Are you one of almost 30 percent of businesses still using payroll technology more than 10 years old? If so, your days of working with paper timesheets, punch cards and physical time clocks should be over.
Luckily for today’s entrepreneur, modern technology makes payroll administration easier and more affordable than ever. You can use cloud-based platforms, automated workflows and mobile-friendly apps to accurately manage payroll on the go, and assure compliance.
Payroll administration is a lot more than just handing out checks. Cloud-based payroll systems make it easy to share data, work remotely and stay up to date on ever-changing labor laws and requirements. They simplify data collection to determine how someone should be paid, how benefits time is managed, how taxes are withheld and paid, and how compliance and reporting is conducted.
Here are five ways technology is simplifying payroll management, reporting and compliance.
Powered by the cloud
Software updates and data backups are automatic, and keep you current with tax compliance and other regulations. Convenient, remote access eliminates the need to be at the office to run payroll. And with your payroll and Human Resource Information System (HRIS) data stored in the cloud, in a single system, you have better, more secure control over sensitive data such as Social Security numbers, compensation, benefits and address information.
Increased process automation
When multiple people are inputting the same information across a spectrum of applications, the risk for inaccuracies increases. Payroll automation creates error-free data by eliminating this manual and redundant entry. Additionally, modern payroll software accesses all relevant information necessary to automatically adhere with ever changing federal, state and local tax codes, wage rates and more.
Bio-metric time tracking
Employees today can clock in or out with their phone, iPad or the web using facial recognition and GPS. This eliminates “buddy punching” and records late arrivals, early departures and unplanned absences. Geo-Fencing is used to draw boundaries around the site where employees can clock in and clock out so you always know the exact location of an employee. Recorded time punches are automatically sent to payroll.
Online employee engagement
Self-service and a greater focus on the employee experience are hallmarks of modern payroll systems. Today’s self-service portal enables employees to track their time, update personal information and manage their benefits on their laptop or mobile device - without ever having to contact another person. Mobile apps also allow employees to remotely access schedules, swap and cover shifts (with manager approval) and request dates/times to take off. Additionally, job seekers can apply to open positions via text to make it easier for you to recruit new hires. Applicants can fill out and submit forms online. The hiring process needs no face-to-face time with an applicant until the final interview.
Unified data access
Having different systems talk to each other makes payroll much easier to manage. The data belonging to the areas of benefits administration, payroll, deductions, taxes, staff reviews and more is today integrated and consolidated across platforms so you can quickly access and reference it.
These payroll technology advancements can save you substantial time and money, and also do a better job of keeping you compliant with current labor laws, tax regulations and filing requirements. Upgrading your legacy payroll system will have you working smarter, not harder, and you’ll be asking yourself “why didn’t I make the change sooner.”