Small Business
Business INSIGHTS e-News for Professional Services
Advantages of Online Payroll

Enhance and simplify your business with up-to-date technology.

Before you spend another minute diverting your attention away from business to tend to the time-consuming task of managing your firm's payroll, take a moment to consider how technology can help. By switching to an online payroll system, you can get organized and alleviate the headache that comes with a traditional payroll system. It's a fast, easy and cost-effective method--one that your employees will most likely embrace. A 2012 study by the American Payroll Association revealed that 76 percent of employees would rather view their pay stubs electronically than on paper. Another 15 percent said they would be open to the idea, and just 9 percent would resist it. One of the advantages cited by employees is the convenience of not having to cash checks.1

Keep the following benefits in mind as you consider switching to an online payroll system:

Save Time Starting Now

Assuming you're already taking advantage of online banking technology for your firm, adding online payroll services is really quite simple. Once you're set up, you'll be able to process your payroll online from start to finish in much less time than it takes to do manually, and often at a lower cost than traditional payroll service providers. You'll also have access to payroll information through a web interface, even on smartphones and tablets, so you can conduct business anywhere there's an Internet connection.

Payday Made Simple

If you're hesitant about learning yet another new software program, there's little to intimidate you. Many online payroll systems are easy to use and maintain. Often, the process requires you to access your account online, enter the hours for each employee, and review and approve the numbers. Then, with a few clicks, your employees get paid. If your firm uses accounting software like QuickBooks or Quicken, know that many online payroll systems are compatible with those programs, which makes organizing your finances that much easier. And if you ever have a question or need help, online payroll providers offer reliable customer support--which is not something you can get from a checkbook.

Secure Service with Direct Deposit

Online payroll systems traditionally offer multiple ways to pay employees: via direct deposit, printed paper checks or hand-written checks. While it's nice to have options, it would benefit you to choose direct deposit. Consider this: A 2013 study by the Association of Financial Professionals found that 61 percent of organizations experienced actual or attempted fraud in 2012, and that among those affected, 87 percent reported that paper checks were the target.2

The National Federation of Independent Business identifies direct deposit as one of its seven suggested ways to prevent payroll fraud.3 With online payroll, information is securely entered, transmitted and stored. And, by encouraging your staff to choose direct deposit, you can eliminate the single most vulnerable link in the payment chain: the paper check.

 

1 "Getting Paid in America" 2012. American Payroll Association. http://www.prnewswire.com/news-releases/employees-embrace-online-paycheck-tools-payroll-cards-170337956.html
2 "2013 AFP Payments Fraud and Control Survey" Sec 1: 32. http://www.afponline.org/fraud/
3 "7 Steps to Preventing Payroll Fraud," by the National Federation of Independent Business. http://www.nfib.com/business-resources/business-resources-item?cmsid=57312

 


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