But wait, do some of them also dread that there might be an error in calculation like the last month, which would mean the employee having to go through a series of daunting processes to get it right? As a small business you can only hope and pray that this does not happen since the scope of error in manual processing of payroll is scarily high.
The result? Frustrated employees with low morale.
Small businesses are everywhere and the competition is higher than ever. One of the ways to organizational success is to be able to hire and most importantly, retain the most talented employees. If this is to be achieved, every small detail to employee satisfaction needs to be paid attention to.
Investing in the right payroll software can help organisations achieve this to quite an extent. The way SME’s handle their human resources is not very productive as people are always hired to do the job. Very little or no attention is paid to the potential of human error and its negative effects on employees and the organization as a whole.
This is why a comprehensive HR and payroll software is a best bet as an SME as it comes with a host of advantages that ensure efficiency, timeliness, accuracy, precision and cost effectiveness. Payroll gets automated as well as seamlessly integrated with attendance and time management, allowing HR to focus on core business issue and not always be stuck with administrative work.
Why SME’s desperately need a payroll software
1. Efficient usage of time
Small businesses spend way too much time doing payroll every month. This is also accompanied with the hustle that comes with endless hours, days and months spent on year end tax preparations. Using an HR and payroll software automates all these processes, and also eliminates the probability of error in calculations. Countless number of hours gets saved, which can let people in HR as well as Finance focus on other critical tasks which require their immediate attention. The vicious circle of commitment to payroll ends as it gets replaced by a few clicks.
2. No more errors
As per a report, the IRS levied $4.27 billion in penalties for mistakes businesses made with their employment taxes. Manual processing is bound to create errors which can lead to miscalculation in taxes, ignoring taxable items, feeding forms with incorrect information and much more. And these errors come at a huge cost! Hence, an HR and payroll software becomes all the more critical as it helps organisations avoid these mistakes. Such software companies also keep updating their systems to stay on top of federal and state requirements.
3. Customisation to fit your business needs
A payroll software is flexible to take into account the way your organisation functions. Whether you run payroll weekly or monthly, what are the compensations structures for various roles, benefits, bonuses, all of this can be customised and tailored to suit unique needs of organisations. This drastically reduces effort on admin side to keep ensuring constantly that all requirements are being adhered to.
4. Employee portals
A payroll software gives anytime anywhere access to employees where they can view their own pay and benefits records at the click of a button. Such a portal can improve employee morale as the access is uninterrupted and also promotes a culture of transparency. All key information related to the employee including critical documents can also be stored online. This lets them have a greater control over their work lives and also saves time of employers, who can also easily access this data.
5. Easy integration and access
A payroll software also comes with integration options, which can allow employers to give login access to employees, HR, syncing options with attendance or time tracking etc. Whatever the demands be, software integration and features in a payroll software an let you collaborate with other people in a way that lowers the pressure on administrative work and makes processes more smooth and streamlined.
Want to know more? Here is a guide on things you need to look for in a payroll software.
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