Who Can Benefit From a Payroll Solution?February 25, 2021 Blog Post
Discover the various benefits and features of a comprehensive payroll solution for your modern workforce.
A payroll solution is a software or a web-based platform designed to process payroll for an organization. Many payroll solutions do more than just payroll; they incorporate direct deposit, tax filings, reporting, timekeeping, and more.
Nearly every organization that adopts a payroll solution will see improvements in timeliness, accuracy, reporting, and recordkeeping in comparison to manual processes.
Payroll solutions for small businesses provide two primary benefits:
- They often express a lack of expertise in specialty areas outside of their own specialty; i.e., the owner/operator of a marketing or welding company may not feel comfortable developing a manual payroll process.
- They often need their resources to wear more than one hat, and manual reporting, processing, record-keeping, and data entry can pull valuable time away from strategy and sleeves-up work.
While many business owners look at a payroll solution as a part of their growth plan, they often find that they need to automate sooner than they expected.
Large businesses typically require a payroll solution because of the volume of workers, hours, and pay codes involved in their payroll. Manual input and review become less accurate when you have hundreds or even thousands of employees to process. Additionally, both record-keeping and reporting become near impossible without technology to automate and streamline.
Corporate payroll solutions help very large organizations manage payroll that spans multiple markets, accounting units, and employee statuses.
Accountants and bookkeepers
Payroll solutions for accountants allow them to manage payroll for a variety of clients, keeping records and reports separate; sharing their work with their clients; and automating the process for cost savings.
What are the different types of payroll solutions available?
There are several different types of payroll solutions:
- Time and attendance, used to track employee time for payroll purposes.
- Payroll-only software, which requires a timekeeping file or manual data entry and simply calculates and processes pay.
- Expense management, designed to manage the process of expense reporting, reimbursement, and record-keeping.
- Tax services, which automate the process of filing and paying payroll taxes.
- Garnishment management services, ensuring garnishment deductions are set up to deduct until the obligation has been met.
Some organizations need multiple solutions or modules while some organizations may need just one or two.
Is a payroll solution necessary for my company?
Any organization paying W-2 employees should consider evaluating payroll solutions and choosing the right one for their organization’s size, needs, and goals. There are three reasons you might evaluate the necessity for a payroll solution:
- You’re currently processing payroll manually and seeking to automate and streamline the process.
- You’re using a system or solution right now but haven’t evaluated your needs in the last three years.
- You’re using a system right now that no longer meets your needs.
We recommend that employers evaluate the efficiency of their payroll processes at least every three years (if not annually) to ensure they’re capturing the maximum benefit from technology available today.
How do payroll solutions work?
Payroll software takes data that you share with it – either through another module from the same provider, manually, or integrated from a timekeeping software – and calculates each employee’s pay. From there it calculates and withholds taxes and benefits premiums and creates an ACH file, which is sent to the bank for processing.
Depending on the capabilities of the software you select, you may also be able to file and pay payroll taxes, run reports, issue tax forms to employees, and maintain records using your payroll software.
Why Paylocity for comprehensive payroll solutions?
Because Paylocity offers a variety of modules, our payroll software meets the diverse and comprehensive needs in clients across a multitude of industries. Using a single provider for all of your software needs can dramatically reduce build costs, improve accessibility of support, and simplify the process of becoming proficient in your systems.
Paylocity offers expense management, time and attendance, direct deposit, and garnishment management to capture the needs of our diverse clientele. To learn more, request a free demo today!
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