We live in a digital world. Pretty much everyone, especially since the pandemic, has become very acclimated to using technology to facilitate many tasks in their daily lives. In the past few weeks, you likely used technology to order your favorite restaurant food, buy groceries, and purchase day to day items. You also probably spent time downloading entertainment, handling banking chores, paying bills and sending money to friends and family. For all intents and purchases, we are very reliant on our phones, tablets, and computers.
That reality extends into the small business world as well.
If you have employees, you might want to consider using an online payroll service. Paying your employees timely and accurately is vital. There are so many legalities you need to be aware of when you do payroll that can easily get you into hot water if not done correctly. Hiring an online payroll provider gives you ease of mind by not having to worry about running afoul of the law.
The online payroll service benefits are plentiful. Check out our list of the top five here!
Online Payroll Services are Very Affordable
If you sit down and do the math, you will see how much more affordable online payroll services are compared to trying to do it yourself. Take a realistic look at how much time you, or your accounting and/or HR department, spend on payroll. Account for time spent monitoring timesheets, running payroll, distributing payroll, keeping track of PTO, sick time, making sure insurance is paid, and managing tax filings. Then compare it to the cost of an online payroll service subscription. You very likely will be surprised. Not only can you save a lot of money, but the time you have been using to deal with payroll is now freed up to grow your business!
Online Payroll Services Lowers the Risk of Human Error
With payroll services, online employee data and information is entered one time. This significantly reduces the risk of human error. The employee enter their information, (i.e., employee address, banking information for direct deposit, tax withholding information, insurance and other deductibles, social security number), once. Then all you need to enter is timesheet information which the employees can easily do from the app or program.
Most online payroll service companies offer an app for phones or a program for computers. This is where the employees can enter their time easily and accurately. This is also a great tool for time management. Managers can be instantly alerted to unauthorized overtime or employees leaving work early. When payroll time comes around, a manager just has to approve the timesheets, click send, and the process is done!
The online payroll provider processes payroll, arranges for the funds to be direct deposited, and handles tax and other deductible information. They automatically deduct the expenses from your bank account in one lump sum, which also helps when reconciling your accounts. You receive a breakdown of what expenses are paid to enter them into your accounting books, as well.
Many online payroll servicers also will provide debit payment cards. You can offer these to your employees who do not have bank accounts or direct deposit. These are usually a Visa or MasterCard. The servicers download employee pay onto these cards. Then they can either withdraw the money or use the cards to pay bills and purchase items.
Online Payroll Services are Time-Efficient
It is easy to see how time-efficient online payroll processing can be. Instead of spending hours every month making sure your employees get paid accurately, you will spend minutes! Most online payroll service companies offer 24-hour hotlines. Your employees can call if they have questions or need to update their information.
Meeting Deadlines is Practically Fool-Proof
Online payroll providers build and design their platforms to ensure that you meet all deadlines for direct deposit, payroll tax payments, insurance, and other necessities. Manual systems, due to their very nature, are not as reliable. Missing a deadline can be incredibly costly resulting in legal fees as well as penalties and fines from the IRS.
Super Easy Access to Documentation
Access to documentation is so much easier when you are using an online payroll provider. When an employee needs to find information on a paycheck or to update their information, or an executive needs access to up-to-date payroll information, it is a breeze to access through the online portal. The payroll provider saves your payroll reports online. They give access to people in your organization based on their need to know. These reports can be generated in minutes as opposed to hours or days when done manually. Oftentimes, the online payroll processor can work with you to set up specific and specialized reports for you.
As you can see, the benefits of using an online payroll service are numerous. If you aren’t using one yet, you should consider it.
Here at Accounovation, we recommend Gusto for your online payroll service needs.
The team at Accounovation is technology-driven, process-focused, and people-powered. We provide outsourced accounting to business owners like you. Please feel free to contact us for more information.