control of seeing your payroll records and canceling payrolls.
Assistance in Tax Withholding and Filings
Let’s face it, tax withholding and filing is a major stress for businesses. Any missmatched data or late filing can lead to penalties. According to last year’s (2023) statistics , $7 billion was paid to the IRS in tax penalties for payroll errors.
The number of collected penalties is huge, which shows that companies are struggling with tax filing. Thus, an automated payroll system with tax filing options is not just a need but a necessity. Consider the need to withhold the right amount from your employee’s salary and file on time. Choose a system that automatically informs you about last-minute changes in tax laws.
Furthermore, these systems automate a lot of e-filing processes. For instance, take E-Work Force Payroll, which allows you to e-file Form W-2 and Form 1099 with ease. Additionally, the software indicates that necessary information is missing. In short, it’s a full-fledged system that saves you time and money all at once.
Quick Pay Stub Generation
Pay stub generation is another repetitive task that reduces work efficiency. Imagine your admin department taking an extra 8 hours per month to prepare pay stubs. Its a complete working day and 12 working days in a whole year is a big chunk of time. In other words, pay slip generation takes a lot of valuable resources and time.
So, when you can generate them automatically, what’s the point of preparing them manually? Automated payroll systems are real experts who handle these tasks. Furthermore, preparing electronic pay stubs with the help of software will make record-keeping even better.
Think that way. You automatically generate electronic pay stubs. Benefits? There you go:
- Accuracy: Computer-generated pay stubs are accurate, saving you review time.
- Cost Effective: You are distributing electronic pay slips via payroll application. Therefore, you save on the cost of printing and distribution.
- Employee Satisfaction: Having immediate access to paystubs increases employee satisfaction. They can keep records of their pay stubs for further processing.
- Accessibility: With the power of an automated payroll system, employees can access their pay stubs anytime. This is especially useful for remote employees and contractors.
- Scalability: Payroll automated applications have the ability to scale up as the business grows. So, every time the team expands, you don’t have to worry about payroll systems.
Efficient Time Tracking
For most of the business, employees are paid for their time. For instance, some employees are bound to work hours a day for whole month to get their wage. Meanwhile, some employees are paid per hour. The rule here is as much you work per hour, the more you earn. Thus, for administration, tracking each employee and contractor time can be overwhelming.
Therefore, having an automated payroll system that can handle these tasks is a good idea. The business needs to make sure they are paying a fair wage to each employee to retain them. Otherwise, as we already know, the easiest way to lose an employee is to pay them the wrong amount.
-
Streamline Operations
Once you use an automated payroll system for business, you will be amazed at how operations get in line. Literally, payroll automation applications are the best way to streamline payroll tasks. Additionally, with multiple add-ons, things get even better. Suppose you have a system that:
- Tracks check-in and check-out timings.
- Generate automatic pay slips.
- Pay via direct deposit.
- Provide separate portals for contractors and employees.
- We have added a security system.
- Keep records of all data.
- Provide dynamic and custom reports.
Amazing, right? Well, that’s not an imagination anymore but a reality! E-Work Force Payroll provides you with all these features, including a clean UI (user interface) and UX (user experience).
Custom Reporting
Having custom reports in hand is beneficial for businesses. So, with an automated payroll system, you get multiple options to generate dynamic reports. Furthermore, it helps businesses carefully analyze decisions and make future moves accordingly.
Centralized Data Management
Last but not least, an important benefit of an automated payroll system is centralization. Everything related to your employees is centralized in the system. It makes easy retrieval of data. Furthermore, the time wasted on document search is drastically reduced.
In a Nutshell:
Payroll may sound costly at first, but the amount of time it saves is drastic. Furthermore, extra administrative resources cost more than the monthly subscription to payroll software. On top of that, when you reap the benefits of employee portals, time-tracking features, and more efficiency, your business will be boosted to the next level.
So, weigh the benefits of automated payroll systems, compare them with manual payroll systems, and then make the decision. Ultimately, having a payroll automation system will be the best bet.
Moreover, if you are ready to implement payroll software for your business, E-Work Force is the best option to get started. It comes with all the must-have features for business. Additionally, our payroll application is stand-alone software, which makes it more powerful as compared to other available applications.
FAQs:
What are the advantages of a manual payroll system?
Manual payroll systems can be considered advantageous for micro-businesses. These businesses usually have a team of 4 to 5 employees, which are easy to manage manually. Basically, manual payroll systems are based on Excel and spreadsheets. They don’t have security walls but they don’t cost a penny as well. In short, if you are looking for a zero cost payroll solution for your business. then, manual payroll is the best option.
What are the benefits of automated payrolls?
Automated payrolls are beneficial in multiple ways. Here is a quick list of advantages for your business considerations:
- Reduced calculation mistakes
- Direct deposit facilities
- Quick pay stub generation
- Efficient time tracking
- Streamline operations
- Custom reporting
- Centralized data management
Well, that’s not the end! There are numerous other benefits that come with payroll automation software.
What is a manual payroll system?
A manual payroll system is a traditional way to process payrolls. Although, it’s not being used by the majority of businesses, there are still some companies with active manual payrolls. The most attractive feature of these payroll systems is “zero cost.” However, the price you don’t pay in cash costs you time.
What is an automated payroll system?
An automated payroll system is a trending way to automate tasks for businesses. Basically, it’s an application designed to automatically handle repetitive tasks to save you time and money. Additionally, this software is loaded with features such as tax filing, pay slip generation, custom reports, and more.
How can I automate payroll?
Use payroll automation software. Buy a web-based or cloud-based automation system for your business. Enrich it with employee and contractor data and feed payroll information. Additionally, activate direct deposit for your business, and there you have it! An automated system ready to run the payroll with one click.
What is the best software to automate payroll?
Try E-Work Force payroll automation software for your business. It has amazing features to handle your payroll processes. Additionally, the software is easy to understand and comes with 24/7 customer support.
Which companies need payroll automation software?
All businesses with 10 to 10,000 employees need automated payroll software to automate payroll tasks. You can consider:
- Small businesses
- Large corporations
- Non-profit organizations
- Government agencies
In short, businesses that need to pay their employees and contractors regularly need a payroll automation system.
How is AI used in payroll?
AI usage in payroll applications is still in beta versions. It is typically used to detect fraudulent activities and mismatched information. Additionally, AI is playing a crucial role in data entry and validation. Moreover, payroll systems use AI chat bots to satisfy queries of employees in self-service portals.
Is Excel payroll software?
No, Excel is not payroll software but a data management tool. However, most of the micro-businesses use Excel and spreadsheets for payroll management. In fact, it was the most efficient way to manage payrolls before the launch of automated payroll systems.
What is a digital payroll?
Digital payroll is a smart solution that allows companies to directly transfer employee salaries into their mobile wallet accounts. In other words, its the most convenient type of payroll for employees.
