When most people think about payroll, technology is probably not the first thing that comes to mind. After all, payroll is really just about numbers and math, right? The truth is, technology can play a big role in all aspects of payroll. While a good payroll processor might be able to issue paychecks with nothing more than a simple calculator, this isn’t very practical or realistic – not to mention the greater possibility of payroll mistakes that comes from doing the work manually.
Payroll is a Challenge
Anyone who has dealt with payroll knows that payroll is more than just a simple calculation of wages x hours. Timesheets must be collected for employees who are paid on an hourly basis. Each person may have different a different tax situation based on their Form W-4 and applicable state elections. Depending on where the employee is located, there might be local taxes to consider. Payroll deductions for things like retirement plans and healthcare can impact the amount of earnings that are subject to those taxes.
And that’s just the beginning. A company with higher earners will need to keep track of each employee’s year to date earnings, to make sure wage limits for certain taxes are being handled properly. Payroll taxes need to be deposited on a regular basis, and in most cases, quarterly filings with the various agencies are required. W-2s need to be issued every year, and payroll records must be retained for several years to comply with various agencies’ audit requirements. Employees will inevitably need easy access to their histories as well, as it is common for banks or lenders to request copies of pay stubs or tax forms.
Technology Makes Payroll Easier
Thankfully, there are tools available that can help. While a business may opt to use simple accounting software to process payroll, many companies choose to go with software that is more robust and functional. These systems can help make payroll very organized and extremely easy for a business, while maintaining the accuracy and timeliness that their employees expect. Many of these solutions are cloud-based, which means a lot of information can be stored and made easily accessible, without having to keep piles of paper and overstuffed file cabinets in the office. Some solutions also offer integration with timekeeping systems, so the payroll team isn’t spending valuable time reconciling paper timesheets every pay period. Having a cloud-based solution also means employees’ sensitive and private information is kept safe and secure from physical threats such as burglaries or natural disaster.
Some of the more sophisticated tools can integrate additional features such as electronic onboarding for new employees, leave management, and record retention. A business may choose to store personnel files electronically, which might include certifications awarded to employees, performance reviews, and other HR documentation. An integrated solution allows a company and their employees to access everything they need in a single location, meaning less passwords to remember, less confusion, and less time wasted. Self-service functions can also allow employees to access information to be retrieved at any time without submitting requests and waiting for a response from the HR or payroll department.
Trust a Payroll Provider that Uses the Latest Technology
Utilizing the right technology can be extremely useful for your business by helping to produce accurate payroll, streamlining processes, and making data easily accessible to those who need it. Valor Payroll Solutions offers tools for timekeeping, payroll, and human resource management to provide the support you need to take your human resources and payroll to the next level. Avoid costly payroll mistakes and contact Valor Payroll today!