Want to Improve Payroll Efficiency? Use an Online Payroll System!

Payroll Functions

Payroll is one of the most important and complex HR function for organizations irrespective of their size. If

not processed systematically and correctly, it can also be a company’s biggest challenge.Managing payroll is not only about distributing pay cheques and calculating withholdings monthly. It is much more than this. Payroll administrators need to understand the relevant tax laws and regulations to perform payroll processing seamlessly.An employer’s payroll functions include:

-      Filing quarterly, monthly, half-yearly and annual reports

-      Issuing W-2 forms annually

-      Handling employees’ pension and health plan contributions

-      Withholding employee taxes

-      Managing unemployment and family leave assessments

-      Informing government agencies about new hires

To avoid troubles in managing these complex payroll processes, CFO sare often seen analysing this question - Should we have in-house payroll processing or outsource it to the third party service providers?

Payroll Processing

In-House & Outsource Payroll Processing

In a NSBA taxation survey, 1500 business owners were asked how do they manage their payroll operations. 40% reported outsourcing their payroll functions whereas 60% responded that they internally manage payroll functions.

True! Many organizations choose in-house payroll functions over outsourcing services. In-house payroll operations give instant access to payroll data, full control over financial processes and privacy to confidential payroll procedures. However, effective in-house payroll processing comes with a gamut of challenges. Transactional data errors, incomplete data entries, confusion in complex business rules and inadequate information on tax rules are some of the challenges, to name a few.

These payroll management errors can be eliminated with the help of an automated HR payroll tracking software.

In-House Payroll Management Software

In this competitive era, each organization aims to advance their operations. However, none of these companies would ever want to spend significant money and time for finding a suitable solution to manage the payroll functions. Today’s rapidly growing small and large organizations definitely need a reliable, integrated and easy-to-use cloud payroll software to avoid payroll mistakes and save time.

An online payroll processing software helps payroll administrators to integrate all aspects of payroll processing while reducing mathematical errors and minimizing risks of IRS penalties. The presence of an automated payroll software also saves the cost of an employee dedicated to manage payroll functions.

The cloud-based payroll HR software facilitates payroll administrators with: 

-      Elimination of printed payslips: Payslips can be viewed online or emailed to employees.

-      Minimize payroll related queries:Employees, usually, have too many payroll-related doubts and queries, and they often end up bothering payroll administrator. Online payroll software allows employees to access their payroll details and documents on their own, leaving no payroll queries behind. It frees up ample amount of time for payroll administrators and allow them to complete other important tasks.

-      Minimum impact when salaries change: Salary increase post an evaluation impacts payroll processes. Changing salary manually is a time-consuming task. Online payroll system updates salaries in just few clicks, without taking much time.

-      Low impact when new hires join the organization:If an organization has multiple offices across the country, payroll processes still remain unaffected when a new employee joins in. The payroll processes for the new employee are managed remotely.

-      Automatic updates in the tax tables:The updates in the tax tables are done automatically whenever the need arises or when any new updates are released.

-      Statistical analysis of payroll data: Archive payroll data for statistical analysis in respect of different employee types.

Besides these benefits, a cloud payroll processing software gives full control over the entire payroll process.

Control over payroll data means - instead of sharing confidential information about employee salaries and other benefits to a third-party, one can store and manage end-to-end payroll information in secure cloud storage, without the fear of losing it.It provides anytime access to built-in payroll reports so that the users can analyse all aspects of payroll whenever the need arises.

The best thing about a cloud payroll management system is that, it enables users to make last minute adjustments and still pay salaries on time. And of course, better payroll data control allows organizations to have effective decision making. That’s all that matters!