The 8 Most Important Ways For Payroll Software To Empower SMBs
Small businesses are the backbone of the US economy, creating over 65% of all jobs and contributing 44% of gross domestic product (GDP). However, small businesses face challenges that much larger businesses don’t have, especially when it comes to resources, time, and money.
Payroll software can enable small businesses to overcome these obstacles and achieve rapid growth by freeing up time, increasing profits, helping to reduce taxes and increasing efficiency within the business itself. same. The 10 most important ways payroll software can empower small businesses are listed below.
1) Provide accurate payroll
It’s not uncommon for companies to make payroll errors, even big ones. Every year, small businesses lose millions of dollars in tax deductions and FICA payments because they don’t have a good understanding of federal and state laws. Having a payroll management solution that gives you insight into your spending lets you know how much money is coming out and whether or not it is what is legally required. Accurate payroll management is essential to the growth of a business.
2) Ease of compliance
Ensuring compliance with payroll, taxes and government regulations is a daunting task. That’s why it’s beneficial to work with a payroll software solution that can simplify compliance management and give you more time to grow your business. The importance of compliance becomes even greater as your business grows. This is especially true if you plan to raise funds or someday go public.
3) Quick and easy data entry
Good payroll software will allow you to keep track of your data quickly and easily, so it’s a good idea to take a look at a program’s interface before deciding if it is right for you. Payroll software can be installed locally or hosted remotely, but whichever option you choose, look for one that offers easy data entry, especially when it comes to employee time tracking. Some programs can automatically track the times from their systems to yours. Others offer an API where you can follow yourself.
4) Quick updates on changes in laws and regulations
Don’t rely on your internal payroll employee to keep track of all of these changes or, worse yet, to interpret them. Make it easier for yourself by occasionally checking with payroll software vendors to see what they are adding or changing in their systems.
Not only will you make sure your employees are paying exactly what they should be, but you will also give yourself an update on any new tax laws or regulations that might affect business owners in your state. The more informed you are about what’s going on in your industry, state, and country, the better your chances of success.
5) Easily manage leave management
The best way to provide high levels of service to your customers is to make sure you always have employees available. But what happens when you have to take time off for vacation or illness? This can be a significant burden if your business does not have an established PTO policy in place. Making sure everyone has clear guidelines on how leave should be declared and approved will save you hours of wasted workdays.
6) Direct deposit
The IRS estimates that there are over 30 million small businesses in America. That’s why many of them probably don’t comply with federal income tax rules on the payment of wages, which require employers to pay employees by check or direct deposit. Failure to follow these rules can result in heavy fines or penalties.
Fortunately, software like UZIO can help employers automate payroll processes and make direct deposits mandatory for all employees, streamlining compliance processes while making it easier to keep track of employee information. This creates a significant competitive advantage for companies that adopt innovative technology solutions such as Zenefits’ business management software to run their business. Employers who fail to do so face a difficult choice: either pay a fine or risk losing good workers if they don’t pay on time.
7) Accurate tax calculation and declaration
As a business owner, you may have to pay taxes in multiple states. To make sure your business meets all state tax regulations, you need software that can accurately calculate and report sales tax for each state. An incorrect deposit could end up costing you money in penalties and fines. Several great services are available for small businesses that offer online payroll management, accounting, invoicing, and other financial services designed specifically for small businesses.
8) Simple installation and easy installation process
The most important thing to consider when choosing payroll software is the ease of setup and commissioning. Simple installation and configuration can make all the difference when it comes to selecting a program that will provide quick and easy access to you and your employees while respecting local laws. If you have any issues setting up or installing your payroll software, don’t hesitate to seek help from customer service representatives who are available 24/7.
Posted on November 11, 2021