Since the days of typing W-2 forms on a typewriter, technology has advanced quite a bit. What used to take days now only takes minutes! With the help of technology, businesses can now streamline their payroll, improve accuracy, file taxes more easily and keep employees happy. Here are some major ways payroll has advanced with technology to help employers with payroll processing.
Employee portals have emerged as a timesaving human resource function. Employee portals allow employees to log in and change personal information themselves. These “self-service” portals use password-protected security to keep information safe.
Printing paper checks is costly, with the purchase of check paper, special ink, envelopes and more. And then there is the time-consuming process of distributing the checks. Replacing paper checks with direct deposit can reduce all of this time and cost. With direct deposit, employee pay gets deposited automatically into their bank account, where it is available immediately. No more trips to the bank or lost paychecks. Direct deposit also keeps employees happy by allowing them to deposit a portion of their pay into other savings accounts.
Labor Cost Tracking
Some payroll programs allow you to attribute time in a variety of ways, which allows you to better analyze pay data and trends. Examples of ways employers may want to track labor are by department, profit center, or project. By tracking labor in this way, employers gain the ability to go back and analyze the information, which can help them make smart financial decisions as time goes on.
Online W-2 Accessibility
Generating and submitting W-2s can be a challenging enough job in itself. What happens after W-2s have been generated and submitted? Sometimes employees can request W-2 forms years after the fact. It then becomes the employer’s job to track down the correct W-2 and provide it to the employee. Some payroll systems solve this problem by offering employers to store W-2 information online (with password protected security), accessible with a password that can be passed on to the requesting employee.
Electronic Tax Filing
Filing yearly and quarterly taxes is a requirement for employers. Instead of opting to print those forms on plain paper that can be time-consuming and costly, electronic tax filing can be used in some payroll software programs. Filing electronic eliminates several steps required when W-2s are printed, and it can offer significant time savings. Though it can be hard to try new methods, electronic tax filing is so convenient that most businesses wonder why they hadn’t started doing is sooner.
All of these advances in technology can offer businesses ways to save time and money associated with payroll processing (Source: http://redwingsoftware.com/). Ask your payroll representative about how you can implement them into your system.