How Timely and Accurate Payroll Saves Your Business Money

When payroll is handled in-house or with a manual, paper-based process, it can lead to excessive time spent addressing payroll taxes, overtime calculations, worker’s compensation, and much more. The cumulative hours spent by staff can add up quickly, and even one-time errors can lead to penalties for noncompliance or cause employee turnover due to underpayment or a lack of trust in company HR practices.

How Timely and Accurate Payroll Saves Your Business Money

For businesses that aim to dedicate more time to their core business operations and support their employees, a timely and accurate payroll platform can be a game changer. A streamlined, cloud-based platform can automate payments and deposits, provide alerts regarding errors/discrepancies, generate reports, and grant employees the flexibility to use the platform on-the-go from a mobile device.

In this article, we’ll explore how an automated, cloud-based payroll system can save your business money, maximize time spent on key business operations, and ensure long-term employee engagement and legal compliance.

The Value of Accuracy

With payroll, accuracy is everything. An in-house or paper-based approach can lead to a host of errors related to categorizing employees, disbursing wages, managing overtime wages, providing benefits statements, filing a range of taxes, or recording employee hours.

Although it’s easy to see the concrete financial and tax-related consequences of these mistakes, it’s also important to understand the broader, business-wide impact. As just one example, underpayments can lead to issues with employee turnover, diminished employee engagement, and reputational damage (by word of mouth or through legal action taken by the employee). 

Payroll can have a major impact on employee satisfaction and retention, as well. If employees feel that their employer uses an antiquated or unaccommodating payroll system that makes their time reporting, PTO requests, or manager approvals a consistent headache, they are likely to feel dissatisfied and possibly even inclined to leave the company. With the high cost of replacing employees, it pays to invest in a modern payroll system that grants employees easy access to employee information, time reporting, HR requests, and more. 

Streamlining Benefits, Workers’ Compensation, and Related HR Tasks

Working with a qualified payroll provider makes managing employee health coverage, workers’ compensation, retirement, and other benefits a comparative breeze. This includes ensuring legal compliance by staying up to date with local, state and federal labor laws, or assisting with choosing plans that are best suited for your company and its employees. When handling injury/workers’ compensation claims or unemployment claims, a qualified payroll provider can ensure that your business is protected, spared legal penalties, and able to resolve claims in a timely and accurate way.

Cost (and Time) Savings

By working with a qualified payroll provider, you bypass the need for a payroll clerk or any independent investment in software updates, in-house payroll training, office supplies and other fees. Instead, a payroll provider will consistently offer leading-edge software, advanced security measures, and cloud-based/mobile access features that cater to employer ease-of-use and employee accessibility.

Collaborating with a payroll provider can be at least 35% less expensive than handling payroll processes in house, with more savings to be found when bundled with other facets of HR like time & labor management, benefits administration, HCM, and more. Of course, this is without accounting for time saved on redundant data entry, organizing pay stubs, calculating deposits, monitoring legislative changes that affect company policy, and much more. With the right software and guidance, your staff can instead shift focus towards essential projects and leverage new payroll tools to evaluate and improve productivity.

Avoid Legal Fees and Penalties

When paired with expert support, payroll software allows your business to quickly identify payroll errors as they occur. Payroll providers employ consultants with years of experience in interpreting local, state, and federal tax codes. These consultants can assist you with adherence to tax codes, general compliance with labor laws, and rectify any payroll errors before they pose a more serious problem during tax season. 

A qualified payroll provider can also help you create or improve your company policy regarding HR policies, whether it’s paid time off, benefits administration, or other facets of HR. In sum, the tools and expertise offered by a payroll provider can majorly mitigate the risk of compliance violations that can lead to costly penalties for your business. 

Enjoy Simplified and Cost-Effective Payroll with Workforce PayHub

Streamlining payroll can save your business money and improve employee satisfaction in the process. Workforce PayHub provides professional guidance and intuitive tools that automate and expedite payroll to support your most valuable asset: your workforce. If you’re looking for more comprehensive support, our payroll services can be easily integrated with benefits administration, time & labor management, HCM, and more.

Ready to enjoy mobile, cloud-based software that simplifies payroll for you and your employees? Contact us today to let us know how we can support your goals.

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Eric Jones
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