8 Ways Payroll Automation Saves Time and Money

payroll automation process

A more recent payment option that’s growing in use are prepaid debit cards or payroll cards. They’re ideal for workers who don’t have a bank account, but still want immediate access to their pay. You can purchase check stock from the bank that has your payroll account or a stationary supply store. When placing your order, make sure that the check stock is designed to prevent fraud, uses ink that payroll automation can be interpreted by bank check readers and has all of the necessary information. Most will display your business name, the employee’s name and address, the check number and date, and the bank’s name and address. Once the checks are printed, seal them in a double-window envelope so that the destination and return addresses are visible, apply the appropriate postage and put them in the mail.

When you consider these ramifications, it’s often best to dedicate the necessary resources, whether it’s time or money, to make sure you get payroll right. The method you choose to process payroll will determine how long it takes. Manual calculations can take hours to days, depending on how many employees you have and the laws that you must comply with. If you’re a large business that operates across state lines, processing payroll this way is usually unfeasible.

What is payroll automation?

Payroll automation uses advanced technology—particularly through software—to streamline and simplify the complex process of managing employee pay. It can reduce errors and save time and resources for your small business by calculating wages, taxes, benefits, and deductions automatically. Not to mention they’ll be able to access their financial information when and where they want with a user-friendly system. It often requires repetitive data input and the crosschecking of information on several systems storing payroll records. And as we’ve already discussed, mistakes usually follow where dull, repetitive entry is found. With RPA, digital workers continually update employee data management systems, inform stakeholders using automated payroll system notifications and ensure staff is paid the correct amount on time.

payroll automation process

If you’re still manually running your payroll each period, it’s time to automate. Start researching different automated payroll systems and crunching the numbers to estimate the ROI. You’ll find the benefits of automated payroll can eliminate those manual processes that take away from more important tasks. Payroll software automates routine processes, so paying your employees feels simpler each pay period. It can save time and effort on headache-inducing duties like filing taxes, processing direct deposits, generating reports, and calculating withholdings. Performing these tasks manually is time-consuming, leading to errors like missed tax deductions and employee data.

Track Employee Hours and Timesheets

Automated tasks—like calendar auto-syncing or automatic bill pay—might not seem like a big deal, but they can save you a lot of hassle. Automating your payroll process probably did not top your list of strategic goals for the current year. Payroll automation, and most other types of process automation for that matter, don’t inspire much excitement in business owners and executives. At this stage in the game, your company probably relies on independent contractors to perform some non-core services, if not support essential business processes. Your payroll records need to be among that data, even if your automated payroll provider assures you it’s the only such storage system you’ll need. These can linger on in paper form, orphaned from your ERP and digital payroll management system, for years.

Typically, it is seamlessly integrated with the company’s Enterprise Resource Planning (ERP) system. As we’ve seen, automating your payroll process doesn’t take months or years. It’s not especially costly, even if it requires some upfront investment https://www.bookstime.com/articles/bookkeeping-for-franchises-the-complete-guide in software, processes, and training. Your business won’t simply benefit from a fully automated payroll solution. Instead, the integration will help it run like the well-oiled, well-integrated machine you always knew it could be.

Employee self-service

With automation in payroll, companies achieve precise employee compensation, adhere to tax laws effectively, and redirect their workforce towards more strategic roles. This transformation enhances operational efficiency and employee satisfaction while ensuring adherence to regulatory standards. Research from both EY and Deloitte found that the average timescale for ROI was less than a year. It also benefits from comparably low operating expense (OPEX) costs. RPA can easily be integrated with your existing payroll processes and systems, with no need for an expensive or time-consuming overhaul. Let’s dig into some of the specific benefits of using payroll software to streamline HR processes.

There’s only one thing more vexing than running and managing payroll by hand. And that is being outflanked by the competition time after time after time. With a PEO, you are added to their software and have access to automatically calculate and run payroll, pay workers, run reports, and export payroll costs to your company ledger. Square’s payroll software is known for its user-friendly interface, making it accessible for businesses without extensive accounting experience. Square Payroll also integrates with other Square products, making it a good choice if your business already uses Square’s suite of tools.