In this mixed economic environment, companies continually push their business limits by expanding and growing globally. On the one hand, growing a business is challenging, while on the other, managing its payroll process is quite cumbersome. Thankfully companies are now embracing payroll automation systems to streamline their workflows.
Yes, from wages to overtime calculations, direct deposits to benefits, companies are incorporating payroll software into their organizational processes. Right from making payments, calculating salary, and time-offs to determining the travel expenses, a payroll system eases the work of an HR. That is why it is said to be the next frontier of HR software.
In fact, as more and more organizations have started adapting HR transformative initiatives, payroll automation is pulled along too. Besides, this is particularly best for companies with gig workers because they work on on-demand pay models, which traditional payroll systems cannot offer.
Here, we will discuss some of the significant benefits that payroll automation can bring to your business.
Benefits of Payroll Automation
1. Reduce Time Spent in Leave and Attendance Tracking
The crucial part of an effective payroll process is keeping a tab on employees’ leave and attendance. If companies rely on manual processes for this, an HR manager requires tracking these through email, spreadsheets, or texts. This takes up a lot of time.
Instead, payroll automation makes this easier by capturing and delivering the data in real-time. Thus, HR can save time and focus on other critical organizational goals. Though attendance management software takes care of employees' time-offs and leaves while enhancing accuracy through single or multi-level approval, payroll management software takes care of different aspects of HR operations as well.
2. Quicker Wage Calculations
When manual payroll is involved, HR or the payroll team needs to pore over spreadsheets, calculate various types of payments, and then pen down checks. Even if the company has a handful of employees, this process consumes a lot of time in every pay cycle.
On the contrary, an automated payroll system can perform all the complicated calculations like tax deductions, wage calculations, bonuses, raises, and more in no time. Moreover, it is efficient to generate paychecks and initiate a direct deposit. Thus, it ensures error-free calculations.
3. Improved Recordkeeping
Depending on the employment laws of different geographies, companies require keeping the employment tax records for a specified period. This adds up a substantial amount of paperwork as it involves filling, filing, and storing different forms.
Now, payroll automation software curbs all these hassles because they are compliant with such laws. They generate and store these details, thus reducing the HR's efforts. However, you need to check with your software provider if the tool you are deploying is compliant with the employment laws of your country or city.
4. Power to Multitasking
Right from keeping track of leave and attendance to submitting expense reports to managing changes in employee data to tax calculations and compliance management, and HR needs to juggle between things at a time. Handling all these manually can create havoc at the time of payroll. On the contrary, payroll automation takes care of every HR operation and makes multitasking easy-breezy.
5. Facility of Employee Self Service
Whether the organization has got 10, 20, 50, or 100 employees, changing details of each is time-consuming. Therefore, payroll automation facilitates companies with Employee Self Service functionality. Here, your employees can view or edit their details themselves. Nevertheless, you can choose to control the viewing or editing rights as per your company’s policy.
6. Eliminate the Clutter of Paper
One of the foremost benefits of payroll automation is that it eliminates paperwork. Hence, you don’t require purchasing or installing any costly equipment. Instead, you can access everything through the internet at any time and from anywhere. Moreover, it cuts down on performing various HR operations. This leads to increased productivity and boost in your HR’s performance.
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7. Generate Multiple Reports
With payroll automation accompanies the ability to generate various reports. Some of the vital reports that you can create effortlessly with payroll management software include:
- User-defined reports
- Payroll statements, salary register, or wage reports
- Reconciliation report
- Reports under employment laws of different states
- Professional Tax reports
Processes You Can Get Rid of with Payroll Automation
With payroll automation, any organization can come out from the following fuss:
- The redundant and tedious process of manual data collection
- Following-up employees to take actions on their attendance and leave activities
- Providing pay details, leave status, leave balance, etc. individually
- Delay in payroll processing
- Human errors in tax or wage calculations
- Manual data entry or changes in employee data
Now that you have known the benefits of payroll automation make sure you don't overlook them. Otherwise, you may fail to keep up with the latest technology trends and be deprived of the growth that your competitors are achieving.