Benefits of an Online Payroll Software.

An increasing number of companies and businesses are transiting from the traditional payroll system to online payroll software. The online payroll software offers many benefits over the traditional method and results in simplified, time saving payroll processes. In business, time is the essence related to productivity and development resulting in modernization of processes for maximum benefits. Online payroll software is one such modern tool that brings the required benefits. Here are some of the benefits of an online payroll system.

Payroll Benefits

1. Cost benefits: There are many cost benefits of using an online system for payroll such as you don’t have to pay huge fees or license cost upfront. You pay for only as much as you make use of. On the other hand, buying costly payroll software considering the future scaling-up-needs may just not be required in this case.

2. Easier to use: Data entry is much simpler in an online system. The traditional method involves tedious inputs under various heads for numerous employees and long calculations and deductions in various spreadsheets. Under an online payroll, data entry is simplified and easier, resulting in time saving.

3. Reduces the chance of errors: The online system is automated to quite an extent, hence chances of errors are reduced drastically. Traditional payroll system or the in house payroll may have errors and rectifying them can be very time consuming with reprinting checks or delayed payroll that may result in disgruntled employees.

4. Tax calculation and payment reminders: Online payrolls auto-calculate and deduct taxes according to the requirements under labor law and compute the income tax efficiently for all employees ensuring labor law compliances. Latest online payroll update you with the amendments in concerned taxations and make calculations accordingly, thus eliminating the stress of tax compliances.

5. Easy accessibility: With an online payroll, you can easily access the data from across the world with help of the internet. Thus, computing and processing salaries can be done from anywhere in the world and if your business requires travelling, you can process the payments from across the globe. You can access and amend information globally without the need of your office desk.

6. Simplified sharing: With a modernized online process, employees can access their salary slips, leave and attendance information from anywhere. The process of claiming reimbursements or declaring investments becomes a streamlined task without wastage of HR time. Moreover, all information is stored in one location giving you better control over it. In an online payroll system, there is lesser likelihood of any errors in attendance records, leave adjustments and salary calculations as the data is shared with the employees through the month.

7. Government reporting becomes easier: Government compliances related to employees is a massive task and it becomes much easier with automated online payroll system such as filing of PF, ESI returns with accuracy and on time.

8. Lesser maintenance than in-house payroll system: Online payroll system saves the cost of setting up and maintaining your own in house payroll computer system. Configuration, testing, maintenance will require IT staff and manpower – the online system eliminates the entire process and spares a lot of trouble. The online payroll system comes with technical support and help and in the event you may face any issue, it gets promptly answered by the support staff of the vendor.

9. Easy portability: Some cloud solutions providers might trap their customers through what is known as vendor lock-in where the customer can’t move the data to another service provider because of the proprietary software used by the first vendor. It is important to ensure that there is no vendor lock-in in your cloud services subscription.

The online approach to payroll processing has numerous advantages like time savings, meeting deadlines more easily, quick access to data, efficiency, error-free calculation and cost effectiveness. With improved processes, both the employer and the employee feel satisfied and productivity is augmented. A big headache of payroll and compliances can now be easily handled leaving HR with more quality time for efficiency without having to spend hours on data entry and calculations and numerous spreadsheets. If your company hasn’t already adapted to the new payroll way, it is about time to change the old ways!