5 Signs You May Need a Better Payroll Solution
5 Signs You May Need a Better Payroll Solution

5 Signs You May Need a Better Payroll Solution

At first glance, it may seem like payroll processing isn’t all that complicated. However, as anyone in payroll can tell you, it can get complex, and fast.

Calculating an employee’s net pay, the amount he can actually cash out at the bank, involves taking his gross pay, minus FICA deductions, federal, state and local income taxes, and state unemployment premiums, as well as any court-mandated childcare payments. Voluntary payroll deductions may include retirement savings, health insurance premiums, life insurance premiums and "flex plan" contributions. Some of these deductions vary according to the size of the employee’s family, and others are deducted before withholding taxes are applied versus afterward. Many laws change annually and redistricting plans affect local tax liabilities.

And that’s just the basics. Do you still think payroll is an uncomplicated task?

If you want to make sure your company’s payroll runs smoothly and efficiently, consider these five signs that you may need a payroll software solution.

1. There are only one or two individuals capable of completing regular payroll duties
Even for small companies, employees should be cross-trained to assist in payroll duties during those inevitable periods in which payroll employees are on vacation, ill or dealing with a personal crisis. For this to be possible, your system needs to be intuitively designed to learn and use. A good system shouldn’t require hours of training to learn how to use it.

2. Your payroll is calculated using an Excel spreadsheet
Excel is a useful and effective database program. There’s no doubt it works. But understanding it can be brutal for the novice. Excel’s functions are grouped into 12 categories, including Database, Financial, Math & Trigonometry, Statistical and Date & Time. Learning Excel to that extent can be intimidating to a beginner. For the expert, it can be time-consuming, especially since the program typically undergoes numerous application changes annually.

3. Changes to employee information can only be accomplished by a particular department and only during normal business hours
When your normal procedure for updating employee data requires tracking down one or two people or filling out a paper form to be deciphered by someone else later, mistakes are bound to happen. This should be a transparent process so that your employees can ensure the data is correct as it is entered.

4. You receive regular employee complaints about paycheck mistakes
Employees are naturally very sensitive to mistakes in their paychecks. Regular mistakes can lead to a loss of employee morale and adoption of the opinion that they—and their pay—are not a priority for the business. The success of your business depends upon the dedication of workers who believe that their work is valued and appreciated by their employer.

5. You've been fined for missing deadlines or for inaccurate reporting
The payroll taxes deducted from employee paychecks have different requirements as to the required forms to accompany the money and how they must be deposited. Failure to comply with any of these regulations can result in late filing fees and penalties on your business. This is a serious situation that could cost your business time, money and legal fees. It's one of the red flags that means this is more than a small problem for your business.

Time for action?
If any of these situations sound familiar, there are solutions to consider. Outsourcing the task to a payroll service like Paycor is a popular option. If you’re ready to explore ways Paycor can help you streamline your processes, gain efficiencies and relieve your staff of burdensome tasks, contact us today.

More to Discover

How to Find the Perfect HR Payroll Systems: Top 10 Things to Look For

How to Find the Perfect HR Payroll Systems: Top 10 Things to Look For

HR teams spend nearly 70% of their time on inefficient administrative tasks, some of which are still paper-based. As a business grows and takes on new employees, HR professionals may find the need to expand their payroll system to something more robust in order to address the needs of all employees. Having an integrated HRIS solution provides more efficiency because information only has to be entered once, and it improves accuracy across all databases. It also helps improve employee engagement by providing learning opportunities and lines of communication. Why Do I Need an HRIS Solution? In short, an HRIS (human resource information system) solution saves you money and time. Also known as human capital management (HCM) or a human...

HR

LJ Ross Case Study

LJ Ross Case Study

Needing a more efficient way to manage hours and track incidents, LJ Ross turned to Paycor. Now, with Perform Time, supervisors are no longer burdened with reviewing time cards and managing attendance policies by hand. Download the case study to learn more.

Webinar: The Proactive Use of Employee Handbooks to Reduce Risk

Webinar: The Proactive Use of Employee Handbooks to Reduce Risk

It is imperative for businesses of all sizes to stay up-to-date with trends, markets, and policy changes. With the proliferation of employment laws and increasing use of social media, it’s extremely easy for oversites to occur if employment policies aren’t reviewed, developed, updated, and enforced. In this webinar, Russell Berger, Chair of Offit Kurman’s Labor & Employment Group, will discuss will discuss the “need-to-knows” of employee handbooks and its contents.

Are You at Risk for Penalties? Take the HR Compliance Audit

Are You at Risk for Penalties? Take the HR Compliance Audit

Take our HR Compliance audit to see where you stand! Paycor’s HR Audit helps determine the effectiveness of your organization’s HR function. This easy assessment is a systematic, objective tool that evaluates your regulatory and policy compliance. (content will load below shortly) Content loading... Please enable javascript!