As a business owner, you have to be smart about where your money is going and how you're budgeting your finances. Paying employees can be one of your largest business expenses, so it might seem counterintuitive to spent more money and purchase paperless payroll software to help you organize and process payroll. However, the ROI for online payroll services can far exceed the money you spend on the software.
Online payroll services can do more than help you financially. It can help you with time and accuracy, relieve the stress of filing payroll taxes, save paper and help the environment, and provide payment flexibility.
Here are our top four reasons to use a service to process your payroll online:
- Improves accuracy. If you're not using some sort of payroll processor, it's possible your payroll isn't 100 percent accurate. True, you can track your payroll with a spreadsheet or even by hand, and while these methods don't cost extra, it can cost you extra in terms of accuracy. Payroll software can help you double-check the amount of money you're distributing to employees and ensure you're not paying anyone too much or too little.
- Saves time. Doing payroll by hand can consume an enormous amount of time from you or your accountant's workday. In addition, tracking everyone's hours, pay rates, withholdings and benefits, as well as other aspects of payroll, can be overwhelming. Small business online payroll can help you process payroll more quickly and efficiently, saving you valuable time so you can get back to other important aspects of running your business.
- Saves money. Believe it or not, purchasing online payroll software can help you save money. Not only can it prevent you from overpaying employees, most online payroll services can help you pay and file payroll taxes. Since these services help you comply with federal and state rules, you don't have to worry about incurring penalties or fees if you forget to report a new employee or make a mistake calculating payroll taxes. In fact, many online payroll services offer guarantees in regard to payroll taxes: Many state that if mistakes are found, the company will pay the penalties, not you.
- Payment flexibility. Your employees are diverse, and, often, the ways they prefer to be paid are diverse as well. Online payroll software can help you meet employees' needs by providing various ways to pay them. Many services let you distribute funds to your workers via direct deposit or pay cards. Some also let you print checks at your business (though you'll have to buy specific paper for this), and some print and sign checks for you so you can quickly distribute checks to employees on payday.