If you’re an employer, then you know managing payroll can be a headache. It takes a great deal of time to track the total hours worked by employees, update employee profiles, generate pay slips every month, and stay up-to-date with tax preparation and compliance.
How can you make these processes more efficient?
You guessed right — by having a payroll management system in place!
There are many reasons payroll management is important to a business. First and foremost, it ensures that employees are paid correctly and on time. This is not only important for employee motivation but also for compliance with labor laws.
Additionally, good payroll management software saves time and ensures that employee-sensitive data doesn’t fall into the wrong hands. In this article, we’ll explain the importance of having a robust payroll management platform and why Fingercheck’s solution is perfect for you. If you’re ready to get started today, sign up now.
What is payroll management?
Payroll management is the process of compensating workers for the services they provide. It’s how you pay your employees. Payroll management includes determining billable hours, paying employees, withholding taxes, and keeping up with the relevant financial documentation for your business.
A payroll management system provides a systematic way for employers to manage the payroll process — pay wages, remit employment taxes to the government, generate pay stubs, etc.
The importance of a payroll management system
A payroll management system is critical to the success of any business. No matter who’s responsible for payroll accounting, there are many benefits to using a payroll system. Here are some reasons why your business needs a payroll management platform.
1. Boost employees’ morale
A manual payroll system might be a red flag when it comes to winning employees’ trust. Such systems are often characterized by errors and late payments. And if payroll is late at any stage, employees may begin to doubt the company’s financial stability and honesty.
Let’s face it: If employees believe their employment in the company is insecure, they may lose morale and even start looking for jobs elsewhere. A robust payroll management platform eliminates all of these problems by allowing you to make transfers correctly and on time.
Robust payroll management platforms like Payroll by Fingercheck provide on-demand pay that allows your employees to access their earned wages whenever needed. This way, you can make any day a payday — a critical step to boosting employees’ morale and productivity.
2. Reduce errors
In the 2020-21 fiscal year, the IRS collected nearly $7 billion in penalties for errors that businesses made on their employment taxes.
Manual processes are prone to errors that can lead to miscalculation of taxes, omission of important taxable items, inputting of incorrect information, etc. These mistakes come at a cost to the business that makes the errors. Investing in payroll management software is crucial as it helps organizations minimize payroll processing and management errors.
3. Save time
With payroll management software, everything is done in real-time with no human intervention. The process is quick and efficient, saving time for everyone in your company. As a result, countless hours are saved, allowing the business owners or HR team to focus on other important business areas.
4. Ensure compliance
Some payroll service providers can alert employers about tax or employment legislation changes that may impact their businesses. Payroll management systems also help keep employee payroll data safe in compliance with the law.
How Fingercheck can help
Payroll by Fingercheck automates the payroll process to eliminate errors, save time and ensure compliance with the regulatory authority. Your payroll data is safe and easily available with point-and-click ease.
Fingercheck also provides Pay On-Demand services, allowing you to pay your employees now for wages they’ve already earned. Your employees no longer have to wait for scheduled paychecks. Pay On-Demand pay allows them to access their wages anytime, which can come in handy in the event of an emergency or unexpected expense. And we can cover the payment, so you don’t have to worry about the cash ahead of your normal payroll run.
Ready to get started? Sign up now.