Today, online payroll software is the payroll system of choice for small business owners. It’s affordable, easy-to-use, and can grow with your business.
These unique advantages make online payroll well-suited for many small business owners and not just the free trials. Instead of relying on your accountant or in-house accounting department, small business owners can free up time, save money, and reduce human error.
Accurately Pay Employees and Deduct Payroll Taxes With Online Payroll
The first and most important advantage of online payroll is being able to accurately pay your employees.
Both employees and employers can enter hours into the software. You provide payroll information about each employee – like their wage, salary, overtime rate, and other unique data. Then, the software calculates payroll taxes and deducts those from the paycheck.
Payroll taxes vary from state to state and payroll software is guaranteed to be accurate no matter where you are (and yes, payroll software is available in many countries outside the United States as well).
Online Payroll Has Multiple Payment Methods
You can pay employees via direct deposit or printed check. In fact, some payroll software programs let you print paychecks directly from your office. Others require you to receive paychecks through the mail. In any case, your employees can get paid as soon as possible.
Avoid The High Costs of An Accountant With Online Payroll
After you subscribe to online payroll software, there isn’t much need for your business to have an accountant. You can easily bundle and sync your payroll software with bookkeeping software like QuickBooks, for example, to totally manage your business’s finances.
Accountants aren’t cheap: whether you work with an accountant only during tax season or you have an accounting department at your small business, accounting can cost a lot of money.
Payroll software, on the other hand, costs just a fraction of what an accountant charges. Basic software starts at $9 per month, for example, and most small businesses won’t pay more than $30 to $60 per month for their payroll software.
Manage Your Business On-The-Go With Payroll Apps
A recent study showed that 40% of small businesses are reducing office space and encouraging employees to work from home. Online payroll software makes it easy to work remotely.
Most of today’s popular online payroll services come with apps. There are Android apps and iOS apps free to download.
If your small business and its employees are constantly “on the go” or working from home, then mobile payroll access can be a lifesaver. You can enter employee hours while you’re on a sales call, for example, or manage a payroll period while you’re on vacation.
Easy Bookkeeping With No Piles of Paystubs
With online payroll, it’s easy to check your business’s finances. From your internet browser, it takes just a few clicks to view how many employees you have, how much you’re paying each employee, and how much each employee earned at any payroll period over the last few years.
Online payroll software simplifies your bookkeeping process. You don’t need to keep a folder full of past paystubs lying around your office anymore.
Online Security and Regular Backups With Most Payroll Software
Using traditional payroll systems or accounting software can be problematic: if your hard drive crashes or computer becomes compromised, then you lose critical business data. That’s really bad.
With online payroll software, your data is stored in “the cloud”. The cloud is a secure remote server which can be accessed by any internet-connected device. Not only does cloud computing come with powerful security features, but it also comes with regular data backups.
If you accidentally delete an employee or mess up your payroll system, a backup restore is just a few clicks away. Viruses and hacking attacks are a regular problem for today’s businesses: online payroll helps you defend yourself against these problems.
Online Payroll Grows With Your Business
Your small business may have started with just one employee: you. As your business grew, you needed to expand office space, expand revenue streams, and expand your management staff.
One of the cool things about payroll software is that it grows with your business. It takes only a few minutes to add a new employee to the system. Most payroll software services don’t have limits on the number of employees you can add. You will, however, have to pay an additional fee per new employee.
Hassle-Free Tax Season
Tax season is a hectic time for small business owners. Running a business is busy enough, and during tax season, you need to run your business while figuring out taxes. Some businesses have it harder than others. Whether you hire 1099 contractors or W-2 employees, your online payroll software takes most of the hassle out of tax season.
Instead of stressing out during tax season, you receive reminders when forms all due. All taxes are accurately deducted from your employees during each paycheck and your payroll software fills forms with that data.
Everything is remarkably simple with online payroll software – even complicated taxes.