Our sales team spends a lot of time talking with potential clients about online payroll in the cloud. There is this disconnect between payroll processing and cloud computing that business owners and managers cannot seem to get over, which is one of the things that prevents them from adopting a third-party payroll solution from a company like ours. Helping them overcome that disconnect is a matter of framing payroll processing this way: you can do it either manually or in the cloud; it is your choice.
Online payroll in the cloud is a solution that eliminates the need to learn how to do payroll manually. And trust us when we say there is a lot to the manual process. We have outlined that process below. Needless to say that eliminating manual payroll saves time, money, and resources. Going with a cloud solution from BenefitMall can actually pay for itself in a relatively short amount of time.
What It Takes to Do Manual Payroll
It is not unusual to find older payroll professionals who know how to do payroll manually. But manual payroll is quickly becoming a lost skill because it's no longer necessary in the digital age. Thanks to online payroll solutions, manual payroll is quickly aging into a thing of the past.
On the outside chance that you had to learn to do it manually, you know what manual payroll involves:
1. Collecting employee information on every worker.
2. Tracking time and attendance on every employee.
3. Calculating payroll at the conclusion of each pay period.
4. Calculating additional compensation over and above wages.
5. Calculating deductions including taxes and both post and pretax deductions.
6. Paying employees via check, direct deposit, cash, or other means.
7. Reporting and paying taxes on time.
Doing all of this manually is certainly possible. Payroll was a manual process long before the advent of computer technology. Still, manual payroll is a lot of work and something fraught with potential pitfalls. From time tracking errors to simple math calculations, there is plenty of room for making mistakes.
For the record, the potential for mistakes is greater in some industries than others. Payroll for construction is a very good example. Not only do construction companies have their own salaried and hourly workers, they also deal with contractors of all sorts. Construction payroll is so complex that handling it manually is not advised.
The Online Payroll Alternative
Handling payroll online and in the cloud is a much more accurate and efficient process. For starters, payroll personnel do not have to learn all the manual processes their predecessors learned. If they can enter data into a computer database, they can do the job.
Second, cloud-based payroll tools automate much of what used to be done manually. Consider all those deductions we previously mentioned. Payroll software can automatically calculate pre-tax deductions for things like health insurance. It can calculate federal and state taxes as well as post-tax deductions. Payroll personnel do not need to know how to do any of this because the software takes care of it all.
Lastly, the combination of automation and software calculations virtually eliminates any and all errors once data input has been completed. When mistakes do occur, they are almost always related to data entry. As such, they are very easily found and corrected.
As a business owner or manager, you may see a disconnect between payroll processing and cloud computing. We can help you overcome that disconnect by introducing you to online payroll solutions and the many benefits of making the transition.