No matter how small or big a business is, the team behind it keeps working effortlessly to get the work done. As the business expands, the recruitment in the departments increases hence making a bigger team of talented people working together. In the mid of handling the departments, individually or in a group, the HR works hard every second for the smooth communication among the hierarchy. More employees mean more work when it comes to salaries. Hence, to help these issues out, automating the payroll system has proven to be a great help. Have you faced this problem where a basic human error has caused big issues during the payrolls and the whole flow has been collapsed?
Why opt for an automated payroll system?
Stats show that businesses have opted for automated payroll systems which has resulted in 80% reduction in the payroll costs, overall. This includes a significant amount of human errors like mistakes in invoices, cheques, and etcetera that are issued to the employee.
Another study shows that almost 90% of the companies have now moved to an automated payroll systems with direct salary transfers, paperless payrolls, and new options of self-services. It also reduced the workload of HR as self-service allows employees to add personal information in the tools.
Benefits of Automating a Payroll System
There are tons of benefits of an automated payroll system and here are some of them
1- Payment Calculation
The automated payroll system basically uses payroll tools that require manual input to compute all the wages by calculating gross to net earnings of the employees. Hence, the accuracy of the results completely depends on the accuracy of manual input. So, in case, a terminated employee is due some severance payment and the payroll employee forgets to make his entry, the tool won’t update any payment. Such software and tools work best as long as the entries are entered correctly. So, the better option is to go for full automation tools like peoplesonic. Such software performs all the types of payments including hourly, weekly, overtime, double-time, commissions, bonuses, salaries, raises and etc. So basically, the automated payroll system does automated payment calculation and eliminates the manual paycheck writing and does direct transfers.
As it’s been already mentioned that payroll automation helps to reduce the overall time that is consumed in the manual payroll system processing that employee information, salaries, taxes, and etc. However, there are additional efficiencies presented by payroll tools as well. For example, these tools can be integrated into other systems and can help to track employees time, performance, reports, development, and other HR systems. This efficiency can be seen in the end when there is no manual work left.
3- Automated salary slips to employees
These tools have also diminished the manual work of generating salary slips and sending it to each employee according to the corporate SOP. Some businesses send salary slips every month and some don’t. They only generate if an employee asks for it because of some reason like for opening a bank account and etc. So, this is a plus point of an automated payroll tool that it generates salary slips after the transfer of salaries and individually emails it to each employee every month.
The more a tool can help us, there is always a fear of data security. But you don’t have to worry as the automated payroll system will have more of a robust information security system that can easily prevent the leakage of sensitive informative data of the organization. The system’s dashboard can easily help the organization track the changes made in the data by which individual and when.
These tools and software can also help small businesses because they can be run without hiring multiple individuals. Also, there is no expert-level needed to run these tools. Keeping in mind the current scenario of quarantine, software like these are a blessing in disguise for you to manage a huge chunk of responsibility without creating any hassle.