Automation has been used to make human lives easier for centuries. Ever since the industrial revolution, humans have gotten rid of repetitive and tedious tasks by teaching machines how to do them. In today’s age, we have come a long way in all aspects of automation in various fields, from cleaning our homes to processing payroll data in a company.
Automation is useful in business and automating the payroll process provides various benefits to companies using it. These advantages are not exclusively reaped by the companies either. Employees, too, can greatly benefit from automated payroll solutions.
1. Automation provides faster payroll calculation
Manual payroll calculation takes an immense amount of time. A company needs people looking over various excel spreadsheets, comparing information from different sources, and calculating everything “by hand”.
With an automated payroll system, all a human resource employee needs to do is to enter all of the information once, and the system will take it from there. The final result will be the correctly calculated payroll for each employee.
2. Payroll automation saves money
Companies that employ some form of automated payroll software do not need to have a lot of HR and financial personnel. This will greatly reduce the company’s operating costs and improve the bottom line each year.
Automating payroll processing will be especially beneficial for companies that do not have an in-house solution for payroll management and rely on outsourcing payroll services. These companies will not only reap the benefits of automated payroll in-house but also save money they would usually spend paying someone else to pay their employees.
3. Tracking time is less stressful
Tracking working hours for employees via manual processes is a time-consuming and stressful task for the human resources department. The HR employees need to pay attention to the time clock and hourly wages of all employees in a company. Companies that automate payroll will greatly reduce the stress their human resources department is experiencing during each pay period.
Automated payroll will also benefit employees as they will receive a simpler way of timekeeping that will make tracking their working hours much easier. Additionally, they will a payslip that perfectly corresponds to their working hours and hourly wages, each pay period.
4. Automated payroll = fewer chances of human error
Automation reduces the chance that an overworked HR employee will make a mistake with an employee’s wage calculation or that a piece of employee data will get improperly entered. While these types of mistakes tend not to happen very often, they still happen from time to time. And once they do happen, they take a lot of time to correct and cause issues for both the employee and the company through various reimbursements and legal vicissitudes.
Introducing automated payroll will reduce, if not completely eliminate, the chances of someone missing an Excel box, or improperly entering information.
5. Payroll automation makes payroll tax calculation easier
Calculating taxes is a dreaded task for most people across the globe. And if there was a way for them to streamline the process, they would take it in a second. The situation is similar for companies determining payroll taxes and withholding tax amounts for their employees’ income.
This is another advantage of having an automated payroll system. These types of payroll software solutions already have tax rates and tax rules embedded in their code. This means that they make wage deductions such as employment tax and employee benefits automatically.
6. Automating payroll allows faster payroll processing
Automation introduces self-services for employees looking to collect their paycheck. They can enter their own information into the HR software provided by the company and, once the data has been checked and approved by the company, the employee will receive their paycheck automatically, each pay period.
This greatly reduces the time required for each pay stub to be processed and paid into the employee’s account, no matter which types of payment the employee uses.