Payroll Process saves a tremendous amount of time and effort as well as reducing the likelihood of errors. Automating payroll process enables the employer to process its payroll through a computerized system. It makes payroll processing simple and allows work more effectively and efficiently on routine payroll tasks.
Advantages of Payroll System
1) Quick & Easy wage calculations – An automated payroll system quickly performs all types of payments, from basic salary and hourly wages to more complex functions like overtime, double-time, commissions, bonuses, wage deductions, and reimbursements. It additionally eliminates the need for manual paycheck writing. The system automatically generates pay stubs.
2) Accuracy – By using an automated payroll process the accuracy of payroll processing increases and can achieve 100% accuracy in the payroll information
3) Security – To encounter data loss and to safeguard the information proper countermeasures need to be taken. An automated payroll system would have more robust information security features to prevent leakage of sensitive data outside the organization. It allows the organization to easily track what data changes were made by which individual with an audit log and ensures only authorized personnel can access the information
4) Effortless Updating – Automated payroll simplifies the process by allowing changes to be made directly in the system, where they are stored for easy access. The changes include: Adding new employees to the system, update the information such as changes in deductions, Address, or Tax status and adding or changing bank accounts for direct deposits.
5) Assistance in Financial Planning – An automated payroll process allows funds to deposit directly in the payroll account at the same time for each pay period and allows employers to budget more effectively. It also reduces the chance of late paychecks that erode employee’s trust and might lead to penalties. Trips to the bank and any cheque-cashing fees are eliminated. Making use of direct deposits, employees can easily know when their paycheck will be deposited in the account.
6) Record keeping – Employers need to maintain employee tax records for at least four years. If it is done manually it adds the number of paper forms which has to be filled by hand, filed and stored. By using an automated payroll system, it automatically generates back-up and stores employment tax and payroll data, cutting down on time & clutter.
7) Less Usage of Money and Paper – Perhaps one of the best advantages of an automated payroll system is that it reduces the costs of performing various HR functions. Additionally, there is no need to purchase or install costly equipment because it can be easily accessed through the internet.
8) Work Efficiency – Efficiency at work is one of the key reasons many businesses opt for the automated payroll system. The major benefit of using an automated payroll system is that it can accommodate the growth of the business.
If the business is transitioning into digital then, choose the best- automated payroll software which suits the organization needs.