Let’s be honest… 2020 was a crazy and unpredictable year for everyone. It has also affected and shaped the business world for years to come. For example, many businesses now see the cost effectiveness of having employees work remotely. As the corporate world continues to advance with the times, so must the industries that support the businesses day to day operations. Payroll services is one example of this. The industry of payroll services is also adapting and making huge strides to keep up with the ever evolving business world.
The Importance of Payroll Services
First, it is important to understand the huge benefit of using payroll services in your business. Payroll services offers your business and its employees an accurate and efficient way to manage pay and other benefits. Other benefits of payroll services include:
- Avoid Penalties: Having a payroll service to rely on gives you the confidence that your payroll is being processed correctly. If payroll taxes are not processed correctly and timely, your business may face penalties that are then owed on your annual taxes.
- The most common payroll penalty businesses face is when federal tax withholdings from an employees paycheck are not forwarded to the IRS as they should be.
- Efficiency and Convenience: Payroll services allow your employees easy access to their pay, tax, and benefit information which creates more bandwidth to preform other tasks and also boosts morale in the office.
The Future of Payroll Services
As stated previously, payroll services has to evolve with the ever changing corporate world in order to stay in demand. Here is what you can expect from payroll services in the future:
- Cloud Services: Using the cloud essentially means using internet based databases and resources which can be accessed from anywhere anytime. Businesses are slowly transitioning from software or hardware based programs and using cloud or internet based services instead. Cloud usage offers:
- Security: All cloud based applications use encryptions to keep sensitive data extremely secure and confidential. Many sites using the cloud also require a two step authentication which helps to deter hacking.
- Convenience: Using the cloud allows for 24/7 access at any location. It also allows employees to view and manage their pay or tax information electronically. This eliminates room for error and the need for manually input.
- Use of Artificial Intelligence: More and more Fortune 500 companies are using payroll services that utilize artificial intelligence. As artificial intelligence continues to be explored, the benefits are innumerable. Payroll services can benefit greatly from AI by offering “smart” technology to assist with the employees and the business.
- Chatbot: Many employee payroll interfaces offer a “chatbot” which allows you to chat with a robot that can answer and provide a variety of answers or information. For example you may have a question regarding time off and the chatbot can provide you with your time off information or steps to submit a time off request.
- Reporting: AI can offer insights on payroll reports and also red flag possible errors or missing information.
- Employee Resources: More and more companies are focusing on employee morale. Having happy employees translates to a more successful business. Payroll services can offer options to assist employee satisfaction.
- Financial Literacy: Employees have access to courses and resources which teach them to be financially stable and successful. Courses typically range from debt consolidation, to savings, to budget planning. These programs can also extend to the employees’ family so all members can reach financial success.
- Displayed Pay Scale: In the payroll interface, many companies are now offering a displayed pay scale. This means all employees can view the pay range for every job title and role within the company. This ensures pay equality in the workplace and can also help motivate employees to climb the corporate ladder.
- User Friendly Interface: Payroll services can offer employees a convenient cloud based interface where they can manage all of their pay and HR related information from work or at home such as:
- View paystubs prior to payday to confirm accuracy and allow for financial planning.
- View time off balances such as vacation, sick, or PTO and schedule time off requests.
- Update or view tax withholdings, direct deposits, or timesheets.
In addition to the above information, companies can send out HR notifications or updates through the database rather than via email to ensure they are seen and easy to locate for future reference. If your business offers a chatbot, it is typically found on the payroll system interface. FAQs and other resources are often available here as well.
Payroll services continues to implement a variety of exciting changes in the business world. In addition to payroll services being crucial to the success of a business, it also offers employees the power they need to feel confident in their workplace. After all, money is an employees biggest motivator. Offering the many benefits of payroll services will keep your employees inspired and your business thriving.