The IRS reports that 40% of medium-sized and small businesses in the U.S. pay payroll fines each year. These penalties are mostly levied for delaying deposits of with holdings or filing errors. This news isn’t surprising because payroll calculation is a complicated task. You have to consider elements like workers’ salaries and wages, incentives and benefits, tax with holdings, and more.
Besides, each state stipulates tax regulations and you need to be careful to understand and include all details. As a business owner, you don’t want to pay payroll penalties at all. Therefore, you should invest in quality payroll software to smoothen and optimize your payroll processing. In this article, we detail the advances and trends that will determine the future of HR and payroll software solutions in the U.S .
Artificial Intelligence
In many sectors, AI (artificial intelligence) is making machines replace humans. This technology also helps payroll functions that were previously restricted to calculating personnel’s salaries, depositing the payments, and generating simple reports. AI is improving the way employees get paid. It can automatically group staff members and place them in the proper tax brackets.
AI is also helping in payroll data analysis and offers actionable insights that you can use to identify needless expenses, prepare an efficient budget, and plan the growth and success of your organization. AI-powered chatbots can answer employee queries and requests about payroll. Workers don’t need to contact the HR department but can get solutions from Prismhr.
Cloud Software
Cloud technology enables you to access payroll data from any place, anytime, on any internet-ready device. As work from home options are being widely used today, HR staff can remotely manage payroll tasks and need not go to the office. Employees and HR managers can easily access their payroll details in real-time, including PTO requests and pending leaves.
If you buy on-premise software, you’d need to shell out extra for data security. Cloud payroll software is cheaper as the vendor will take care of software updates and cybersecurity to protect your sensitive data. Plus, cloud software is scalable and can meet your future payroll needs too, eliminating your worries about having to replace your current system.
Gig Economy Demands
Employees can work from any place today which has led to an increase in the number of gig workers and freelancers. Thus, there is a shift from full-time traditional employment to a mixture of conventional and third-party personnel which has complicated the situation. Legacy platforms are not equipped to manage this dynamic and diverse workforce.
With complete payroll solutions, you can easily and efficiently manage the blend of gig workers and full-time staff. You can integrate your payroll tool with your firm’s project management system to monitor your workforce’s task progress and pay them on time after the project is completed.
Integration with HR Module
HR and payroll management are different but connected. You can get many benefits by integrating your HR and payroll software. An integrated platform can enable staff members and managers to access the needed data on one dashboard. It can thus allow your HR executives to efficiently manage employee information.
Some medium-sized and small businesses balk at the cost of buying HR technology. But HRIS tools are available at affordable rates today and their ROI can easily outweigh their price. HR software offers features like scheduling and PTO tracking and you can integrate your payroll solution with it to accurately track the worked hours of staff members to ensure accurate wage payments.
A single system can pool relevant data together to produce actionable insights. You can generate personalized reports that include data on the pay package of each employee.
Enhanced Data Security
Today, new laws require payroll solutions to comply with GDPR. This means stringent cybersecurity measures will protect the sensitive data you input into the software. Every business needs to protect its confidential staff information like addresses, wages, social security numbers, and bank account numbers.
Security advances such as dual authentication for the access of confidential information support traditional methods like security questions to safeguard your vital business and payroll data.
The Last Word
So, is your organization ready to embrace the latest payroll technology? It might seem a challenge at first, but once your HR professionals get the hang of it, your firm will swiftly see the advantages and benefits it offers in terms of improved efficiency and productivity.