The U.S. Environmental Protection Agency’s (EPA) Water Infrastructure Resiliency and Finance Center, in collaboration with the...
No matter how large or small a business, hours upon hours can be spent managing the financial aspects of the company, including payroll. Payroll in particular can be very time consuming because there are so many aspects to consider: full-time hourly employees, part-time hourly employees, seasonal employees and salaried part-time employees. Don’t forget vacation pay, bonuses, direct deposit, manual checks and taxes. It’s no wonder utilizing a payroll service often seems like a great idea.
Stop for a moment and look at how much time and money you spend using that payroll service. Most often, you keep all of the payroll records on-site, such as the daily postings, number of hours each employee works and vacation and sick pay information. All of that information is entered, recorded and the data is most likely generated into a report. These reports are then sent to the payroll service so you can have checks generated for payday or direct deposits are set up.
Every time an employee is hired, leaves the company or their life circumstances change and they need to adjust their work schedule, you handle the information. That takes a lot of your time and effort. Once all of the data is entered, writing the check or direct deposit is the easy part.
The U.S. Census defines “payroll service” as a service that “involves obtaining information on hours worked, pay rates and other payroll-related data from client organizations on their workers and using that information to generate paychecks, payroll reports and payroll tax filings.” The operative word is “obtain.”
Before a payroll service can help you, your business needs to collect all of the information to send on to the payroll service, which requires your time. It seems as though you have already done the hard work—just think if you had the right payroll software to take that data and process it yourself.
Many businesses can save money and add profit to the bottom line by using payroll software and keeping payroll in-house. Here are some things to look for when shopping around for payroll software:
Choosing a Match for Your Business
There are many payroll programs available from which to choose. Some programs have all of the features noted above while others have only a few. Do some research and choose your payroll software carefully, ensuring your product will do all that your business needs it to do.
When all is said and done, remember that the purpose of processing your payroll in-house and purchasing payroll software is to utilize the wide range of additional tools that can help your company increase efficiency, reduce costs, access the information you need at your fingertips and most importantly, pay your employees on time.