Paying your employees is the most fundamental part of running a business. To keep them happy, you need to pay them the right amount, and on time. Payroll software can simplify this for you.
This may sound like a simple process, but once you start hiring more employees, it can quickly spiral out of control. Keeping track of the different pay grades, attendance, expense claims, statutory deductions and more is an extremely tedious process. Thus, many businesses hire payroll specialists just to keep on top of the latest payroll regulations.
What Payroll Actually Consists Of
Payroll is more than just paying salary on time. It also includes:
- Different compensation models: You may have salaried employees paid monthly, part-time employees paid hourly, or commission-based salespeople.
- Statutory deductions: In certain jurisdictions, employers are obligated to deduct certain sums from employees’ pay, such as income tax and/or pension fund contributions.
- Benefits and expense claims: You will need to track these payments and include them in payroll for them to be taxed suitably.
- New hires and leavers: Their salaries need to be pro-rated according to their normal pay.
Different Ways of Managing Payroll
There are different ways to manage payroll, depending on your business:
- Manual payroll: It is possible to manage payroll manually, but it’s only feasible when you don’t have a large headcount and a dedicated HR person. It may seem like the cheapest option on paper, but it gets tedious quickly. The costs will quickly outweigh the cheapness.
- Outsourced payroll: Outsourcing payroll to an accountant or dedicated payroll provider is a common way of relieving the burden off HR. However, this solution does not scale well as headcount increases. Furthermore, detailed payroll data and analytics are usually not available.
- Payroll software: This is an automated, cost-effective way of doing payroll. You don’t need prior experience to set the software up, and you can easily scale up as your business grows. But there are many choices out there, so you need to make your choice carefully.
Why Payroll Software Saves You Money
As they say in business, time is money. Doing payroll manually is tedious and repetitive. Payroll software automates the entire process, letting your HR team focus on more important tasks.
Cutting Outsourcing Costs
Outsourcing your payroll can get expensive quickly, especially as your business grows. Modern payroll software is designed to be intuitive and user-friendly, so that your HR team can get going with it quickly.
With payroll software, tedious payroll tasks like sending out payslips are automated for you. What’s more, complicated calculations like statutory deductions, expense claims, and variable commissions can be calculated automatically.
With the amount of statutory deductions that you need to deal with, it can be complicated to calculate. If you calculate these deductions incorrectly, you may put your company at risk of payroll penalties from the government. Payroll software can calculate these deductions quickly and accurately, saving you time as well as the cost of fines.
Payroll errors are costly to fix. If you find an error before salaries have been paid out, you will have to correct it in a time-consuming manner. This can lead to delayed payments, which will frustrate your employees. Worse still, when the error is found after payments are made, you will need to spend even more time and money fixing the overpayment or underpayment.
Keeping Your Data Secure
Data breaches aren’t theoretical anymore – they are a very real threat to businesses. If your payroll data is leaked, your business can be fined. That’s not to mention the reputational damage your business will suffer, leading to a possible loss of revenue.
Enabling On-the-go Work
Cloud-based payroll software can enable HR to run payroll from anywhere. Whether working from home, office, or even a café, HR can log in remotely and access the information they need. Not only that, employees can also log into the system and get payslip information etc using the software’s self-service system.
Save Money with Payroll Software from BrioHR
If you’re looking for payroll software for your business, BrioHR can do everything listed above and more. BrioHR’s all-in-one, cloud-based solution automates repetitive tasks and empowers HR in a user-friendly interface. This enables business owners and HR teams to truly focus on what matters most – people.
Visit briohr.com and get a free demo now.