Which Payroll Method Works Best For You?
Have you ever considered all the possible ways that you could process your payroll? With the rapid advancement of technology today, there are plenty of options for your business when it comes to processing employee payroll. They can be classified into two broad categories: Manual or automated.
Most organisations today have progressed into the latter, though there remains a handful of companies who have yet to make the transition.
Here are some of the common methods of payroll processing:
We all have been through the horrifying experience of manual payroll calculations using excel spreadsheets. At one glance, it is just spreadsheet after spreadsheet filled with figures that seem to swim about the more you stare at it.
Processing payroll using excel is extremely tedious as you will have to manually input employees’ working hours or calculate overtime pay using excel formulas. One wrong entry could result in incorrect calculations of wages and more often than not, these errors prove difficult to detect amongst the abyss of numbers! Excel spreadsheets also fail to keep up with the constant changes in employment legislation.
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Yet, several small to medium business owners still stick this type of payroll processing method as it is less costly without the technological complications.
Outsourcing your payroll involves engaging an external company that handles your company’s payroll functions. Fully-outsourcing the payroll process has considerable benefits:
- You free up more time that will allow you to focus critical issues in your business.
- Your accounts are managed by the experts – hence you minimise costly payroll mistakes.
- Your provider (and not you) have to worry about deadlines for wages and taxes.
|Related: Subcontracting? Outline commitments with a Consultancy Agreement|
However, the downside of this payroll method is that the costs associated with engaging an external payroll processing company can be very high. Additionally, there is the risk of breach of privacy as sensitive information has to be released to an external party in order to process the payroll.
Payroll software uses technology to streamline and automate payroll processing. The most obvious benefit of using payroll software is that payroll calculations can be completed within a fraction of the time that is spent calculating manually.
Online payroll software such as Gpayroll provide the ability to automate payroll calculations, and takes care of post-payroll activities such as auto filing of CPF & taxes, salary disbursements and payslips generation. By adopting intelligent payroll software, you can enjoy the same benefits of payroll outsourcing without worrying about high cost.
A full-functional payroll software provider will likely allow you to select additional payroll functions as “add-ons”, on top of the core set of payroll functions. This provides organisations the flexibility in customising their payroll system.
The method of payroll processing chosen depends on a multitude of factors such as size of the business, the organisation’s technological capabilities, the complexity of the payroll and the time and resources invested. Typically, payroll software is an attractive option for most companies due to the flexibility and low costs.
This a guest contribution submitted by Gpayroll. The views expressed here are of the author’s, and Zegal may not necessarily subscribe to them. You, too, are invited to share your point of view. Learn more about guest blogging for Zegal here.
Gpayroll is an easy to use, self-run online payroll service that will redefine and revolutionize the payroll industry. Its intuitive and automated system will help business owners focus on their core business without the hassle of managing payroll. Follow on Facebook