The COVID-19 pandemic has forced many small businesses to re-evaluate their services and providers. Many companies are changing their business model to adapt to the new normal, while others are navigating new budgets, previous vendors going out of business, and other disruptions.
Selecting the right payroll service is an essential consideration for streamlining processes and keeping employees happy. Here are six things your payroll provider should do for your business.
Track and Update Compliance
Choose payroll software that receives regular updates to ensure that the information complies with ever-changing regulations. As a business owner, you rely on the experts to ensure you’re staying in compliance with IRS regulations. Choosing a payroll provider that understands the importance of regular updates and implements them frequently is essential.
Keeping software updated is relatively straightforward, thanks to cloud technology. The provider you choose should provide regular patches to ensure your system is accurate.
Save Time
Payroll shouldn’t be a long, drawn-out process that eats up the majority of a workday every two weeks. Choose a payroll software provider that saves you time by making the input process as simple as possible.
The two most time-consuming tasks in payroll tend to be data entry and running calculations. Find a payroll service provider that allows manual data entry alternatives, such as timesheet importing, to keep things simple. Having preset calculations and letting the system do the math for you can also save precious time.
Pay for Itself
Using simplified payroll software with support options helps you save money by handling payroll in-house. Many businesses outsource to a third-party provider as they lack the time or know-how to process payroll. Using the right payroll software can provide a simple middle-ground.
It’s also important to evaluate the opportunity cost when choosing a payroll software provider. Saving hundreds of hours each year that could be spent doing revenue-generating tasks is well worth the cost of payroll software.
Adapt to Flexible Work Models
The pandemic has triggered a paradigm shift in how many businesses operate. While remote work was already gaining popularity, some companies have decided to become fully remote rather than returning to an office environment. This overnight change has created a lot of complexity when figuring out communications and business processes.
Choose payroll software with cloud access so that you can get work done from anywhere. This is especially important if you have another team member who assists with payroll processing.
Furthermore, look for a program that allows different types of employees. By going remote, many businesses are exploring the opportunity of working with contractors. At the same time, many employees are re-evaluating their potential to become contractors for other companies.
Reduce Human Error
The simplification offered by high-quality payroll software should help reduce human error during the payroll process. Look for a system with checks in place to help flag data entry issues and mitigate the potential for errors.
Simplify Tax Season
Tax season is often a nightmare for small businesses. During this tumultuous time, companies have to process their own taxes while ensuring employees have what they need for their taxes.
Keep in mind that preparing for a simple tax season happens year-round. Payroll software that can handle 401k deductions and tax expense accounts can create a centralized platform that contributes to accuracy.
Look for payroll software that makes tax season as intuitive as possible, with easy to navigate processes and forms. Giving employees the tools they need to complete their annual taxes shouldn’t be an arduous process; having the right software in place makes a significant difference.
Getting the right payroll software in place can help your business adapt to the new normal and streamline processes in a post-pandemic world.
