It’s no secret that manual payroll processing is time-consuming and prone to errors. An automated system streamlines the process and reduces the margin for mistakes that could cost your business expensive fees. Automating your payroll allows human resource and finance teams to focus on high-value activities that will grow your business. Here are some of the ways you can benefit from implementing automation:
Automated Payroll Reporting
Payroll processing is time-consuming and requires a lot of precision and accuracy. Even a single missing decimal or incorrectly typed figure can cost the business money. An automated payroll system eliminates this risk. A good automation tool allows human resource managers to process all types of payroll payments, including salary and hourly wages, overtime, double-time, commissions, bonuses, raises, retroactive pay, wage deductions, and tuition reimbursements. The software also processes employee advances and repayments, maintains record-keeping, and generates payroll reports for government agencies regarding employees’ tax liabilities.
An automated payroll system stores all records digitally, which reduces the need for onsite and offsite storage. It can also provide enhanced security features to prevent data breaches and make it easier to flag suspicious activity. If you’re still using manual methods to manage your business’s payroll, it’s time to upgrade to the best payroll services. List any time-consuming record-keeping processes your company uses, and create an action plan to migrate them to the new system. Then, enjoy all the benefits of a more efficient, less error-prone payroll process!
Automated Time Tracking
There’s no disputing that payroll is a vital and complex process for businesses of all sizes. Employees expect to be paid accurately and promptly, while the finance and HR team must ensure all relevant data is collected and submitted by applicable laws. The good news is that it doesn’t have to be overwhelming; running payroll can be easy with the right tools. Automating time tracking is one of the best ways to simplify payroll processing. When a digital tool can automatically pull timesheet and overtime data from your time and attendance devices, it eliminates manual input. The result is faster and more accurate payroll processing, which can be a big savings for your business.
Similarly, automated systems can be programmed to alert you when there are potential errors within your data. It can help your organization avoid costly penalties and compliance issues and minimize employee impact when corrections are required. Automation can also motivate employees to complete their daily timesheets on time. Choosing a system that can automatically lock timesheets after a predefined period – be it a week or month – can reduce the likelihood of employees forgetting or delaying their completion of this important task.
Payroll errors demoralize employees and can cause the company to face legal action and hefty fines. They are often caused by manual data entry mistakes, a lack of organization in payroll processes, and even a failure by managers to promptly notify the payroll team about termination. Using a biometric system to mark attendance eliminates these risks and allows human minds to focus on more important tasks contributing to the company’s bottom line. Similarly, a ticketing system can streamline communication among the payroll and HR teams, promptly resolving all issues.
A robust automated system should allow managers to create business rules to automate overtime, meal breaks, rounding rules, and other attendance policies. It should also communicate with time and attendance devices, process payroll quickly, take leave balance and entitlements into account, and generate statements for banks to perform salary transfers. It should also help the payroll team save a lot of time with features like approval routings and the ability to send reminders to those who have yet to respond to requests. Moreover, it should offer comprehensive reporting and round-the-clock support to help payroll teams stay on top of their duties. Such a solution can make your payroll and HR department’s life much easier and improve reporting, compliance, transparency, and employee satisfaction.
Payroll is a complex affair with many secondary and auxiliary parts and processes that tend to fall through the cracks. These often include statutory requirements like bonuses, provident funds, employee state insurance and professional tax, which must be fulfilled and statements and reports generated. Identifying such time-consuming record-keeping processes and creating an action plan to migrate them to your automated payroll solution is essential.
Your automated system should also handle the varying types of compensation your employees receive. It can be based on whether they’re hourly or salaried workers, commission-based, or paid through a combination of these factors. The right software should be able to quickly and accurately calculate these different compensation types and prepare required statements and reports for filing with the appropriate authorities. It should also manage the changing tax laws and policies for various jurisdictions nationwide. It will keep your business from being fined for non-compliance and ensure that withholding taxes are correctly calculated for each worker. A well-automated payroll system will protect employee data privacy by encrypting and password-protecting confidential records. It will prevent information from being lost or accidentally shared with someone who shouldn’t have access. It can also help your organization avoid costly lawsuits from employees whose records have been compromised.