As its name suggests, payroll software assists the human resource department in calculating employees’ wages based on the number of hours they worked. It eliminates manual computation, thus resulting in a more manageable and efficient payroll cycle.
With this system, HR professionals who specifically deal with compensation and benefits can slacken a bit. Such a tool helps them manage the business’s accounting and payroll on a single platform.
Curious how this is made possible? Read on to find out how this payroll solution simplifies the laborious HR tasks.
How This Software Benefits the HR Team
- Direct Deposit Paycheck
Most companies process payroll every two weeks, while others do it weekly, biweekly, semi-monthly, or monthly. While the process varies from company to company, there’s only one goal: send payments to employees on time.
Some companies issue handwritten or printed paychecks to employees instead of depositing funds directly into their bank accounts. However, issuing paper checks is no longer practical due to many reasons.
Paychecks are easy to lose; they can get misplaced, stolen, or even damaged. Encashing paper checks don’t happen in an instant. Employees may also be unable to cash them on holidays and weekends.
With payroll software, manual issuance of payments is taken out of the picture. The system transfers funds from a business bank account to employees’ direct deposit accounts so that they can access funds right away.
In addition, this payment method is also ideal because it saves time for both the employee and employer, reduces paper usage or wastage, and—most importantly—create happy employees.
Also Read:Top 5 Trending IT courses after graduation
- Automated Tax Computations
Tax withholdings are another integral part of payroll processing. Companies must withhold each employee’s share of federal and state income taxes from payroll.
Payroll professionals should fulfil all payroll tax responsibilities. They must report income, withheld amounts, and amounts paid on behalf of employees; forward payments to the appropriate government agencies; and maintain the required federal and state records.
Does the above seem complicated? Yes they are, but only if the calculations are done manually.
Through payroll software, designated HR staff will no longer waste time and energy on doing tax computations by hand again. This program will do all the necessary calculations for them—the automated way.
Most payroll systems have a tax table embedded in the system. This table will automatically update itself according to the latest tax rates. As a result, there will be a lower likelihood of errors that can result in penalties from both the IRS and the state taxation agency.
- Time and Attendance Monitoring
There are two factors to be considered when processing payroll: the number of hours worked and deductions. If payroll is processed manually, the time spent on processing employees’ wages will take longer.
The human resource department should verify the hours worked against the time card data, and determine the deductions such as benefits, taxes, and insurance that need to be taken out of the pay period.
But if payroll software is in place, these crucial steps in payroll processing can happen in a few days or hours. Most payroll system providers have designed this paperless tool to have time and attendance tracking features.
Such features include clocking options, mobile access, and notifications. Employees can clock in and out through various options: time clocks, web browsers, and mobile apps.
Some payroll applications are also equipped with system alerts. These built-in features will let department heads know when an employee arrives late, leaves early, or nears overtime. In this way, the HR team is empowered to collect and analyze data on employees’ working hours conveniently.
- Switch to Payroll Software Today
If business owners spend copious amounts of money on training people and maintaining operations, then they shouldn’t have second thoughts about investing in a payroll system.
Through this tool, the human resource unit can manage payroll information on a single digital platform, have more control of the payroll cycle, and process employees’ wages in a less complicated manner.
Also Read:How To Make Amazing Job Posting Ads?