5 Reasons Your Small Business Needs Payroll Software
You only have a couple of employees, why would you ever need payroll software? It would cost you money, but wouldn’t really add any value to your company, right? Well, let me ask you a question:
How long does it take you to run payroll right now?
If the answer is anything longer than 5 minutes, then keep reading.
1. Pay Your Employees via Direct Deposit
If you’re not currently using payroll software, chances are that you’re writing paper checks for your employees. With mobile banking, your employees can take a picture of that check and deposit it into their accounts pretty quickly. Not too big of a deal, but a minor inconvenience to your employees.
But, what happens if they’re on vacation on payday? Your employees still have to pay bills, even if they’re at the beach for a few days.
Payroll software allows you to deposit your employees’ paychecks directly into their bank accounts. So, there’s no more writing the checks by hand or worrying about whether you have enough checks left. You won’t have to worry about not having ink in the printer either because you can just email their paystubs.
The best part? Your employees will be happy because they’ll know their paychecks will always be in their bank account on payday.
2. Automatically Calculate Tax Withholdings
How are you calculating your employees’ withholdings right now? Are you trying to make sense of complicated formulas? It can take a long time to figure out every employee’s withholding amounts.
With a payroll system, you won’t have to deal with any of that math again. Instead, you’ll choose each employee’s filing status, their allowances, and any additional withholding. The program will do all the calculations for you.
Then, if an employee changes their allowances or starts contributing to a 401(k), you won’t have to redo all that work. You’ll just update their profile in the payroll program and be good to go.
3. Don’t Worry about Missing an Important Tax Update
Tax rates change annually, and sometimes states change their rates during the year. It’s a lot to keep track of. And, if you miss something, you and your employees could be in some trouble with the IRS. Nobody wants that!
Payroll software will update tax rates anytime something changes, so you won’t have to worry about missing anything.
4. Track Time and Attendance
You want to make sure that your employees are getting paid for the time they work. If you choose a payroll program that includes a timeclock, you won’t have to add up their hours (and hope you added everything correctly).
Instead, their hours will pull in automatically every time you run payroll. You’ll also be able to see if anyone is habitually late, regularly absent, or working unneeded overtime.
5. Save Time
You’re growing your business. You want to focus on activities that can bring in revenue – you don’t want to be spending hours and hours running payroll. With payroll software, you’ll only spend a few minutes running payroll because all you do is push a few buttons and you’re done.
Are You Ready to Move to a Payroll Program?
Are you ready to stop spending time on running payroll so you can spend more time growing your business?