If your business supports employees, then you automatically have reoccurring payroll obligations. As an employer it is your legal responsibility to provide a timely and accurate accounting of wages to your personnel. Payroll software packages can enhance your productivity by streamlining these procedures.
You are required to have some type of standardized payroll system, but the type you choose can vary depending on the scope and size of your organization. As your firm expands, the advantage of having a quality payroll software program will become self-evident; harnessing computer technology is an excellent way to manage the mundane, detail oriented tasks of calculating wages and benefits.
Managing payroll can be quite simple if all of your employees work in the same city and state. The task is especially straight forward if they all earn a salary and you do not have to calculate differentials. However, once you start calculating hourly rates, shift differentials, overtime, time-an-a-half, bonuses and other promotions, your required payroll procedures become more and more complex. Add tax laws from various states to the mix, as well as union contracts, comp time and other such issues, and your need for payroll software rapidly becomes evident.
A simple payroll software program downloaded to your computer can save you untold complications and hours of time. Payroll programs not only manage complex calculations quickly and efficiently, they also provide a data base and, when hooked up to a printer, can prepare your checks and payment vouchers as well. There are payroll software suites on the market that provide regular updates to their customers and keep them appraised of ever changing tax rates.
Your business will not remain static, and as it grows and evolves you will need a payroll software program capable to keep pace with the changes. Managing company records and payroll with a practical application like Excel spreadsheets for Windows makes sense for a small, single office company just starting out. It will, of course, also create paychecks right from your printer via the desktop.
However, once your business takes off, the payroll software will quickly become a necessity to keep you updated, on track, and handling employee wages and benefits for approved offices and locations.
Furthermore, if you did not start with a fully automated system, expanding your business locations will require the extra expense of hiring a separate payroll clerk to manage the intricate details of the new location, and then merge the two systems together.