Automation is an area in which payroll software really shines. It’s by automating much of the payroll process that payroll software can really help companies save both time and money. Automation helps to ensure accuracy and that payroll is completed on time. This saves companies money by helping them to avoid costly errors that take time to fix. From direct deposit to reports, payroll software can automate many payroll tasks.
Payroll software can automatically pay employees via direct deposit on a set schedule. With this automation tool, payroll can always be run accurately and on time. Using this feature will help keep employees happy and payroll staff from having to correct payroll errors. While direct deposit is the most common method of payment to an employee, some may have other preferences. Payroll software should also be able to automatically generate a payment to an employee in their preferred method of payment, not just direct deposit.
Time Tracking and Attendance
Payroll software can automatically take data from a time tracking system and use it to calculate how much an employee is owed. Some payroll systems may include time tracking and attendance features within the same software platform. Others may be able to sync to time tracking software that you may already have installed. This seamless exchange of data helps to ensure accuracy with employee payroll. Payroll can be a thankless task. When it is done correctly, no one notices but when there’s an error, everyone knows about it and it can be time-consuming and costly to fix. The automatic time tracking synced to payroll can help to reduce the risk of such errors.
Calculating and Filing Taxes
Withholding taxes from employee paychecks is a vital part of running payroll. A payroll software system can automatically calculate how much to withhold from each employee’s paycheck and take that amount out before the check is sent on to direct deposit. Payroll software should also be able to automatically file taxes. It can also stay on top of changes to tax codes that may occur.
Overtime and Bonus Calculations
If employees have worked overtime, typically they are paid at a higher rate than their normal hours. Payroll software can automatically calculate how much more an employee is owed for those additional hours worked on top of their based pay. Payroll software can also automatically factor in other pay considerations such as bonuses and raises to calculate employee payroll.
Payroll software automatically keeps and generates records of all actions performed. These records can also be used to generate useful insights for the company. These insights can later help companies to make budgeting decisions. Seeing records generated by the payroll software can also help companies to plan financially for the future. These records and reports don’t just benefit the company. Employees can also see records of their past paychecks, including tax withholdings, bonuses, raises, overtime pay, and more. This can help them to plan financially as well.