Keeping organized with payroll automation

The time and effort you put into your business’s financials is enormous, and for good reason. Finances are a hugely complex and integral part of your business and keeping them organized is paramount.

http://www.flickr.com/photos/13620454@N02/As a small business owner, you must be careful to follow compliance regulations and be accurate, all while managing the rest of your business. Thus, automating your payroll software’s processes can easily and efficiently ensure that your financial, payroll, and tax information is accurate and timely.

Efficiency

An automated payroll system performs a variety of tasks. It keeps track of your employees’ hours, wages, commissions, raises, wage deductions, and even tuition reimbursements. With all that information it’s able to automatically generate paychecks in both paper and direct deposit.

  • Automated payroll removes the need for extensive spreadsheets and manually processing data. Since the computer does the math for you, there’s less of a likelihood of payroll mistakes. No employee wants to get an incorrect check, and no employer wants to produce one.
  • Payroll software systems can allow employees to make changes to their schedules, request time off, update their Federal W-4 information, all without paperwork or a time lag.

Accuracy

Accuracy is one of the most important aspects of payroll, and as a small business you may be doing it by yourself. However, integrating your HR software, time and attendance, and payroll into one automated program can help you keep track of important employee statistics that have an impact on their paychecks or on your tax status.

  • The software automatically tracks everyone’s time sheets and generates reports with every pay period. The entire system – hours, rates, and pay – is transparent to all parties, making it easy to address any complaints or discrepancies.
  • With this automation, the risk of human error is greatly reduced. Transcription errors, incorrect math, and missing data is caught by the system before it becomes problematic for your company.

Compliance

Payroll automation not only takes more work off your shoulders, but keeps your business out of trouble by ensuring that your system is compliant with local, state, and federal tax regulations. And, in the case of an audit, all your employee data is readily available in a variety of reports.

  • As an employer, you must take mandatory withholding from your employees’ paychecks, including federal and state income tax, Social Security, and Medicare. Payroll tax errors can cost you fees from the IRS and the state. Payroll software ensures you are compliant with all the laws and regulations that could apply to your business.
  • The Department of Labor and IRS require you to keep employee tax records for three and four years, respectively. Saving that data in your payroll software can keep your employees’ information easily accessible and secure, without wasting physical filing space.

Automating your payroll functions can help your business stay on top of employee data, tax laws, and manual errors. You will spend less time computing hours and correcting pay mistakes – and more time leading your business – if you take advantage of the many benefits of payroll automation.

Megan Webb-Morgan is a web content writer for ResourceNation.com. She writes about small business, focusing on topics such as call center software and small business loans. Find ResourceNation on Facebook.

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