Negosentro| 8 Reasons You Should Switch to Online Payroll |If you employ people at your business, you need to run payroll. Some businesses outsource this to third parties and others have in-house teams to manage payroll. Increasingly, small businesses are using online payroll. This may be a good choice for your business. These are eight reasons why you should think about switching to an online payroll system.
1) It’s Often More Affordable
In many cases, online payroll is more affordable, especially compared to running all your payroll in-house. There is a lot of complexity in payroll processing. Plus, the process is a little different depending on which state and municipality you are in. It can even vary depending on a diverse array of characteristics about your specific situation. In other words, it takes a lot of time and knowledge to run payroll.
Fortunately, online payroll is very technology-heavy and often automated. Therefore, it can typically offer the same level of processing at a significantly lower cost. For many businesses, especially smaller teams, it is much cheaper to run payroll through an online system than to do it with an in-house team or even a local third party.
2) There’s Less Risk of Errors
Payroll errors are costly and time-consuming. They can also be very frustrating for your team members who may be affected. However, to err is human. The more your payroll is run by people, the greater the risk of making a mistake.
Of course, there is no way to completely remove people from the process. Even if you have a completely online payroll system, someone is entering the numbers and checking that everything looks good. However, online payroll is typically much more automated. So, there is a significantly reduced chance of someone making a mistake on a calculation.
3) It Can Integrate With Other Systems
Online payroll systems can often integrate with other systems. For example, if your building business uses a mobile construction time card app, you could import data directly from your time card to your online payroll in many cases. That means that you’ll save time and cut down on the likelihood of making mistakes. Another way to integrate your payroll is to export data to your accounting software. In other words, the digital solution makes it easier to get all your systems playing nicely together.
4) You’ll Save Time
Using an online payroll system can help you save a significant amount of time. This isn’t just because you won’t need to be running your payroll in-house on company time anymore. You will also save time because it is easy to access. Anyone who needs to enter or approve time or payments can do so easily from a computer.
The time savings for your accounting, payroll and management teams can be substantial. If you run a very small business and all those teams are you, using online payroll could help you reclaim a significant amount of time each month.
5) Payroll Deadlines Are Easier To Manage
Since you will be saving time, you will have an easier time taking on payroll deadlines. This can be a source of stress for a lot of business owners because everything needs to be ready in time for making direct deposits.
Managing the whole payroll pipeline gets easier when you use an online system. Therefore, you can relax a little more and focus on other parts of your business. Don’t stress about meeting deadlines and don’t worry about frustrating your people with late payroll.
6) You’ll Have Easy Access to Documentation
There is a lot of documentation involved in payroll. From pay to taxes to benefits, you need to keep an extensive amount of records. Not only is creating these records easier with online payroll, but it is also easier to access them again later.
This can be very valuable when you need to make fillings for your business. In many cases, you may need that documentation for certain tax credits. You may also need it if there is ever any confusion or dispute about payroll. Avoiding the need to dig up all the documentation again can save time and frustration down the road.
7) Tax Reporting Is Easier
Payroll taxes are complicated. There are numerous federal taxes including income tax withholding, social security, Medicare and more. Plus, you also have to contend with state and local taxes. In other words, there are a lot of filings and a lot of withholding that you need to do to ensure that you are complying with all tax laws.
Fortunately, online payroll takes care of nearly all of this for you automatically. So, all you need to do is approve the filing before it goes out. Plus, most systems will pay estimated taxes for you from direct deposit. In other words, you can just submit your payroll and sit back knowing that your tax reporting is already handled.
8) It Works Simply With Direct Deposit
Online payroll also typically integrates easily with your bank so that you can use direct deposit with minimal effort. This is great for you and your team members. You don’t need to worry about checks bouncing or taking too long to be deposited. Instead, you can just pay your people and have all the transactions taken care of by direct deposit.
Of course, this is an option for in-house payroll or most third-party service providers. However, it is rarely as simple as the options available for online payroll. It is typically as simple as entering the routing and account information for your bank account. Then, when you submit your payroll, the amount will be withdrawn automatically.
Online payroll can be a powerful tool for small and large businesses. Learn more about how it could benefit you so that you can optimize your business operations. This could be the secret to simplifying your financial procedures. With the time and cost savings, you could invest in your business growth.