Navigating Payroll Software; Your Journey to Optimized Business Growth

What’s the deal with Payroll Software?

In a perfect world of payroll administration, your small business would have an employee time & attendance system already in place and working flawlessly, with employees who always punched in and out correctly for each shift. This system feeds directly into your payroll system, which would only require you to review hours, pull them into your system, double check that all looked well, and then post payroll and send deposits. 

If you have ever processed payroll without an optimized system or streamlined solution, you know how perfectly unrealistic completing all the various tasks in 5-30 minutes is. From processing garnishments payments and submitting tax filings, to chasing down missed breaks and meals, answering questions, and correcting over/under payments when time is misreported, and much more. There is far more time spent behind the scenes than simply pushing a button to process payroll.  

How long does it take to process payroll? 

To provide a more realistic overview, experts have weighed in on what payroll experts do (and how long each task takes) when processing payroll. Keep in mind the following time estimates are based on how long it takes an experienced, certified payroll manager to do each task, not an inexperienced employee who would need much more time to thoroughly read through the paperwork and understand each task, know the laws, and be familiar with your software.

On average companies that process payroll without the use of a payroll software spend around 26-32 Hours per month handling all aspects of the payroll process. Among the myriad challenges of payroll administration is the need for accurate and efficient handling of contract workers’ invoicing. A reliable contractor payment solution can streamline this process by ensuring timely and correct payments, aligning seamlessly with your existing systems to reduce errors and save precious hours spent on administration.

Other complexities to processing payroll 

Each state has payroll laws that require workers to be paid within specific timeframes for different scenarios, such as the end of a pay period or an employee termination. And for companies with employees who live in one state and work in another (for example, someone living in Jersey City but working in New York City), you will need to be familiar with reciprocity agreements that define how taxes must be withheld. Any errors will be met with fines and penalties.  

Overwhelmed with processing payroll? 

If this sounds overwhelming, you’re not alone. In a survey of small business owners who calculated payroll themselves, “49% said the process was frustrating, 47% said it was complicated, 44% said it was confusing, and 33% said they were uncomfortable with the process.” The survey goes on to say that diverse labor laws across states and cities further complicated the process, meaning companies in multiple locations are much more of an administrative nightmare.  

Benefits of outsourcing payroll 

Outsourcing your payroll and other HR administration tasks to EarnHCMl not only relieves you of administrative burdens to give you peace of mind, but also provides your employees with 24/7 access to their payroll and personal data. And if your team are unsure how to navigate the system, they can always contact their EarnHCM expert Payroll & HR Specialist for help. 

To learn more about how EarnHCM and how Earnpayroll can drastically reduce your time spent on payroll, save you money, and ensure your compliance for payroll taxes, and reporting, book a free consultation today.