Trusted Blogs & Resources
Trusted Brand Reviews brings you expert insights to guide your payroll processes and human resource management. Discover practical strategies to optimize these systems through HRIS and software automation, freeing up time and resources and boosting productivity.
PayrollPayroll Compliance: Follow These 4 Tips to Avoid PenaltiesIs your company payroll compliant? If your business is adhering to all federal, state, and local rules and regulations pertaining to how employees are compensated for their work, your organization is running a tight ship. Still, it's critical to ensure that you're not unknowingly violating any laws. Being non-compliant could result in costly financial penalties that diminish your bottom line. 4 Tips to Avoid Penalties Here are four tips to avoid penalties for being non-compliant: 1. Utilize Payroll Software One of the best mechanisms to incorporate into your daily operations is by taking advantage of payroll software. Today's generation of payroll software includes various automated functions and additional features to simplify and streamline the entire payroll process. Payroll software can perform a broad array of automated tasks, including calculating hourly wages or salary, performing tax deductions, completing retroactive pay, and managing overtime or double-time. Some of the other features can also help out your office with tax filing, expense management, direct deposit, and employee self-service. » Is automated payroll software worth it? Compare manual vs automated payroll processes 2. Classify Employees Correctly The modern-day workplace has been drastically altered since the coronavirus pandemic, from more employees working from home to hosting Zoom meetings throughout the day. Therefore, it might be easy to misclassify employees, but this can result in complaints and probes by legal authorities. There are five primary types of employee classifications: Full-Time: These employees complete a predetermined number of hours each week and are generally paid on a salary basis, with other benefits, such as 401(k), healthcare coverage, and vacation pay.Part-Time: These employees will typically work fewer than 30 hours per week and will be paid hourly.Independent Contractor: These individuals will work as contract employees without being on the company's payroll. Compensation will depend on the project, the length of the contract, and the employer.Temporary: These employees are hired on a short-term basis, such as during the busy holiday shopping season or when a company is inundated with work. Intern: An internship is a professional short-term learning experience that may or may not include compensation. This position will offer training, skills building, and practical work experience. If a firm misclassifies its employees, the company might not pay the required taxes for the worker, causing the government to miss out on critical tax revenues. Employees might not receive the minimum employment standards, while independent contractors might be unable to make business expense deductions. » What is employee misclassification? Discover the consequences and how to avoid it 3. Keep to Deadlines Like individuals, small businesses are mandated to submit an annual tax return on April 15. Employment tax forms are due every quarter (April 30, October 31, and January 31), while other documents may be due throughout the year. That said, it's crucial to submit the relevant documents and make necessary payments on time. Otherwise, the standard penalty is 0.5 percent of the unpaid tax amount for each month the total remains unpaid. 4. Conduct Regular Audits Auditing is not the most beautiful word in the English language, but it's part of business. If anyone is suspected of not being tax compliant, an audit will be triggered. Because of this, a helpful pre-emptive strategy is to partake in regular internal audits. While it can be an exhausting process, there are many benefits to consider: Ensure compliance with government regulations and corporate policies.Identify internal inefficiencies and waste.Determine and promote the best practices for internal controls.Review various protocols in each department of the company.Detect or prevent fraud either internally or from an outside source.Facilitate better communications between employees that can improve business systems and protocols. » Can you prevent fraud in your business? Discover which internal controls you can implement Confirm Laws in Different Locations If your business operates in different states or even in other countries, it's imperative to understand labor and tax laws in other jurisdictions. Every location has its own set of rules, regulations, taxes, and laws that must be followed, otherwise, your company could be at risk of facing fines that can impact the bottom line or shut down the business altogether. There are two ways to handle this issue: Use your resources and ensure you're complying with the public guidelines. Hire a professional employer organization (PEO), a joint-employment entity that performs a wide range of employee administration functions, including payroll management and benefits processing, on behalf of businesses. » In-house payroll software vs outsourcing? Choose the best approach for your business Conclusion Tax laws change, labor regulations get updated, and some policies stay the same. Ultimately, it's crucial that companies stay up to date with laws, as they don't want to get blindsided by rules that are revised, leaving businesses vulnerable to audits and fines. Be it automated payroll software or hiring a tax expert, there are many tips to enable payroll compliance and avoid penalties.
PayrollPayroll Software: 7 Essential Features to Run Payroll Without a HitchRunning a is an essential part of operating a business with employees. Not only does it ensure that your staff is paid correctly and on time, but it also facilitates better compliance with federal, state, and local laws and regulations. One of the best ways to achieve effective payroll management is the integration and execution of payroll software as it can minimize the stress and help a firm become more organized. But how can your business run payroll without a hitch? » How do you choose the right payroll software? Discover whether large and small companies have different payroll requirements 1. Automated Processes While some businesses will try to manage their payroll infrastructure manually, an automated process is more efficient and effective as it can result in fewer errors and require less time. Plus, based on your preferences and the type of software, your payroll system can be customized, whether it's specific kinds of tax forms ahead of Tax Day or employee classification. » Still unsure whether you should use automated payroll? Here are 9 benefits automated payroll holds for your business 2. Reports For a human resources manager or a payroll analyst, producing a wide array of detailed reports is a crucial component of payroll management. Payroll software can generate multiple reports with their own sets of objectives, utility, and value. Remember, these are essential documents to verify tax liabilities, cross-check financial data, and insert important information (wages, hours worked, taxes withheld, employer tax contributions, and overtime accrued). 3. Integration Chances are that your company has installed several pieces of software, which is understandable in the digital age. At the same time, effective payroll software needs to be integrated with existing software, from accounting to human resources. By doing this, the office can streamline operations and prevent overlap and unnecessary mistakes. 4. Tax Management No matter what part of the country your business is situated in, companies of all sizes must be in compliance with tax and labor laws in all sorts of capacities. Payroll software ensures that your organization is up to par in this department, from tax deductions to withholding taxes. » How do you maintain tax compliance? Here are 4 tips for payroll compliance to avoid penalties 5. Employee Interaction While your payroll software will typically depend on the number of people in your workforce you must also consider your employees' interaction with the application. Today's generation of payroll software is both comprehensive and simple, but it's also tailored to companies' needs on the employee side of the equation. Therefore, extending access to an employee portal is critical, such as submitting leave requests, accessing pay slips, or inserting hours worked. 6. Security Payroll, whether entered digitally or manually, contains sensitive information. From employees' Social Security Numbers to corporate bank accounts, a company that falls victim to hacking or data breaches would be in significant trouble. With this in mind, businesses must ensure that they select payroll software with impeccable security features that can shield data from infiltrations by unscrupulous individuals. 7. Customizable Settings Every business possesses a unique set of payroll needs that must be addressed. What makes the plethora of payroll apps terrific is how customizable they can be in your day-to-day operations. The best kind of payroll software is one whereby the settings can be adjusted to suit your processes. Here are some examples: Customizable templates: If your firm has employees with different classifications (full-time, temp, contractor, etc.), it would be best not to have a uniform, one-size-fits-all payroll.Tax calculations: Automated payroll software can instantly calculate your company's tax situation, but it's imperative to input where you and your employees are situated.Benefits: When businesses hire new employees, they will typically extend benefits to these workers. But not everyone in the company will receive the same perks, so payroll software needs to be customized to address each employee's compensation package. Conclusion Payroll is both an important function and mandatory component of owning and operating a business. Because of its complex nature and the amount of work that usually goes into managing payroll, having the right software is vital. At the same time, while having payroll software is paramount, it's also crucial that it's reliable. Should your payroll be done poorly or fails to be in compliance with the government, you could face penalties and legal troubles and even be shut down by the authorities. Ultimately, payroll is not something you should take lightly. In the end, do your due diligence, invest in a comprehensive payroll system, and ensure it suits your company's needs. » Unsure which payroll software to use? Read TBR's payroll software reviews
PayrollLarge vs Small Business Payroll—How to Choose the Right SoftwarePayroll is a crucial component of any business—large or small. From complying with federal and state tax laws to ensuring employees are paid the right amount on time, managing payroll is not easy. This is why companies in every industry invest in payroll software for their day-to-day operations, realizing that even automated payroll processing can result in a more organized office space, better regulatory compliance, and more efficiency. But how do you select the best payroll software? » Do small businesses need payroll software? Discover the advantages payroll software offers How to Choose Payroll Software Of course, every business has its own suite of needs. There isn't a one-size-fits-all payroll software out there that can satisfy all companies on the planet. Indeed, the best payroll software will be one that addresses the specifics of each crevice of the organization, whether it's a reliable pay schedule or tax filing. So, what should you be looking for when you choose to adopt payroll software into your day-to-day business operations? Here are three things to consider: Required Range of Functionality Any business—large or small—should consider the range that payroll software possesses. For a lot of companies, it could come down to installing an automated payroll software system or utilizing a bare-bones program that offers basic functions to be performed manually. Of course, both have a series of advantages and disadvantages, so it would be necessary to weigh what is critical and what sits within your budget. Integration with Other Software Many offices already work with all types of different software, so would another one cause a headache? Not if you can integrate the payroll software with your other programs. Put simply, if you want to complement your current crop of software, it would be best to choose payroll software that you can integrate successfully into your workplace. Employees Another factor that you need to mull over when choosing payroll software is your staff. As you think about your employees in your decision-making, you need to consider the number of employees at the office and their employment status, and if they will benefit from having new software related to their paychecks. » Who is responsible for payroll? Discover whether responsibility lies with HR or finance How to Evaluate Payroll Software Here are five criteria to evaluate payroll software by: Price In today's economy, every business needs to tighten its belt. Investing in payroll software might be a costly decision, but it's a critical one. While many companies might only calculate the monthly fee of purchasing payroll software, it's also a good idea to factor in the costs per employee. In addition, depending on what payroll software your firm chooses, the price will also depend on how comprehensive or basic the packages are. Features When offices are in the market for payroll software, they make the mistake of thinking that some programs are only for managing, inserting, and analyzing payroll data. However, today's generation of payroll software includes a wide array of features and tools, whether it's Human Resources, labor regulations, or tax laws. In some cases, payroll software can serve as a one-stop shop for all payroll-related matters, from compliance to IRS filing. » What essential features should payroll software have? Here are 7 features to help you run payroll without a hitch Usability Not everyone at your company will be experts in Python or C++ programming languages. As a result, it's helpful to determine how user-friendly the software may be for employees. Scalability Can your payroll software grow with your company or will it be stagnant? Depending on what payroll software your company invests in, you might later discover that the program is limited in its functionality. While the software might have been useful when you were just starting out, eventually, you might outgrow your payroll software. The more your company increases in size and scope, the more adaptable and scalable your software must be. Security Unfortunately, data breaches and security infiltrations are more common than ever before. The last thing you want is to be the target of hackers. Payroll software contains extremely sensitive corporate and personal information. So, yes, you want to pour business funds into top-notch software that consists of exceptional security. However, it's also imperative to institute necessary security measures to protect this information, from two-tier authentication access to thorough passwords. Customer Service Lastly, are the payroll software and its maker known for impeccable customer service? Or is technical support something left to be desired? Since payroll is not something to take lightly, you want as much available support as possible, whether it is by telephone or online. Conclusion In the end, choosing the right payroll software for your large or small business depends on what the organization needs and if the software can result in saving both time and effort. By exploring the best tips for payroll processing, taking into account the workforce, and finding something that suits your budget, choosing the right software might be a decision-making endeavor that could pay dividends in the future. » Would you like to compare payroll software? View TBR's payroll software reviews
Hr functionThe Difference Between HRIS & ERP—A Comprehensive ExplanationOver the last few years, HR teams have been increasingly using software solutions to help them better manage the workspace. Namely, there are many types of these solutions, with HRIS (Human Resource Information Systems) and ERPs (Enterprise Resource Planning) being some of the most popular ones. Despite their popularity, there is still a lot of confusion surrounding the two types of systems. Many believe that they are one and the same, yet this couldn't be further from the truth. In reality, HRIS and ERP systems are quite different, albeit complementary, which is why it's important to understand the difference between these two types of solutions prior to choosing one. What Is HRIS? At its core, an HRIS is a system that helps organizations manage and store employee data. This data can range from contact information and addresses to payroll records and time-off requests. Additionally, an HRIS can also help with talent management and performance tracking. Thus, the main purpose of an HRIS is to make it easier for HR teams to access employee data, as well as use this data for improvements in the future. In doing so, an HRIS can save the organization time and money while also improving the overall efficiency of the HR team. Some of the main features of an HRIS solution include: Managing employee data from a single system. Simplifying hiring and onboarding. Ranking employees based on objective performance. Allowing employees to request sick days and vacations without contacting the HR team. » Need some expert tips for easier payroll processing? Learn about streamlined payroll processing and simpler small business payroll. What Is ERP? An ERP, on the other hand, is a much broader solution that helps organizations manage and automate multiple aspects of their business, from finance and accounting to inventory and manufacturing. While an HRIS focuses exclusively on HR data, an ERP system covers all areas of the business. As such, an ERP is a more comprehensive solution that can be used by all departments within an organization. Some of the main features of an ERP include: Integrating multiple pillars of a business. Unifying business operations. Offering a one-in-all solution for marketing, sales, and accounting. Real-time insight on important metrics like gross income and revenue. 5 Key Differences Between HRIS & ERP Now that we've looked at the main features of each type of system, let's take a more in-depth look at the key differences between HRIS and ERP: 1. Purpose The purpose of an HRIS solution is to allow the HR department to easily store and manage the company's information through the system. Usually, this type of system also features other HR activities like employee training, onboarding, and recruiting new talent. An ERP's purpose, on the other hand, is created to support all departments within an organization—not just the HR team. Namely, this is done by providing a system that can automate various business processes, which often include accounting, manufacturing, customer relationship management, and so on. 2. Functionality An HRIS is mainly used to store employee data and help the HR team with the basic functions. It is a solution that provides functions that can only be used by the HR department ERPs, however, allow businesses to unify different business operations, including marketing, finance management, accounting, and more. Contrary to HRIS, an ERP offers functions that can be used by accountants, marketing experts, and even managers. 3. Database The database offered by an HRIS solution is only used to store employee information. In contrast, an ERP database can be used to store customer data, supplier data, and inventory data. So, an ERP solution's database is more extensive, but it's also much more difficult to maintain and manage. 4. Specialized HR Functions Some HRIS solutions offer specialized functions for payroll management, attendance tracking, and managing employee benefits. They are solutions that are specifically tailored for the HR team. On the other hand, ERP solutions do not offer any specialized HR functions. » Struggling to cope with business payroll? Try automated payroll software instead. 5. Cost & Difficulty of Implementation HRIS solutions tend to be less expensive and easier to implement than ERP solutions. This is because HRIS systems are designed to meet the specific needs of the HR department. In contrast, ERPs are more comprehensive solutions that require a larger investment. Moreover, ERP solutions are generally more difficult to implement because they need to be customized to the specific needs of the organization. This process can be quite time-consuming and costly. Understanding the Needs of Your Organization Even though HRISs and ERPs are oftentimes mentioned in conjunction, the truth is that they offer different features to businesses. This is why it's important to understand the needs of your business and to adequately coordinate your priorities. So, if you think that your company would benefit from a solution that lessens the burden on the HR team, then you probably need HRIS. This solution will manage recruiting, onboarding, offboarding, and even compliance management for you. On the other hand, an ERP will help you manage multiple aspects of the business, not just human resources, but is far more difficult to maintain and not necessarily suitable for smaller businesses.
PayrollDo Small Businesses Need Payroll Software for Less Than 10 Employees?Running a small business with fewer than ten employees might not seem all that difficult—until you realize that you need to calculate, manage, and execute payroll on your own. But this does not have to be a solo crusade as the latest payroll software can ensure successful uninterrupted payroll management. However, is it really necessary for a tiny company with a handful of employees? Everything from taking care of benefits to paying employees on time (and by the right amount), payroll software offers various advantages for your company. Keep reading to learn more. Advantages of Payroll Software Over Manual Processing Payroll software offers a broad array of advantages for small businesses as today's programs can run your organization easier and smoother. Here are just four distinct advantages for any company—large, small, or in between: 1. Paying Employees Relying on payroll software to issue paychecks to employees can become simplified and more efficient. Since it is critical to pay your staff on time and the right amount, the suite of digital tools can take into account a wide range of aspects, including payment method (direct deposit or physical check) and payment schedule (weekly, bi-weekly, and monthly). This is perhaps the most important aspect of payroll compliance since businesses can face fines and endure legal disputes, particularly when jurisdictions have their own tax and labor laws. 2. Automating Processes Manually operating payroll can come with a lot of headaches and many mistakes. From misclassifying employees to filling out the wrong forms, many errors can arise by relying on human input for something as crucial as payroll. Therefore, automating processes associated with payroll can be of tremendous importance since it will reduce your mistakes. Plus, automated payroll can afford you more time and energy to concentrate on ways to boost revenue and grow your outfit. The manual vs automated payroll debate is a simple one to settle. 3. Tracking Benefits At first, it might be easy enough to track employees' overall compensation packages if you only need to do so for one or two employees. However, when your staff continues to increase in number, payroll software can better track a worker's plethora of benefits, be it health care coverage or 401(k) contributions. This makes it easier to manage when more workers join your team. It also helps when you are working with a financial institution or an insurance provider. 4. Calculating Tax Calculating the necessary tax contributions and deductions can be a time-consuming task. Indeed, there are many different types of contributions, deductions, and other tax and compliance scenarios that small business owners need to keep track of to ensure they are in compliance with federal, state, or local tax laws. In addition, employees will have their own tax structures as well: Employee The company is obligated to withhold income tax, Medicare, and Social Security from wages paid.Independent Contractor The small business is not required to withhold taxes. Temp Temporary workers usually work under 1,000 hours for your business, but it is up to you to file payroll taxes and send a W-2 form.Intern If the person participating in an internship is being paid, the employer is still required to deduct federal and state taxes from his or her paycheck. » Ready to get started? Choose from one of our selected payroll services. Plan for the Future It is true that a small business can calculate, manage, and execute payroll without software. However, without the use of software, it takes more time, effort, and organization to ensure that everyone is paid on time, the right taxes are deducted, and people are classified correctly. This leaves two drawbacks: time and the possibility of mistakes. This is especially true when the business and the number of employees grows, which can make manually managing payroll efficiently no longer a feasible policy. Indeed, no matter how intimate you are with figures and how organized you may be, when you have other employees to look after, mistakes are bound to happen! By incorporating payroll software into your day-to-day activities, small businesses can feel confident the right forms are filled out and filed, paychecks are executed, and benefits are doled out to staff.
PayrollSmall Business Payroll Made Easy: 7 Steps to Do It YourselfThe do-it-yourself (DIY) trend has made its way to small businesses, especially on the payroll processing front. But while manually completing, filing, and managing payroll information might cut operating costs and save you money, it is always best to consult a relevant professional with financial and legislative experience and knowledge of this arena. That said, with such heavy workloads and limited time, it's possible to have streamlined, simple payroll management without any headaches. Here are seven time-saving tips for doing it yourself. 1. Obtain an Employer Identification Number (EIN) An Employer Identification Number (EIN) is a nine-digit federal tax identification issued by the Internal Revenue Service (IRS) to report employment taxes. The EIN never expires and is never reissued to another company. The application process is also a straightforward task and consists of these steps: Determine your eligibility, including a valid taxpayer ID number and the business located in the United States.Gather required business information, such as the date the business was started, number of employees, first date wages, and closing month of the fiscal year.Apply for an EIN either online or by mail. 2. Determine Federal & State Business Requirements When launching and managing a small organization, owners must adhere to many federal and state business requirements. But what rules, regulations, licenses, taxes, and permits are mandated will be determined by a wide range of factors, namely: Business structure Are you a sole proprietor, corporation, Limited Liability Company, or partnership?Industry What a small business needs to operate correctly will be based on the type of industry. For example, the U.S. Department of Agriculture (USDA) will issue permits for firms specializing in agriculture. Business name Entrepreneurs must select a business name and learn if it violates another company's federally protected trademark. This will be done through the U.S. Patent and Trademark Office (USPTO).Intellectual property Should your small business possess any intellectual property, it would be best to register a copyright, patent, or trademark with the USPTO. 3. Employees vs. Independent Contractors: Understanding the Difference It's important to clarify whether your small business is hiring employees or working with independent contractors. The former is someone on a company's payroll and earns wages and benefits in exchange. The latter is a professional who maintains autonomy and flexibility without benefits and perks. It is crucial to understand the difference because misclassifying a worker can trigger fines and penalties, lead to legal disputes, and result in back taxes. 4. Decide on a Payroll Schedule A payroll schedule outlines how often employees receive their paychecks, be it weekly or monthly. This is usually one of small business owners' first steps when hiring employees. But how can a company determine the best payroll schedule? Here are some factors to think about: Are there state regulations that require a minimum number of times employees are paid in a month?How does business cash flow synchronize with the payroll schedule?Are job candidates willing to wait an entire month to receive a paycheck? 5. Calculate & Withhold Income Tax Small business owners must calculate the withholding tax to correctly determine how much money they should deduct from their employees' paychecks. They should then send it to the IRS to make the necessary tax payments. This is performed by assessing the employee's W-4 form, their gross pay for the pay period, and the agency's income withholding table. 6. Pay Payroll Tax A payroll tax is a levy imposed by federal or state governments to cover the cost of public programs, be it unemployment insurance or Medicare. Small business owners are mandated to pay all of the payroll taxes outlined by the government. Payroll taxes vary by government, so entrepreneurs should consult with a licensed tax professional if they are unsure. These are ordinary taxes small business owners can expect to pay: Federal Insurance Contribution Act (FICA) Tax: A two-part 15.3% tax that covers Social Security and Medicare.Federal Unemployment Tax Act (FUTA) Tax: A 6% levy on the first $7,000 employees make annually, paid only by employers.State Unemployment Tax Act (SUTA) Tax: A tax to cover a state's unemployment programs. (The state stipulates this rate.) Employers can then withhold the relevant federal payroll taxes from employees' wages and submit payments, other tax liabilities, and related forms and documents to the IRS. This is done using the Electronic Federal Tax Payment System (EFTPS). 7. File Employee W-2 & Tax Forms A W-2 form is a statement that small business owners must prepare and file for their employees at the end of each tax year. It summarizes an employee's total earnings, federal and state withholding tax, and Social Security or Medicare earnings. Every employee needs to receive a copy, and all forms must be sent electronically or by mail to the Social Security Administration (SSA). In addition, there is a treasure trove of other tax information you can send to the IRS. Here are some common forms to consider: Form 1040 (Also known as Schedule C): This form reports how much money your business earned or lost in a tax year.Form 8829 (Also known as Expenses for Business Use of Your Home): This form deducts eligible living costs, including rent and utilities, as business expenses.Form 4562: A document used to report the amortization or depreciation of property or automobile used for the business.Form 8283: A claim for a deduction on non-cash charitable gifts that a small business made exceeding $500.Form 7004: This form requests a deadline extension to file taxes. Again, these can be filed electronically or sent by mail. Help Is Available for Small Business Owners Manual payroll processing can be time-consuming for small business owners, and many are now considering alternatives to manual payroll systems. In a global marketplace of heightened competition, inflationary pressures, and advancing technologies, it can be challenging for entrepreneurs to take on the task of accounting. This can also result in errors since preparing and filing taxes can be challenging to complete. While every small business can manage and submit necessary tax information, other options exist, such as leveraging automated software solutions or outsourcing work to a professional and certified accountant. If you're interested in automation as an alternative, we recommend browsing these payroll software articles and reviews to get you started.
PayrollIn-House Payroll Software vs. Outsourcing: Choosing the Best Approach for Your BusinessPayroll processing is essential for employee satisfaction, ensuring both accurate and timely payments. There are many factors to consider when deciding whether to outsource your payroll or keep it in-house. Both models have pros and cons, so it's essential to evaluate your options carefully before making a decision. Let's dive deeper into these payroll solutions and uncover their benefits. In-House Payroll Software & Its Benefits In-house payroll refers to the process of managing employee payments within the boundaries of your company. This is usually done with the help of a software solution that automatically calculates employee compensation and delivers it to the HR team. Once you've set up the payroll software, it automatically computes all calculations for you. Streamlined payroll processes save time so the HR department can work on other projects. Here are a few of the main benefits that in-house payroll software offers: Flexibility In-house payroll systems offer more control and flexibility than outsourcing. In most cases, you can tailor the software to your company's specific needs and preferences. Additionally, you can decide when and how often employees are paid and which benefits they're entitled to without having to trust a third party with your information. Reliability Another advantage of in-house payroll software is that you control the entire process. This means you can be sure that your employees will be paid on time and that their personal information will be kept safe. Moreover, you won't have to worry about data breaches or other security issues, as all the information will be stored on your own servers. Easy Tax-Compliance In-house payroll systems can also help you comply with tax regulations more easily. This is because the software automatically calculates the correct amount of taxes that need to be withheld from each employee's paycheck. Additionally, the system can generate reports that help you keep track of your company's tax obligations. This way, you'll always keep abreast with the latest tax laws. Payroll Outsourcing & Its Benefits It's common to outsource payroll services in 2022. Payroll outsourcing refers to partnering with another company to manage your payroll responsibilities. Usually, this is a company consisting of financial experts that make the calculations and payments for you while keeping you up to date with the process. After you've partnered with a third party to manage this for you, you'll have to give them access to your company's data, like hourly rates, timesheets, tax deductions, and employee benefits. From there, they'll create a dedicated team to manage your payroll responsibilities. Let's take a look at the benefits of this payroll management model. Easy Setup and Low Maintenance Payroll outsourcing is often considered the simpler and more convenient option, especially for small businesses. This is because you won't have to invest in software or hire extra staff to manage the process. Instead, you can simply outsource the entire payroll function to a third-party provider. This way, you can focus on important aspects of running a business, like acquiring new clients and running marketing campaigns, while the provider takes care of employee payments. Timely Paid Taxes Another benefit of payroll outsourcing is that you can be sure that your taxes will be paid on time. In most cases, providers offer tax-filing services as part of their package. This means they will calculate the correct amount of taxes that need to be paid and file them with the appropriate authorities, ensuring that you remain tax-compliant. Accuracy When you outsource your payroll, you can be sure that all the calculations will be done correctly. This is because most providers use sophisticated software to calculate and track employee compensation. Additionally, they often have a team of experts who double-check the calculations before making payments. How to Select the Right Model for Your Business Outsourcing payroll can save you time and money, but it can also be less reliable than an in-house solution. On the other hand, in-house payroll software is oftentimes more complex and time-consuming to set up, but it offers much more control and flexibility. So, which is the best solution for your business? It depends on your specific needs and preferences, but oftentimes, an in-house payroll software solution is the better option. Both models offer a wealth of benefits, but in-house software never requires you to surrender your data to a third party. This is especially important, considering your company will be held accountable if a data breach happens and not the company you partnered with. What This Means for Your Company Although payroll outsourcing can be an excellent option, having an in-house software solution handling most of the difficult work for you might be better. With it, the HR and finance departments can abandon manual payroll operations, as they will be fully automated. As a result, personnel have more time available to focus on other important tasks like increasing productivity and growing the company. If you're considering investing in such software, check out our reviews of the best payroll software.
PayrollDo HR Functions Still Outsource Their Payroll Services in 2022?Business owners are well-aware that managing a company's payroll is no easy task. After getting the job done, employees expect to be adequately compensated. However, owners know that payroll management doesn't just refer to their salaries—it also consists of other inherent responsibilities, like handling employee benefits, paying taxes, managing withholdings and deposits, and more. This makes managing and tracking worker compensation very challenging. Outsourcing and Automated Payroll Solutions For this reason, more and more companies resort to outsourcing their payroll to third parties. In the last few years, business owners have started seeing the value of outsourcing their payroll responsibilities and not having to worry about the correct compensation of their employees. In addition to payroll outsourcing, some companies are also opting for automated payroll solutions. In fact, the rise of such solutions is starting to become a problem for manual payroll systems, as automated ones are often cheaper and more precise. Now, let's dive deeper into the world of managing payrolls and see what it's all about. Value of Payroll Outsourcing in 2022 Getting your company's payroll managed by a professional brings significant value to the table. Here are some of the main benefits: Outsourcing Saves You Time One of the main advantages of outsourcing payroll services is saving companies valuable time. In 2022, running a business consists of many aspects: managing sales, running marketing campaigns, keeping clients satisfied, and developing new products. With their payroll operations outsourced, business owners can have more time to focus on these aspects without worrying about whether total payments were calculated correctly by the end of the month. Outsourcing Is More Accurate Payroll outsourcing doesn't just bring value because it saves time—it also drastically reduces the risk of errors (i.e., improperly calculating employee compensation by the end of the month). In addition to keeping employees happy, this helps you remain tax-compliant, as the right payroll solution will also calculate taxes for you. Outsourcing Can Potentially Save You Money Outsourcing your payroll responsibilities can save you more money than it costs. Most business owners try to avoid having too many subscriptions, as it costs them large sums of money in the long run. However, an outsourced payroll solution can potentially cost you less than if you were to calculate the payroll yourself. Furthermore, having to face a penalty that results from making a mistake isn't something that any business owner should face, which is why outsourcing payrolls might save you money. Disadvantages Associated With Outsourcing Payroll Although payroll solutions have positively affected the way businesses handle spending, they aren't without their flaws. These are some of the potential disadvantages of outsourcing: Lack of Accountability The first disadvantage of outsourcing services is accountability. Even though you'll leave payroll management in the hands of professionals, you won't know if they've done a good job until it's too late. Moreover, the company you outsourced your payrolls to won't be held accountable for a mistake—your company will. Vulnerability Keep in mind that you're also putting the integrity of your data at risk when using the services of a third party. This is why it's crucial to establish confidentiality when you start outsourcing payrolls, as confidentiality threats could permanently stain your company's reputation. Ultimately, this makes your company vulnerable, so it's crucial to use a payroll solution with an impeccable reputation. High Costs Involved Lastly, it's worth noting that small to medium-sized businesses might not have any cost savings using an outsourced solution. The cost of payroll outsourcing can be quite high, and businesses that aren't in the top earning brackets might not be able to handle such costs. The reality is that outsourcing your payroll operations isn't cheap, so unless you've got a complex financial structure, chances are you won't save any money. Payroll Automation as an Alternative Solution It's evident that outsourcing payrolls has both advantages and disadvantages. While it may be a great decision for larger businesses with thousands of employees, the facts say that small to medium-sized businesses probably won't benefit from payroll outsourcing. This is precisely why automated payroll solutions for your designated payroll team have been drastically growing in popularity, as they offer the same benefits of payroll outsourcing with fewer shortfalls. Should you be interested in adopting a payroll software solution, look at our articles on the best HR automated software for small businesses and our reviews of payroll software for more information. Which Solution Is Best for 2022? As of 2022, having an automated payroll service is usually a better option than outsourcing your payroll. This is because a streamlined automated solution saves you time while being much more accurate and customizable. The pandemic has shown us that we need transparent payroll processes with remote access, which are essential to keep employees engaged and loyal.
Hr functionWhat Is HRIS and How Can It Benefit Your HR Function?Human resources information systems (HRIS) are primarily used to collect, store, and adequately manage employee data in a company. In the vast majority of cases, however, this system does more than work with employee data—it also serves as a system for managing new recruits, tracking performance, and steering the company in the right direction. With the basics out of the way, let's dive deeper into HRIS and uncover how it works. HRIS Explained An HRIS is a software solution that eliminates the need for manually managing human resources. A solution like this is often used to store and manage employee records, like their performance, history, and compensation. With technological advancements, HRIS solutions have become much more sophisticated, offering complex features like new talent acquisition, tracking efficiency, and keeping pace with new trends in the workplace. The main goal of a software solution like this is to help HR teams meet their company's strategic goals. With the right HRIS solution, companies have a clear overview of employees' skills and performance, helping them advance in their careers while driving efficiency in the workplace. Common HRIS Functions Most HRIS solutions offer the same basic functions, though additional features can be added to cater to a business's needs. These are the most common functions required by an HRIS solution: Attendance Tracking After the COVID-19 pandemic, tracking attendance became much more challenging. This is because many companies started to offer remote positions, so tracking attendance was no longer limited to swiping an employee card. If you're having difficulty managing attendance, it's advisable to look into the best software for employee time tracking to simplify the process. Applicant Tracking System (ATS) A good HRIS solution can help HR teams get a better overview of their applications. Using some of the best hiring and onboarding software apps will give you access to preliminary screening and even background checks. Benefits Administration HR managers are tasked with managing and tracking workers' compensation. However, employees' benefits aren't limited to their compensation alone. They could also include health insurance, gym memberships, and mileage reimbursements. Employee Self-Service More and more organizations are starting to benefit from their employees managing their requests without requiring direct supervision. The right HRIS software allows an employee to request a paid vacation or sick days without having to directly discuss the matter with the HR department. This lessens the burden on the HR department while simultaneously increasing employee satisfaction. Payroll It's no easy feat to issue paychecks when managing a large team of employees. With a suitable HRIS, you'll have a software-automated payroll process, ensuring that every hour of work is paid. Performance Management Many companies confuse attendance tracking with performance management, but the truth is that they're very different. For example, a frequently absent employee could, in fact, be more productive than an attendant one but be compensated less due to having fewer hours in the workplace. Having an HRIS solution helps the HR department distinguish this line, ensuring that well-performing employees are adequately compensated. Reporting & Analytics Managing reporting and analytics with HRIS software usually refers to automated HR reports on relevant employee data, like their performance or absence. Such a system can help the HR team make better decisions based on these reports. Succession Planning Sometimes, people leave the workplace for alternative employment, which is why having an available replacement is crucial. An HRIS can help your company find a replacement quickly if an employee leaves. Training Training is essential to steer a company in the right direction, especially regarding new talent. An HRIS solution often entails having a learning management system with featured e-learning and courses. Benefits of HRIS for Human Resource Managers These are the main benefits HR managers can expect from an HRIS solution. Increase in Productivity The main benefit of an HRIS is the increase in productivity it offers. A key example is streamlining payroll processes to save time. By automating everyday tasks and functions, HR departments can focus on more important tasks and enjoy improved productivity. Improvement of Operational Performance Not only will HRIS software improve productivity in the HR department, but it will also boost operational performance. If an HR team has better overviews and access to data, it can make better decisions for the company. Streamlined Compliance Management A successful HRIS ensures that all employee data is adequately managed and stored due to improved reporting and analytics. This can help you avoid any compliance issues. Data-Driven Decision-Making Another significant benefit of an HRIS solution is that it allows for data-driven, accurate decision-making. With all the data stored in one place, HR teams can make better decisions and develop new strategies based on facts and figures. Enhanced Employee Satisfaction HRIS software streamlines and automates many administrative operational processes. Employees are able to quickly and easily make requests, which fosters greater employee satisfaction. HRIS: Beneficial to All A strategic and successful HRIS solution offers substantial benefits to both the HR department and employees. By automating common tasks and processes, HR personnel can enjoy improved productivity and focus on more important job duties. Most importantly, they can focus on what really matters in the company—the people.