How Important is Payroll Technology?
With so many options available today, how do you choose a payroll technology that suits your business? Here are some considerations for implementing payroll software:
Cloud-based payroll systems
For example, cloud-based payroll systems can receive regular updates from their providers, and they can be used by multiple work sites and managers in different time zones. While some companies worry about the reliability of cloud-based payroll systems, they should know that they’re safer than on-premise data, which can be exposed to natural disasters or severe system crashes. Cloud payroll systems also invest in data protection and back-ups on a regular basis.
In addition to scalability, cloud-based payroll systems should be easy to use and provide prebuilt processes. New employees should be able to get up and running quickly with the system. It should also be flexible enough to adjust to the variety of payment structures and work roles in the organization. After all, the traditional 9-to-five salaried employees are soon to be joined by independent contractors, gig workers, and remote employees.
When you use payroll technology to process your employees’ paychecks, you’ll save money in two ways. First, payroll processing software does all the math for you. Second, you’ll avoid the paper trail that comes with writing checks by using direct deposit instead. And third, you’ll use less paper and envelopes. Finally, payroll technology will save you time by avoiding errors. It takes away the need for human oversight and allows you to process payrolls more efficiently.
Another way to save money with payroll technology is to benchmark your business against similar companies. Check out the features and pricing of different solutions before you choose one. Also, avoid securing a long-term contract with a payroll software company. These contracts can include expensive add-ons that may not be needed. Another way to save money is to implement a reporting dashboard or simple reports for payroll managers. Customized reports are also very useful when unexpected events happen.
Minimizing vendor costs
Payroll technology is an essential part of a company’s overall business strategy. But maximizing its benefits is not as simple as it may sound. There are several factors to consider when choosing a payroll system. For starters, a vendor’s services must be compatible with the existing SAP software. Otherwise, the vendor will have difficulty integrating the system with existing business processes. Moreover, a vendor’s technical support must be responsive to customer requirements.