Payroll is a complicated process for employers, who must comply with state and federal wage and hours rules and regulations, income tax record keeping, employee information, and salary rates. All of this must be done with accuracy and documentation in order to pay employees what they’ve earned legally and on time. Employees work hard and deserve to receive their pay and benefits in a timely fashion.
When a business has more than a few employees, manual payroll processing becomes a time-consuming burden with a higher chance of errors than an automated system.
Automated payroll processing can save employers valuable time and money, while potentially improving accuracy and recordkeeping capabilities. It benefits employees as much as employers by making it easier and faster to process changes to W4 information, timesheets and schedules. It also makes nearly instant, predictable deposits into bank accounts through automatic deposit, and provides easy access to paycheck information, so employees can see their hours, benefits deductions, retirement savings, and other pay information at a glance.
Most automated payroll processing software and systems make it easy to change W4 information, such as additions to an employee’s number of dependents if he or she gets married and has stepchildren, has a new baby, moves to a new address, or wants to make changes to his or her income tax status.
Some employers may opt to allow employees to make W4 changes themselves without going through a payroll representative. This self-service allows employees to take care of tasks like benefits enrollments and printing Forms W-2. It also gives employees the ability to add or change bank accounts for direct deposit, deposit their pay into a checking account and a savings account, or whatever banking arrangements they want to make with their pay. Automated payroll processing also changes a paper transaction — manually filling out a W4 form and turning it in to payroll — into a more accurate, dated and archived transaction that is accessible at any time online.
An automated payroll process allows the employer to better manage payroll as a budgeted overhead expense that is known and planned for, so the funds go to the payroll account at the same time each pay period. This reduces the chance of late payrolls or a lack of funds and fosters employee trust.
Employees benefit from direct deposit paychecks by not having to depend on a trip to the bank to get access to their pay. The money is in their bank account each pay period on payday, eliminating any “float” time between when they receive a paper check and when they get to the bank to make the actual deposit.
Accessible Paycheck Information
With an automated payroll process, the accuracy and accessibility of payroll information improve to nearly 100 percent. Computer software does the math and automatically creates records of transactions. Payroll staff and employees can see quickly and accurately what was paid, as well as annual accumulations and all categories of deductions. Transcription errors, incorrect math, and missing data are all caught by the system for timely correction. Automated payroll also keeps employee compensation information secure and easily accessible for both employers and employees.
In summary, automated payroll processes are less expensive and time-consuming, more accurate for employers, and allow employees a trusted, accurate, and accessible transaction for their compensation. Automated payroll helps employees with financial planning, gives them quick and easy access to their financial information, eliminates check cashing fees, and fosters a trusting working relationship that helps keep them at your company.