Payroll is a fact of life in every business. After all, your people need to be paid. Payroll is also one of the more time-consuming tasks facing your business. It’s truly never-ending. You’ll finish one cycle and then immediately start the next. Throw in tax time and the laws you need to know inside out, and you’re setting yourself up for some headaches.
If this sounds like you, you may be wondering what you can do to make your life easier. There’s good news. There are many affordable payroll solutions designed to simplify payroll and save you the headaches.
What’s a Payroll Solution?
If you’re unfamiliar with the term, a payroll solution is a software suite designed to help you manage the payroll process from end to end. In some cases, these suites become more expansive HR or workforce management solutions, which allow you to integrate payroll with other functions such as time management, benefits administration, and scheduling.
The payroll solution is designed to help you manage payroll more efficiently and effectively.
How Do You Handle Payroll?
Many businesses have switched away from doing payroll manually on pen and paper. While that’s a good thing, the next stop for most businesses is either generic accounting software or an Excel spreadsheet. While these are better than the old-school pen and paper methodology, they are not solutions.
Take, for example, the issue of withholding rates. Different employees have different withholding rates. If you have a worker who’s classed as a vendor and not an employee, their withholding rate is zero. An employee has a higher withholding rate, but it also varies based on where you are, how much they make, and so on. Throw in state taxes and you have a fairly intricate situation.
Now imagine you’re using an Excel document to handle all of this information. You have to key in all of the varying withholding rates, then apply them correctly to each employee. If there’s a mistake anywhere, it’s going to be difficult to catch it.
Automation and Accuracy
Payroll solutions move a step beyond “digitizing” and focus on ensuring you get accurate payroll assistance. Automation can certainly help. Many payroll solutions are capable of automating some of the more routine payroll processing tasks. For example, the program can update withholding tables on its own automatically.
You don’t need to go in and manually update withholding tables every time they change. It saves you time and money, and reduces the potential for mistakes. Payroll is not only more accurate but faster to administer too.
Now apply this to almost everything you need to do with payroll. Suddenly, your HR team members are free to focus on the truly important things when it comes to payroll. Payroll solutions can do everything from calculating withholdings and reminding you about deadlines to check in on your compliance.
Aren’t They Expensive?
If you already knew about the advantages of payroll solutions, there may be one thing holding you back from adopting one for your business. If you’ve just learned about these advantages, you may have one thought. Aren’t they expensive?
You might think that these powerful tools will come with a hefty price tag, but it’s often not the case. In fact, most payroll solutions are downright affordable. With the advent of cloud computing, many companies have stopped selling “software” as a product. Instead, they’re selling it as a service, meaning you can purchase a low-priced monthly subscription.
This is often much more affordable and it also gets you access to benefits, such as ongoing support and automatic updates. Payroll can be easier. Just check out some of the many great options for effective payroll solutions.