4 Ways Payroll Automation Will Save You Money
Payroll is easily one of the biggest headaches of every business owner. Manual data transfers, statutory holiday calculations, along with multiple positions and pay rates are basic examples of tedious tasks of payroll.
Innovative payroll software that allows for payroll automation can automate this process and helps business owners gain peace of mind that their employee payroll is done accurately.
What is payroll automation?
An automated payroll system, also known as payroll automation, helps you perform payroll more quickly - by using software to automatically calculate employee pay, and submit paycheques or deductions. An automated payroll system can calculate things like variable hourly wages, overtime, statutory holiday pay, retroactive pay, wage deductions, payroll tax calculations and more. Saving business owners time.
An automated system that is also integrated with time clock, or time tracking software allows for business owners to streamline all their clocked hours directly into payroll. Creating a hands off system with unparalleled accuracy.
Here are four benefits of payroll automation software, and how it can save your business thousands of dollars:
1 - Save time with payroll automation.
With everyone you hire, you are purchasing labour. By automating payroll, payroll admins can spend their time on more important tasks and managers can spend more time on the floor, or managing other aspects of the business. In short, the cost savings add up significantly.
A typical business who has to manually transfer clock-in/out hours from paper or to their POS to their payroll system, can spend on average 5 minutes per employee per day making adjustments.
By investing in payroll software that allows you to run payroll automation rules, you can reduce the amount of time and money spent on the burden of administrative tasks and increase productivity.
With a 100 employee establishment at 5 minutes a day at $20 an hour, this could cost you $60,000
2 - Save on payroll error costs.
Human errors are inevitable when manually calculating hours to payroll. Almost always, mistakes happen whether you're doing manual transfers of employee hours from your schedule or POS system, or via pen and paper.
Payroll errors will negatively impact your employee morale and cost you thousands of dollars. Employees will only complain about payroll mistakes if they are underpaid - which leaves the company susceptible to overpaying employees for payroll errors.
If your payroll is $500,000 annually, a 2% error factor equates to $10,000 in costs.
3 - Save on time theft.
Time theft, along with buddy punching, is one of the biggest unintentional costs of your business. The American Payroll Association found that 43% of hourly worked exaggerated their time worked during a shift.
Arriving late and clocking in as on time, punching out-late, or and buddy punching are a few examples of time theft. Time theft can add up to thousands of dollars annually if you aren't using an integrated system that allows for automated punch in rules, and then streamlines those hours to your payroll system.
Mistakes are made less when time tracking software is used to track employee hours! By automating payroll and streamlining hours into payroll allows data to be accurate. This way, there won't be any discrepancies between employee hours and employee pay.
Imagine this, a 100 employee establishment all punching out 5 minutes late at $20 an hour, this could cost you $60,000 annually on labor.
4 -Help you get organized.
Payroll automation will streamline all payroll data. Using an integrated and automated system, everything payroll related, for staff or management, can be easily accessible online and found in one place. Most payroll software providers allow employees easy online access items like their T4s, or pay stubs instantly, but some even automate stat holiday pay calculations, and help you calculate payroll taxes!
You’ll be able to centralize documents too! Legal and government documents can kept securely, and you'll no longer have to search for something in 10 different places, thanks to payroll automation software.
We hope this was helpful, and that you find payroll software that helps you streamline your business! For more on payroll software, check out our helpful guide.
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