Why Should Small Businesses go for Online Payroll Services? Managing payroll online has many advantages over managing it in-house. Both medium and small companies have already switched to online payroll services, including other HR management tools and are enjoying its benefits. If you are planning to do the same, you must be aware of its benefits, do's, and don'ts. This article tells about its benefits and how to enhance your payroll system.
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Increases Efficiency- There are many tasks associated with manual payroll management such as calculation of attendance, taxes and benefits withholdings, draw up paychecks and working on forms with the IRS. This is a lengthy process and usually, takes several hours. No matter what, it should be completed within the pay period. Online payroll services perform these tasks automatically or sometimes by manual approval, which takes few clicks and can be done soon.
Enhances Labor Management- Since the online payroll system handles the time-taking tasks, employees appointed for this job are freed. Now they can focus on other important tasks - especially the revenue-bearing ones. It enables time and labor management most efficiently. Decreases the Chances of Errors- Manual data entry are prone to human errors. If the account manager makes a mistake, it might cause employee discontent, loss of money for the company and compliance issues. Online payroll systems eliminate these chances to streamline export systems to calculate attendance, withholdings, draw-up checks, and taxes quickly and correctly. Employee Access to Data History- Most of the employees need historical and payroll data. The HR department usually takes the pain of giving them the information. Online payroll services give the access to those data through mobile phones. Now employees can visit the portal and get the information. When managers get access to payroll, they can review the information as well, that creates another check point for error prevention. Prevents Compliance Errors- About 25% of companies are penalized by the IRS every year due to compliance errors. These errors are not done on purpose. Most of them are committed due to changing nature of regulations. Online payroll services are set to update at regular intervals.
As small companies have time and money constraints, they should go for online payroll services. Upon enrolment of these services, the HR and risk management team are sure to get a sigh of relief during the pay period. Thus, online payroll services for small businesses are in great demand. However, as it is not meant for all businesses, it is imperative to consult payroll experts before making the switch.
Original Source: https://storify.com/Stafftrader/why-should-small-businesses-go-for-onlinepayroll/