Payroll is one of the least appealing business tasks for small employers, and one that comes with financial and legal liability. Payroll mistakes have ramifications from the government and your employees. Using online payroll service solutions will automate payroll and eliminate much of the chance for error.
Three of the biggest benefits of using online payroll services include generating payroll, paying taxes, and filing forms – all compliance issues that have some serious consequences if not done properly or on time.
- Generating payroll – Online payroll services calculate all of the data required to process employees’ gross pay, taxes, and withholding deductions for health and voluntary insurance, and net pay.
- Paying taxes – Failing to pay the correct taxes at the correct time incurs steep fines from state and local government, but online payroll services calculate the taxes and send in the payments.
- Filing forms – Online payroll services perform tax filings and record them in order for business owners have a record of compliance.
Problems Solved with Online Payroll
Manual payroll is a tedious process riddled with the chance for errors. Online payroll is a fast and accurate process/service that saves hours if not days and simplifies the payroll data entry process. Online payroll cuts payroll processing down to a time and cost-efficient process, saving money on payroll management staff. There is much less input required than with a manual process, and the existence of a built in calculator eliminates manual calculating, increases accuracy, and automates reporting and reminders. Tax payments are easy and automated, many services offer employee access or self-service, and often online payroll processes can be integrated with the rest of the company’s financials.
Setting Up Online Payroll
Setting up online payroll services requires some implementation but once employee information is entered, such as contact information, direct deposit data, company benefits, payroll information, company pay policies, and company tax identification numbers, regular processing is simplified.
Processing the first payroll after implementation is usually as soon as banking information is verified, sometimes the same day. Setup wizards and technical support are usually available to assist payroll managers during setup.
Keeping Up with Payroll Regulations
A major problem for busy payroll managers and business owners is keeping up with changes to payroll regulations. This is solved with online payroll processing, which automatically updates this information as it is introduced or changed, so there’s no missing deadlines or getting fines for tax violations.
Contact us now to see how online payroll services with PAYDAY will benefit your company.