Payroll can be confusing and time-consuming for many small business owners.
In 2023, the IRS levied billions in penalties for business owners who failed to comply with filing, reporting and tax code payment requirements.
Employers are legally required to pay an employee for the time they work. Plus, paying employees accurately and on time is an essential part of the employment construct. One study revealed that half of U.S. employees start searching for a new job after only the second mistake on their paycheck.
Read more about common payroll mistakes.
But is automating your small business payroll a good investment? Many small business owners offer a resounding “yes,” noting the time and trouble saved working with an online payroll service like SurePayroll® By Paychex.
7 Key Payroll Tasks
Processing payroll is more complex than simply writing a check; it’s also about complying with federal, state and local wage and hour and tax laws and regulations. This important administrative function includes multiple separate—yet related—tasks:
- Payroll processing
- Payroll-related reports
- Calculating and withholding taxes and deductions
- Filing and depositing federal, state, and local taxes
- New-hire reporting
- Preparing checks and direct deposits
- Calculating deductions , 401(k) contributions , insurance premiums, and more
Learn more about how to do payroll.
Effective payroll processing also depends on maintaining accurate employee financial records and timely distribution of paychecks.
Learning and keeping up with the specific labor, wage, or tax laws of each jurisdiction in which your employees reside or work can quickly become a burden.
Payroll automation can ease that burden by simplifying payroll processing tasks. That means more time for small business owners to care for their customers and grow their business, and freeing household employers to spend more time doing what they love.
How Payroll Automation Works
Payroll automation refers to the use of software to help you manage and process payroll. Automation can minimize the need for manual data entry, which can be both time-consuming and error prone.
Most online payroll services record and calculate employee paychecks, handle tax payments and deductions, and automate other payroll related tasks.
Some payroll services also offer a variety of HR and benefits, including 401(k) plans, worker’s compensation, health insurance, time and attendance solutions, health insurance and integrations with bookkeeping and accounting software.
Learn more about SurePayroll Plans & Pricing
9 Benefits of Payroll Automation
- Saves time on mundane or complex manual processes.
- Minimizes opportunities for errors associated with p processing payroll manually.
- Helps avoid potential fines for non-compliance with data security or tax obligations.
- Increases easy access to payroll records for faster reporting and analysis.
- Reduces paper file storage that costs money, takes longer to search through, and isn’t eco-friendly.
- Cuts costs of office supplies for paper, ink, mailing paychecks and pay slips.
- Keeps sensitive payroll data more secure with encryption and firewalls that control who can access payroll information instead of relying on hard copies that can be misplaced or mishandled.
- Helps small businesses offer competitive benefits like convenient employee self-service features.
- Can improve employee loyalty and confidence in business practices.
Is Online Payroll Processing Right for Your Small Business?
Small businesses face unique challenges when it comes to payroll. Unlike corporations, they often operate with limited budgets and staff. This means that efficiency is key—every penny counts and every minute matters.
Automated payroll solutions offer scalability and adaptability, which can support growth without additional overhead. Plus, user-friendly interfaces simplify the transition from a manual process for small teams.
For more than 25 years, small businesses, household employers and CPAs and accountants have count on SurePayroll for industry expertise, innovative solutions and a friendly, knowledgeable support team.
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