With everything from bank transactions to groceries being handled by digital systems, it’s no wonder that an increasing number of companies are moving their payroll operations to an online format.
Many businesses conduct their payroll processes in-house—in the form of full-fledged payroll departments or small business owners attempting to do it on their own. Here’s why many of these in-house users are considering the switch to online payroll solutions:
1. Online payroll is more affordable.
Do the calculation: figure out how many man-hours you and your staff are devoting to managing your payroll. Translate that into dollars, i.e. salary. It’s easy to see how those expenses can multiply. Whoever is managing your payroll is probably wasting too much time on it. By making the switch from in-house, you and your staff can avoid spending hours on administrative tasks that are automated with an online payroll system.
2. Online payroll minimizes the risk of human error.
According to statistics from the IRS, 4 out of every 10 businesses will face an IRS penalty based on errors with payroll. With fewer opportunities to manually enter inaccurate information, online systems minimize the risks of mistakes. Also, the payroll application automatically does all the mathematical calculations for you.
3. It is significantly more time-efficient.
After your online payroll system has been set up, you will find that you’re able to complete payroll within minutes—not hours and hours. The online format allows you to easily calculate pay based on hours, overtime and bonuses, while effortlessly keeping track of PTO. This frees up your staff to focus on more important things like growing the business.
4. You’ll be better equipped to meet deadlines.
Online payroll systems help ensure that all deadlines for direct deposit, tax payments and other necessities are met on a timely basis. Unfortunately, this level of reliability is often lacking in in-house payroll systems. A missed deadline can be incredibly costly, potentially resulting in your company being targeted by the IRS and being forced to pay costly fines.
5. It provides more access to your staff.
Whether it’s an employee looking for information on a previous paycheck or an executive trying to access a specific report, an online system makes it simple to find important records. Your reports and information can be stored online and securely accessed by other employees who need to review them.
The online approach to payroll processing has many advantages: time savings, meeting deadlines more easily, quick access to data and, of course, cost. With these factors combined, it's clear that online payroll is a great choice for any company.
Online payroll systems provide many more benefits that just the five listed here. Contact us to learn more about how your business can run more efficiently with our HR and payroll solutions.
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