Payroll Software – Why Businesses Should Shift It Online?
29 Jun 2020
There are multiple reasons why businesses are making the switch to cloud technology for their HR and payroll needs. From cost-effectiveness and accuracy in terms of compliance to a reduced need for support, online payroll software brings about a slew of benefits as opposed to an on-premise payroll software or having it outsourced to a third-party vendor.
Here are some common payroll problems that staff may encounter and how online payroll software can do to address them.
Accurate payroll reports and real time data
Payroll calculation errors often stem from manual processes, the most common of which is manual data entry. This could result in inaccurate hours clocked, missing time cards and failure to accurately track employees’ working hours. Theses inaccuracies could give rise to inaccurate payment of salaries and tax deductions. Such errors may, in turn, result in hefty fines due to non-compliance.
With an online payroll software, businesses are able to view employee data all the time and in real-time. It also reduces the effort of having to enter information manually, minimising potential human entry errors. Real-time and accurate data provides the convenience of being able to download customized payroll reports for quick decision-making.
Go paperless with online payroll software
Most HR departments are cluttered with stacks of papers, forms and bulky files cabinets. With an online payroll software, it is possible to achieve a paperless work environment, which in turn reduces a business’ carbon footprint. At the same time, it allows HR to provide e-payslips to employees instead of having to print out and distribute physical copies of payslips. E-payslips provides employees with the convenience of accessing their pay data via any digital tools, such as through their mobile phones or laptops. Additionally, problems such as missing forms can be minimized or even completely eliminated as important payroll or employee data would have been stored on the cloud-based software.
Payroll deadlines & compliance
Payroll professionals are constantly required to meet certain deadlines, the most important being monthly payday and tax filing deadlines. Late salary disbursements to employees can have a negative impact on employees’ morale and productivity. Similarly, inaccurate and late tax filing can result in hefty fines for businesses. An online payroll software automatically updates any changes in legislations and keep track on important deadlines. Most payroll software would also have alerts whenever there are any changes to the statutory regulations so that users are aware. This helps businesses to stay abreast of key changes and act on them within stipulated deadlines.
Is your payroll process scalable?
With on-premise payroll software, the business is essentially stuck with it from the day it was bought. As the business grows, the software might not be able to grow along as it lacks the required features. At the same time, it might be difficult to integrate it with new software that the business might have purchased, such as accounting or time management software. This then makes business processes extremely costly and cumbersome given that there are standalone software handling various business functions.
On the other hand, online payroll software are ideal particularly for growing businesses as they are scalable. The benefit of being cloud-based allows users to upgrade, add and customise features depending on business’ needs. Concurrently, online payroll software allows businesses to integrate payroll together with other functions as accounting, expenses claims or benefits management, enhancing data accuracy and payroll calculations.
Data security is important for payroll
Managing payroll and keeping employee information safe is a huge responsibility. Data breaches and fraud can have an adverse impact on payroll operations. On-premise payroll solutions are highly prone to data breaches and system crashes given the massive amount of data stored and the multiple user accesses. This is where cloud-based software excel. The development of cloud technology made it possible to develop strict cybersecurity tools to protect critical employee and payroll data.
There are numerous online payroll software providers in the market. Before signing, it is crucial to be familiar with the services that each provider offers and whether it is aligning with business needs. A good rule of thumb is to go with a payroll software provider that can take care of current and future HR and payroll needs.