Why Payroll Automation and Accounting is important
Expansion of business into the global market with payroll automation
The traditional payroll services and delivery have propelled the multi-national and global service organization to reimagine and reuse their payroll operation. In a mixed economic environment, companies continue to push their business limits by flowing the organic and inorganic paths for growth. 35% of the companies in 2013 embraced automated payroll system. This number rose to 55% in 2017!
Payroll professionals can use real-time payroll analysis to make more intelligent and practical decisions in business development.
How does the Payroll Automation Work?
An automated payroll system allows the employer to import the time clock system into payroll software. So, to clock in and out of working hours, one has to either use a finger print method, or the hand print or a simple card or badge. These entries are transported to the payroll software. Now, the software computes the time of work. The payroll staff member has to only ensure that the time is transported correctly and also to make edits, if necessary.
A good payroll automation system uses a payroll software to calculate all wages. It calculates gross-to-net earnings based on the input data provided by the HR. An automated system ensures correct information calculation on all types of payments:
Deductions are also an inevitable part of payroll processing. Employee paychecks, including taxes. These tasks are time consuming if processed manually. Automation makes the process easy because it would have the tax rules hard-coded into the system. This automatically reduces the chances of errors.
The IRS (Indian Revenue Service) requires employees to maintain employee records for atleast 4 years. The manual processing system requires entering payroll data by hand, which is time consuming and also requires extra effort. An automated payroll system generates and stores payroll and employment tax data automatically without any of these hassles.
What could be the highest expenses regarding a business? Managing the labour costs, no doubt! Many systems have reporting templates that hep managers easily figure out what their payroll costs are for a given period of time. This could also involve factors like the number of employees, vacation balances and the employees with the highest and lowest earnings. This is all made automatic with an automated payroll system.
Essential factors that need to be accounted for when you pay your employees are the time they worked, their hourly, weekly or monthly wages or salaries, vacation leaves and holiday leaves during the pay period. The system calculates gross pay by calculating taxes and other miscellaneous amounts.
Do you have a payroll system? If you already do, does it meet all your needs?
Payroll software system is automating the herculean and redundant work of salary processing along with calculating the statutory deductions. A good and efficient payroll system ensures the calculated amounts to be paid to the employees regularly and on time.Checkout HRTrace the payroll software for business success. So go ahead and check out how HRTrace makes HR and payroll processing efficient and easy to use!