Online payroll systems minimize human errors in calculating paychecks and help maintain compliance. They also enable employees to track their pay and reimbursement claims easily through self-service portals. Online payroll services include new-hire state reporting, automatic tax filing and more. Getting these services in place can improve employee morale and reduce turnover rates.
Flexibility
Payroll is a complex process with rules and regulations that are often complicated and vary by country. When you have a flexible online payroll solution, accounting professionals and HR teams can spend less time on repetitive tasks that can be automated and more hours focusing on business growth initiatives. Plus, improved accuracy reduces compliance risk and prevents costly penalties. Having the right online payroll software can also give you the flexibility to offer different compensation options like payroll cards and flexible pay so employees get paid quickly, accurately and on time. Combined with other employee-centric benefits, you can create a total rewards strategy that is attractive to candidates and retains talent, helping to reduce churn and turnover. Additionally, the latest update to online payroll allows you more flexibility when mapping payroll items to your chart of accounts – so you can now map expense and bonus accounts, flex spending, liabilities and clear bank accounts.
Ease of Use
The ease of use of online payroll makes a huge difference for businesses that need to reduce the time spent on accounting duties. For example, the average small business owner needs more expertise calculating employee tax withholdings or handling garnishments and benefits deductions. That’s why they often hire an accountant or outsource their payroll services to a payroll provider. When choosing an online payroll service, look for a platform that lets you easily input employees’ information (names, social security numbers and addresses), pay frequencies and payment methods (direct deposit, paper checks or prepaid debit cards). It should also let you set up compensation rates for hourly or salaried workers and manage other aspects of the payroll process like timesheet management, garnishment payments, PTO tracking and detailed reports. You should also find a payroll service that has dedicated customer support available after traditional business hours. If your new provider frequently lands you on hold or doesn’t respond, it may not be worth the hassle.
Security
Payroll data security isn’t just about preventing identity theft; it’s also an important element of employee trust. A payroll system that isn’t secure enough can send a message to employees that the company doesn’t care about their personal information. Fortunately, several measures can be taken to protect a business’s payroll from hacking and other security threats. First and foremost, all computer systems used to handle payroll should be password-protected, and all files should be stored in a secure location separate from other office computers and filing cabinets. Additionally, all payroll department employees should be given access to a private workspace, which is different from general employee and visitor traffic.
Additionally, all payroll and human resources employees should undergo extensive security training focusing on best practices for protecting sensitive data. Training on creating secure passwords, avoiding dubious links or email attachments, and spotting warning signs of phishing and vishing scams should all be part of this. Lastly, to keep outdated software from providing a security hole for hackers, all software must be updated regularly.
Integrations
Online payroll systems make it easier to minimize data entry errors by creating a single source of truth. This reduces the number of mistakes during manual entry and processing, saving HR and accounting departments time and money.
In addition, many online providers offer employee self-service portals to enable employees to access their pay stubs and tax documents anytime. This can improve transparency and communication between restaurant employees and management, fostering trust and loyalty. Ask potential suppliers about their pricing structure before switching to an online payroll provider. Some may charge a flat rate that includes all features, while others might have a base price with additional services available at an additional cost. Once you have a shortlist of potential providers, schedule a demo presentation to learn more about their products and services. This will allow you to compare features and functionality and determine which is right for your restaurant. If you plan on changing your payroll provider, it’s a good idea to do so at the end of a calendar year so you don’t have to transfer historical data manually.
Scalability
When considering online payroll, ensure your chosen provider can grow with your restaurant. You don’t want to have to change systems as your business grows, and you don’t want to overspend on a system that won’t meet your needs down the road. Online or cloud-based payroll software is hosted on the vendor’s servers and can be accessed from any web-enabled device. Vendors often offer mobile apps that enable employees to log in from their smartphones and tablets to access timesheets, salary information and more. Some vendors also provide complete HR suites that include functionality for personnel tracking, applicant management, talent management and scheduling in addition to payroll.
Ask your accountant or bookkeeper for recommendations when selecting an online payroll solution. Then, take some time to review features and pricing. It’s also a good idea to check how user-friendly the system is and what kind of support it offers. A good provider should have helpful resources through email, phone and live chat. Look for a simple, easy-to-use interface to make the transition smooth for you and your employees.
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