Any business owner knows that maintaining business records takes the cake for being the most time-consuming job. Right from drafting paperwork, to printing it, filing it, and then storing it in a manner that it is accessible when needed, is a task that requires due diligence. There are bound to be few errors along the way, given the nature of the task. Thus, a digital solution is recommended to get rid of hefty paperwork. Nowadays, we live in a digital age. Businesses are adapting to the new age by upgrading their legacy methods and indulging in the joys of digitization. All processes are automated to the maximum capacity. This elevates productivity as employees are not stuck in doing mundane tasks so they can focus more on important innovative ideas.
One of the spoils of digitization that industries enjoy thoroughly is payroll software. Payroll software is a digital tool that deals with the process of managing employee payments and filing their employment taxes. Payroll software works by keeping track of the working hours of employees, assessing their wages in accordance with their logged hours, withholding deductions, printing their paychecks, paying federal taxes, and much more in the background. Some payroll software offers complete payroll solutions where they even have a direct deposit feature that automatically credits the employee’s bank account with monthly wages, saving a lot more paper in the process. However, this feature requires appropriate authentication.
There are numerous ways in which payroll software can be an aid to your business by simplifying processes for you. Let’s take a look at the kind of beneficial features a payroll software houses that can completely revolutionize the way you maintain payroll.
1. Digital Intercommunication
HR and Accounts are two independent modules of any business. While HR takes care of employee management, the accounts department takes care of wages and balance sheet maintenance for an organization. IT is crucial for the smooth running of a business that HR data and accounts data are correlated. This helps the accounts department in calculating wages on the basis of employee work hours maintained by the HR department. Most of the time it happens that the two modules are opaque with little to no connectivity between them. This leads to serious trouble on payday. One of the benefits of having payroll software is that your independent modules converse seamlessly with one another. There will never be an issue of mismatch of data as the records are centralized with easy 24/7 access.
2. Compliance
Federal and state laws keep updating regularly. According to that, taxes and deductions from employee wages also vary. To keep track of this evolving law structure is crucial to keep the business compliant with government norms. Failure to do so can result in hefty fine payments. This advantage is provided by payroll software. Not only does it update federal tax regulations automatically, but it also makes adjustments to employee salaries accordingly. All you have to do is push the button to initiate the payroll process.
3. Automatic Tax Filing
Do you keep losing your employee W-4s and I-9s? With a payroll software offering complete payroll solutions, you won’t anymore. Payroll software also helps your employees to pay their income tax by automatically generating a signed Form-16 so that they can understand their tax brackets. Apart from filing your forms, it also executes automatic tax deductions, maintains a summary of EPF, ESI, and professional taxes, maintains your audit trails, and also generates a detailed report about it.
4. Least Paperwork
The Digital Era is the Green Era. With the onset of technology that minimizes human work, paperwork has also substantially reduced in the process. Reports are generated directly by the software in a matter of minutes. Some payroll software offers direct deposit functionality so even the printing of paper paychecks is eliminated. Maintaining employee records is now a matter of seconds with the digital database that is centralized so that duplicity of records is no longer an issue. These features help in creating a sustainable business.
There are many more such benefits that can turn your head towards investing in payroll software for small business right away to make your business much more efficient. If you are wondering which software to pick. UZIO has a host of features in their complete payroll solutions that are completely cloud-based. Gone are the days of payroll being a hassle. Make your business more tech-friendly by incorporating payroll software in your business today!