For some companies, payroll can be an incredibly time-consuming and stressful process especially when done manually. Investing inpayroll software to automatically handle the payroll requirements for a business has a range of benefits for the user. Not only does it cut down on the time and costs of hiring a full-time bookkeeper or team to manage payroll duties, it also provides an easy, manageable system that runs on autopilot when set up to create an accurate and on-time pay system for all employees.
What is payroll software?
Payroll software is a computer program that manages a business' payroll needs through information that has been inputted and stored. It can standardize the way a business handles the calculation and processing of its payroll and provide an easy method of keeping accurate records without relying on a bookkeeper to process the information manually.
It is a cost-effective solution to hiring an outside payroll service to manage a business' payroll requirements and also cuts down the amount of time needed for the processing of payroll.
How does it work?
Payroll software works by storing each employee's information. Most payroll software uses a "fill in the blank" system with entry fields for name, address, and other important information. After the employee screen has been filled out the user can then move on to the payroll section, where salary rates and any necessary company deduction or contributions, can be entered.
The system then works automatically using the built-in mathematical functions to calculate each employee's pay, managing any mandatory taxes and depositing them into the appropriate accounts, which means the software will wire the direct deposit amount into the employee's bank account.
Payroll programs are built to make all necessary calculations based on minimal input from the user, making it easy and effective for any business that installs it.
How is payroll software useful for businesses?
Payroll software is useful for businesses as it eradicates the need for calculations to be made by hand.An effective payroll software can also be used to handle the calculation of necessary federal and state deductions, and many can even manage important tax season forms.
Allowing a computer program to calculate the payroll duties eliminates the risk of errors—which can otherwise happen when the process is done by human hands—and also drastically reduces the amount of time and money spent on administration duties.
Using payroll software can also be valuable when it comes to analyzing staff expenses and budgeting, by making information available and clear in a structured manner, which will enable you to make informed predictions and decisions for your business' expenses.
Payroll software should be a necessity for any business to ensure that its employees are paid accurately and on time. There is a range of various programs on the market to handle payroll duties, some offering more functions than others. It is important to choose payroll software for your company that manages all aspects of what your business needs from a payroll system to get the most out of it with minimal effort and input from the user.
Gary Trainor is the CEO of Infinisource, a human capital management company with headquarters in Coldwater, MI and Charlotte, NC. Mr. Trainor has more than three decades of HCM industry and management experience that includes almost 20 years at ADP as Division President.