Online Payroll: What's Stopping You?
Don't let these myths prevent you from enhancing your business.
You wouldn't use 20th-century technology and methods to treat your patients, so don't let your office's financial operations be governed by 20th-century payroll methods. Amid all of your other tasks, it's tempting to stick with what feels tried and true. But paperwork may be eating up more of your staff's precious time than you or even they realize. That's an expense that comes straight off your bottom line.
Online payroll is a fast, easy-to-use and cost-effective solution. Worried your employees will resist? A 2012 study by the American Payroll Association revealed 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 employees cited is in being paid electronically is the convenience of not having to cash checks.1
If you're still resisting, take a look at these myths that may be holding you back, and learn the truth about online payroll.
We're too busy. We can't afford the setup time.
Assuming you already use online banking for your practice, adding online payroll services is a snap. Depending on the number of employees you have, what time of year you start and the system you're switching from, you may be up and running in as little as an hour. After that, the time saving never stops. Considering the demands on the time of everyone in your practice, the question isn't, "Do we have time for this?" It's, "Do we have time not to?" If you're not already banking online, bring your financial management fully up to date by taking care of both at once.
We should wait until the end of the fiscal year.
You may sign up for online payroll any time of the year; there's no need to wait. If you've already paid wages to employees during that year, taking some time to enter year-to-date information into the new system will help make sure your calculations for withholding and tax payments are accurate. Always consult with your tax advisor to make sure your payroll deductions are accurate. If you currently use an outside payroll service, though, be sure to check for any termination requirements in the contract.
Online payroll won't be as secure.
Though paper may feel more solid, a 2013 study by the Association of Financial Professionals found 61 percent of organizations experienced actual or attempted fraud in 2012, and among those affected, 87 percent reported 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