Online payroll software can be a major catalyst for the growth and success of businesses of any size.
[This post was originally published in October 2016 and has been substantially revised and updated.]
Among the many reasons that businesses should consider an online payroll software process, increased efficiency is at the top. Another option could be simply outsourcing payroll to a competent payroll service provider like Accuchex, but this may not be a feasible one for some small to medium sized businesses.
While outsourcing payroll will save staff time, money and resources, you may not be able to afford outside human resources and payroll services. Ideally, outsourcing can be the best payroll solution for your business. And, in addition, many payroll services such as Accuchex offer related services like insurance solutions, retirement planning, and HR functions.
However, we also offer world-class online payroll software solutions.
Cloud-Based Payroll Computing for Your Business
Businesses have become more environmentally aware and it has become increasingly common for a company to implement policies and practices for reducing carbon footprints and excess waste. Opting for a cloud-based payroll computing solution provides a "green" approach to a cost-effective and efficient payroll process.
Among other benefits, online payroll software greatly reduces paper usage, saves you money, and helps retain our natural resources for future generations.
In addition, more employees are taking advantage of direct deposit of their payroll checks. Online payroll software simplifies this process and, as a result, there is rarely any need for paper checks except in the case of special circumstances. An added convenience of using direct deposit is that employees no longer need to leave the office during work hours to deposit their checks and reduced driving time, as well.
By using an expert online payroll service provider, setting up your payroll online is quick and easy. In addition, the advantages provide benefits for both the employer and employees.
Five Online Payroll Software Advantages
Here are some of the ways using an online payroll solution will help you and your company:
- Easy Access
No more “store forward” and overlapping data entry. If you can access a web-browser, you can process your payroll anytime, from anywhere you have Internet access. Online payroll software allows you to have the ease and cost-effectiveness of operating in a real-time, web or PC environment.
- Direct Deposit
Today most people have checking accounts linked to ATM cards, so having direct deposit enables them to have almost immediate direct access to their funds, instead of having to wait several days until the funds are cleared. Also, since employees don’t have to drive to their bank to deposit their check, it reduces driving which saves gasoline and carbon emissions, furthering the positive environmental effects.
- Retirement Account Reporting
A online payroll solution, like Time2Pay, offers 401k and other retirement investment accounts withe comprehensive online access, allowing employees to check their accounts, make investment elections, and access other information online instead of waiting for paper statements in the mail.
- Benefits Information
Having your payroll solution provider set up online health insurance coverage eliminates the need to send out statements via the U.S. mail. Employees can also review the status of medical claims online.
- Tax Reporting
Payroll service firms can file all the IRS forms that are required, correctly and on time. Online payroll processing programs will send out reminders of when filings and paperwork are due, reducing penalties and keeping business owners compliant.
Choose Online Payroll Software and "Go Green"
While the impetus to "go green" is an important motivator, there are many other good reasons to opt for a green, paperless payroll process.
1. Employee Access Through an Online Portal
A survey from the American Payroll Association (APA), 2014 Getting Paid in America, found that over 8 in 10 employed Americans have access to pay and benefits information from an employee self-service portal. With cloud-based technology, you can streamline and improve your payroll process.
The same survey revealed that over 49 percent of employees access the portals from a desktop computer, another 25 percent use a laptop computer, while over 7 percent access them from a smart phone. Employees overwhelming prefer this direct access and the flexibility of being able to use different platforms.
2. Increased Efficiency in the Payroll Process
While it is true the payroll management and HR functions in general do not generate revenue, they can certainly add significantly to your business's bottom line with reduced expenses and lower personnel costs. This can be accomplished through the implementation of a paperless payroll solution. Accuracy, speed, security and convenience all add up to time and cost savings.
3. Mobile Access to Pay Stubs
According to the APA's surveys, HR professionals have been moving to mobile-enabled processes by over 75 percent since 2012. Most of these new uses have been in payroll and recruiting, as well as performance management, and employee development functions. In addition, over 24 percent of survey respondents who still receive paper checks say they regularly use smart phones to deposit those paychecks.
“Organizations are scrambling to react to the demand for mobile-friendly solutions to everything, as employees get more and more attached to their digital tethers,” according to a white paper from TalentWise, a recruitment technology company.
4. Secure Access to Payroll Information
Security is a critical concern for businesses and individuals. The threat of identity theft and cyber-theft of businesses is an ongoing reality. Eliminating paper pay stubs can drastically minimize the potential of sensitive information being at risk. If a pay stub doesn't exist it can't be lost or copied.
In addition, an online system will provide your employees the peace of mind and convenience of viewing their pay stubs securely and at home. And having an online paycheck system along with online reports also means no lost records.
5. Reduce Paper Waste
According to the APA survey, over 40 percent of American wage earners still receive a paper pay stub. That is equivalent to almost two billion paper check stubs annually. In addition, over 74 percent of employees in the U.S. still receive paper copies of their annual Form W-2s.
While eliminating all paper may still be impractical for now, a large and significant reduction in paper use and waste paper accumulation can be had with a green payroll system.
Save Time, Save Money, and Help Save the Planet
Investing in the best available online payroll software for your payroll processes is a viable option for many businesses. However, keep in mind that another good solution you can consider is outsourcing.
This can be done by simply outsourcing one process such as payroll. However, with a full-service provider such as Accuchex, you also have additional options for outsourcing as well.
Let Accuchex help you in managing your HR needs, payroll processes, and staying on top of compliance demands. Get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.