Successful Startup 101 Magazine - Issue 6

  For Employer and Employees Alike, Automated Payroll is a Win-Win

  By Tabitha Jean Naylor

  For businesses that only have a few employees, performing payroll duties manually usually isn’t too much of a hassle. But for businesses that have a half dozen or more employees, manual payroll processing is a task that is not only cumbersome, it can lead to errors that an automated payroll system wouldn’t make. There is a tremendous amount of information to take into account when calculating payroll including salary rates, tax records, government rules and regulations regarding hours and wages, and on and on it goes. There is no really no margin for error in making all of the necessary calculations involved in payroll processing because it involves the livelihood of the people who business owners depend on most – the employees.

  Automated payroll systems make life easier for both employers and employees. Businesses can save time and money and enjoy better peace of mind knowing that their paycheck and benefits distribution needs are being fulfilled with maximum accuracy and efficiency. For employees, the convenience is unprecedented. Paychecks are automatically deposited into the employee’s bank account on the specified pay day which eliminates the need to make time-consuming trips to the bank and waiting for checks to clear. And they still have access to all of the pertinent information about each pay period including the number of hours worked, their benefits breakdown, and other information.

  With an automated payroll system, payroll expenses can be monitored instantly which can be beneficial in graphing company financial data and establishing a forecast. With this information more quickly and efficiently available to employers, decisions can be more easily made regarding hiring needs. Also, salary increases and other adjustments can be made much more quickly in order to make determinations about how payroll is affecting the company’s bottom line.

  And if there is one thing that most employers dread about doing payroll manually, it is calculating and managing tax information. The stress and confusion normally associated with figuring out employee tax data is virtually eradicated when an automated payroll system is implemented. All tax records are kept in a database and are quickly and easily retrieved.

  Payroll is the most essential element of any business and yet it is the least enjoyable for employers to deal with when the work involved has to be done manually. But the stress of doing payroll can now be a thing of the past when businesses choose to make an automated payroll system part of their workplace infrastructure. When it comes to automated payroll systems, there really is no downside.