Time is precious – and putting in extra hours to run payroll after a full workday can take its toll, especially if you’re dealing with spreadsheets and cutting checks by hand. You may even still be handling things that you didn't know could be automated.
Wouldn’t it be great to get some of that time back? Automation can be helpful if it isn't a nightmare to set up, if there are no errors, and if it's tackling everything it can be.
CSI's payroll department has offered quality service to small businesses for over a decade, so we know what business owners want to know about automating their payroll:
- What is manual payroll?
- What is automated payroll?
- What are the different levels of payroll automation and services?
What is Manual Payroll?
Running payroll manually requires more time and effort and is more susceptible to errors. That doesn't seem like a very good payoff, does it? So, what kinds of things are normally done when payroll is not automated?
- Tracking various things on spreadsheets, such as PTO
- Timekeeping and timecard notes
- Writing checks and handing them out to each employee
- Consulting IRS withholding charts
- Monitoring HR/HCM features, such as emergency contact information and leave requests
What is Automated Payroll?
Automated payroll is a way to simplify the process of paying your employees. You can remove time-consuming tasks and reduce human error . You're enter hours the way you want, and software calculates everything and generates reports.
When it comes to automation, there's old school automation that everybody already knows about, and then there's modern automation that we wish we saw more people taking advantage of.
Old School Automation
Old school automation is your parents' style of automation. It's generally been around for a decade or two, and most people are aware of these automated payroll features:
- Calculating checks (net pay and taxes)
- Processing direct deposit
- Filing taxes
- Calculating overtime rates
- Calculating tax withholdings
Modern Automation
Modern automation isn't necessarily whatever is brand new, but we feel that it isn't commonly known about or recognized for its value. These automated payroll features include:
- Timekeeping
- Making tax deposits
- Report access
- Employee self-service access (portals, electronic paystubs, W2s)
- Reporting retirement contributions
- PTO accrual tracking
- Tracking local mandates for sick and vacation time
- HR features monitored on an HCM
- Worker's compensation premium calculations payments
Levels of Payroll Automation & Services
If you’re considering switching to an automated payroll system, there are three main options to choose from that are guaranteed to make your life a little easier. Each comes with some advantages and disadvantages. The key is to choose the right payroll system for you and your small business.
1. Payroll Software
Payroll software is a popular option for businesses that are just starting out. There are good levels of automation involved. However, there comes a point when this work needs to be outsourced to prevent mistakes and to save time and money.
The cost of doing your own payroll with software is more than it seems. Someone at your business still needs to handle all of the data entry. If you hire a payroll specialist, the cost will be their salary and benefits. If you do it yourself, consider what your time is worth. If you generate a certain amount of revenue for your company by acting as the owner, you're better off doing that than doing payroll.
Plus, software is no longer just software; it's SAAS - software as a service. Gone are the days when you can purchase useful software and just, well, use it. You now need to purchase software and pay routine fees to "update" it and to continue using it.
2. National Payroll Providers
Large, national payroll providers offer a variety of payroll services depending on the size of your business. While they can help you automate the payroll process, some small business owners find themselves lost in the shuffle of poor customer service.
Online providers can lack a personal touch. There tends to be a lack of continuity and direct communication due to multiple points of contact for different services. This can be time-consuming for owners, as they feel the need to educate new points of contact about their business on a regular basis.
Not to mention, this lack of quality service means there is a lack of information being passed to you. How can you be sure that you're automating everything that you can be automating - or that your processes are even being done correctly? You don't have a dedicated specialist to keep an eye on your data for you.
3. Local Payroll Providers
Local payroll services, such as CSI Accounting & Payroll, focus on small businesses because we understand your challenges at a personal level.
Local firms typically assign one point of contact to clients for the long-term and don’t experience high employee turnover rates compared to the national firms. CSI's highly-praised, expert customer service helps you reach payroll automation's full potential.
Local payroll providers are also able to:
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Complete your payroll from start to finish (just like the national firms)
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Use secure, cloud-based portals to complete the process
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Provide a personalized approach, so you can pick up the phone and connect with someone to address any questions or concerns immediately
When you find the right payroll automation for your small business, it can help cut stress, save time, and make you and your employees happier. Let’s see if CSI Accounting & Payroll is the right fit for your small business. Click the image below to get a free payroll proposal!
Not ready to get a free quote? That's okay! Read more about how much a payroll service costs first:
