For many small businesses or start-up companies, payday is a huge source of stress and frustration – payroll is complicated, it takes time and can be confusing. You probably spend hours handling your monthly payroll, but you do not have to. By using payroll software you can save a huge amount of time and ease the monthly stress that comes with approaching payday. Here are some ways in which utilizing payroll software can make your life easier.
Ensure you accurately calculate your pay.
This applies to both a salary and owner’s draw – you want to make sure that your pay is correct. There are different ways to pay yourself depending on your entity type, your business plan, and your number years in operation. Payroll services can help you make sure everything is calculated correctly and prevent any mishaps that have to resolved at a later date.
You do not want to deal with the taxes on your own.
Figuring out all the tax responsibilities that apply in payroll can be a huge headache – payroll software does it automatically. Your taxes can be calculated and filed through the automatic system, taking it completely off your shoulders. And yes, payroll taxes still apply even if you are the only employee!
This applies when hiring contractors or additional employees. There are a huge number of rules that you will need to follow when bringing on additional help, far more than is reasonable for you to keep track of whilst trying to run a business. Specialized software can help keep on top of all these rules and requirements to prevent you from being penalized for not complying with the law.
Prevent payroll mistakes.
Mistakes in payroll can be extremely serious errors such as not paying employees correctly, breaching payroll rules and regulations, or losing track of important reports. Employees can sue you for mistakes in their salary such as the amount or the frequency of pay – you also need to take into account any accrued sick time or vacation. This can even cause you to lose your business license. Payroll software can help protect your business from wage complaints by automatically paying your employees and keeping records of each payment. Also, by using a centralized service like payroll software to fill out forms, you can keep them stored and sorted for whenever you might need them. Payroll mistakes could also trigger an audit which is never fun.
No more fear of audits.
Being audited can happen at any time and it is important to always be prepared. Using payroll software means you have all your records and reports available at the drop of a hat – no more frantically riffling through paperwork or losing track of important documents. Not only will the software reduce the occurrence of mistakes, which in turn will reduce the chance of a surprise audit, but it will also help store all the information you will need when you are.