Jan 10, 2019 1 min
Pros of switching to an online payroll service
1. More efficient and cost-effective
Using online payroll software allows you to complete payroll within minutes—not hours and hours. The online format allows you to easily calculate pay based on hours, overtime and bonuses, while keeping track of PTO. This frees up your staff to focus on more important things, like growing the business.
In addition, according to PricewaterhouseCoopers, companies that outsource payroll spend 18 percent less on average than businesses that keep it in-house. Time is money, and outsourcing payroll processing is a simple way to regain valuable hours.
2. Taxes filed correctly and on time
The IRS penalizes about one out of every three business owners for payroll errors, and statistics from BusinessWeek say they issued $4.5 billion in penalties related to employment taxes last fiscal year. Partnering with a payroll services provider gives you access to tax experts and automated processes for ensuring correct, timely and accurate filing.
3. Compliance best practices
In addition to tax compliance, many payroll companies can also help with employment and labor compliance through HRIS systems and time & attendance solutions. Legal and regulatory compliance only gets more complex as your business grows, so it’s crucial to find a provider who can grow with you and mitigate risk in these areas.
4. Quick access to data and analytics
Having cloud-based payroll software allows for secure, on-the-go access, so you can view and edit employee information when and where you need to. Many software providers also offer analytics dashboards and custom reporting so you can create whatever reports the CEO is asking for, such as a year-to-date or labor distribution report, in a matter of clicks.
5. Employee self-service
The beauty of the cloud is secure online access, enabling employees to have access to what matters to them—such as pay stubs, time off requests and personal information. Some companies provide free mobile apps that give employees access to this information straight from their mobile device.
6. Easier for the staff
A user-friendly online payroll software will be simpler for newer staff members to learn and use compared to a cumbersome in-house process. With a workforce that changes jobs every few years, ease-of-use significantly shortens the learning curve for new administrators.