In the evolving landscape of business operations, the transition from a traditional to an automated payroll processor stands out as a pivotal change. With “Payroll Processor” technology, businesses are revolutionizing the way they manage employee compensation, steering clear of the cumbersome manual processes that once dominated the field.

This leap towards automation not only streamlines payroll tasks but also significantly enhances accuracy and compliance, making it an essential tool for modern enterprises.

Embracing the Shift: Why a Payroll Processor Matters

Change is hard. That’s why some of us still have newspapers delivered to our homes…or still use a landline…or still watch “Grey’s Anatomy.” But change is also inevitable, and that’s usually a good thing.

Consider payroll processing. How many companies continued to use an abacus once calculators became available? Not many, right? And yet today, many businesses still use a manual system to pay their employees instead of opting for automated payroll processors.

We all know how complex and time-consuming payroll can be—especially in today’s remote era. In the last few years, there has been a big jump to using cloud-based payroll solutions for a more efficient payroll experience, but there are still the holdouts. Are you one of them?

A Closer Look at the Numbers

Let’s take a look at some numbers (You manage payroll, you like numbers, right?) to demonstrate why switching to payroll automation is a good business move!

  1. Automation can reduce payroll error rates by nearly 67%.
    if you’re manually entering data to and from siloed platforms, mistakes are bound to happen, leading to pay miscalculations, incomplete records, potential fines, not to mention some very unhappy employees. Automated payroll processing significantly minimizes the risk of errors, using calculation software that ensures payroll accuracy and efficiency.
  2. Penalties for wage and hour violations can reach $10,000.
    Let’s talk compliance. If you accidentally or willfully violate the wage and hour laws of the Fair Labor Standards Act, you can get hit with major fines. This is why it’s vital that you stay on top of all local, state and federal rules and regulations (for labor and taxes). That’s easier said than done as laws can frequently change. Fortunately, an automated payroll system features regulatory compliance features that are constantly updated.
  3. Automation can reduce payroll processing costs by 80%
    HR managers have enough roles and responsibilities without having to deal with all the number-crunching, time calculations and other tasks required to accurately pay your employees. Automated systems, such as Accu Data’s payroll solution, are fully integrated, bringing together time and attendance, benefits, PTO and more, while also producing real-time reports for HR, payroll and finance. This saves companies hundreds of hours and thousands of dollars.
  4. 61% of SMBs Were Hit by a Successful Cyberattack in 2023.
    Cyberattacks against small businesses have been on the rise for several years and payroll data is loaded with information hackers are after, from Social Security Numbers to bank information to home addresses. An automated system features encryption protocols and other data security measures to safeguard confidential information, protecting your staff and your business.

Choosing Your Payroll Processor: Factors to Consider

For companies looking to bring on a professional payroll provider, there are several options out there. It’s important to weigh the costs and services of each before making a decision. There are, however, certain must-have features they should provide, which we addressed in an earlier blog.

Related Reading: Six Things to Look for When Selecting a Payroll Service Provider.

Want to learn more? Contact us today for a free consultation and to discover how our automated, intuitive and fully integrated software will make your payroll processing more efficient, accurate and simple!