Payroll may not be the most exciting part of running a business, but it is essential to any company. Payroll systems have been around longer than we may realize, dating back to the 14th century. A business requirement that has lasted this long isn't going away anytime soon.
Thanks to technological advancements, payroll software makes the process more straightforward and efficient. But what is a payroll system and how can it help you?
Since automating payroll is paramount to a successful business, the product you choose should seamlessly adapt to your company's needs. The program automates, manages and organizes tax returns and pays employees based on basic data.
Instead of hiring a costly payroll service, read on to learn how payroll systems can help you invest time and effort into your business.
What is payroll software?
A payroll system is a program designed to streamline and manage employee payments. It manages and automates payments to employees and ensures that paychecks are delivered on time and comply with local and federal regulations. Free payroll software frees up HR departments to focus on other tasks, such as planning and budgeting.
The payroll system has evolved as business owners have recognized the need to track purchases, sales and all company finances in order to run a successful business. As a smart, business-minded person, you know how important this is. However, tracking these types of finances can be time-consuming and tedious for a business of any size.
Fortunately for accounting and human resources departments, payroll systems can take care of most of the payroll process. From conveniently storing basic employee information to keeping up with current tax laws, there's not much a payroll system can't do for you.
Payroll automation is compatible with existing back-end systems to do the heavy lifting of time, payroll and tax calculations while maintaining compliance. Some are part of a human resources information system (HRIS) that helps implement HR functions.
The obvious benefit of a payroll system is general payroll administration. Automatically calculating wages on a predetermined schedule is a major benefit. Often, small steps require information such as EIN, payroll schedule, employee classification type, and state ID number.
You can also include policies from your company manual and grant access to specific professionals. Once set up, the system runs payroll unattended unless you need to manually add certain adjustments.
Time tracking and attendance monitoring
For any business that pays its employees an hourly wage, the ability to track time and attendance can be the most beneficial feature of a payroll system. A payroll and timekeeping system eliminates the tedious task of tracking employee time cards. These systems monitor absences, sick leave, hours worked, overtime and other factors. Then, this information is seamlessly synchronized to efficiently run payroll.
Do you find tax law mentally taxing? If so, automating this complicated task will feel like a release. It's time-consuming and tedious to keep track of changing requirements and understand the complexities of state and federal tax regulations.
Fortunately, payroll solutions are automatically updated as tax laws change. When it's time to file tax forms, your payroll system can send and pre-fill the documents for you.
Although you'll likely have to sign the agreements yourself, your system will notify you when it's time to file - saving you the hassle of requesting an extension or paying penalties for missing a deadline.
Your payroll solution handles the management of expenses, benefits, and bonuses. A payroll system tracks and calculates various employee expenses. Whether your company needs to account for mileage or offers employees perks like a paid day off on their birthday, a payroll program can help.
HR is much more than meets the eye. Any system that allows employees to take control of their benefits is sure to be a hit. Some solutions include a base of benefits and allow employees to submit appropriate claims. Systems with these features ensure that tracking financial data is easy and accurate.
A payroll system can also help generate various reports and summaries. Your system may be able to generate reports, such as pay stubs or performance reports. Even more useful are systems that allow employees to access and print forms such as their pay stubs or W-2s.
A proper system will save you the hassle of keeping records and allow you to quickly store and locate employee data. With this type of organization, you'll never have to worry about misplaced documents again.
The biggest benefit of a payroll system is the time it saves. Payroll software offers the ability to automate core payroll tasks that would otherwise require a lot of manual labor.
Free payroll software Malaysia can store employee information, keep you up to date on current tax laws, and even automatically calculate wages and taxes.
Most software programs can be customized to set the specific processes your company needs for its payroll system.
According to a 2021 survey by National Payroll Week, 95% of workers use direct deposit because it's the most convenient option. Similarly, 28% said that delaying their check would make it difficult to meet financial obligations. That's why it's important to evaluate your payroll solution and turn your back-office function into a convenient payroll service.
For many businesses, tracking payroll can quickly become a large Excel spreadsheet with many factors to keep track of. From employee hours and overtime to sick time and pay rates.
All of this leaves room for costly mistakes. A simple typo or misplaced decimal when manually entering data can have a devastating impact on finances. According to the U.S. Internal Revenue Service (IRS), 33% of businesses make payroll errors each year. Fortunately, payroll systems eliminate errors to prevent your business from missing out on profits.
When you use a payroll system, you can rest assured that you're paying your employees correctly, complying with applicable tax laws, and tracking relevant financial data. It's reassuring that your HR and accounting departments don't have to waste time correcting payroll errors.
With a payroll system, changes can be made quickly and easily in-house. Even after you've entered your initial withholdings and deductions. If a change is needed later, authorized users can instantly access the system and make the necessary changes without having to go to a third party.
With a cloud-based system, users can update information from the comfort of their own homes, as long as they have permission to access the system.
The Bottom Line.
Regardless of the size of your business and your payroll needs, a payroll system can likely help you. There are a wide variety of payroll systems to choose from. The hard part is choosing the right one. Some of the most important considerations are the size of your business and your budget.
QNE Software Sdn Bhd (QNE) is a dynamic organization located in Kuala Lumpur (KL) that actively provides Accounting System to the South East Asia market. QNE’s solutions are designed specifically to meet the requirement of local business practices and challenging environments.