How Payroll Software Boosts Efficiency and Growth in Small Businesses
The payroll system is a vital component of every company’s business operation. Employees rely on the human resources department to pay them accurately and on time. However, for small business owners, it can be challenging to acquire comprehensive knowledge of payroll processing and then ensure that everything is done correctly.
This is where the importance of payroll processing software comes in. By utilizing a payroll system, small businesses can save time and money by minimizing the risk of human error. Consequently, it allows business owners to focus on other crucial aspects of their company’s growth and success.
When a business expands and hires additional employees, managing payroll quickly becomes a critical administrative task. Payroll management involves making sure that employees are paid on time and that all necessary taxes and reports are submitted to the relevant authorities. In this article we take a look at how payroll software boosts efficiency and growth in small businesses.
With payroll automation, businesses can streamline and standardize the time-consuming and error-prone tasks involved in processing employee salaries. Automation takes care of all the calculations, flags any anomalies, and resolves any issues, saving time and money from the outset.
Furthermore, storing payroll data in the cloud makes it accessible 24/7 with permissions controls in place to limit role-based access to authorized personnel. Automation digitizes every aspect of the payroll process, eliminating the need for paper or spreadsheet records. This not only minimizes the risk of data loss but also ensures the security of employee information.
Why is Payroll Software Significant?
In South Africa, payroll processing methods are not subject to any regulation. Nonetheless, it would be erroneous to assume that it’s a straightforward process.
Payroll in South Africa is governed by several laws, including:
- the Tax Act,
- The Unemployment Insurance Act
- The Basic Conditions of Employment Act,
- The Employment Equity Act.
- The Skills Development Levies Act, and
- The Compensation for Occupational Injuries and Diseases Act.
As the South African Revenue Service (SARS) tightens its grip on non-compliance, it is more important than ever for small businesses to have an accurate and streamlined payroll processes.
Registration, Reporting, and Payment Requirements with SARS:
- Pay as You Earn (PAYE) tax registration with SARS is mandatory for all businesses with at least one employee within the first 21 days of hiring.
- A Skills Development Levies (SDL) payment is required if expected payroll in the following twelve months is more than R500,000.
- The Unemployment Insurance Fund (UIF) can be done through e-filing, which is streamlined with the use of payroll software.
When it comes to purchasing payroll software, the provider you choose can greatly impact your business. It’s important for business owners to have a reliable supplier that provides constant reassurance. Opting for a provider that also offers extensive training would be beneficial. Regular training ensures that payroll employees maintain up-to-date knowledge on the company’s software and legislation changes.
PayDay is a software company that specialises in human resources, payroll, and time and attendance software. Through their PayDay Visual (Employee self-service) application, employees can access their payslips and IRP5s at their convenience and also submit leave requests and update basic information. PayDay’s software is versatile and caters to businesses of all sizes. Comprehensive training on all modules is also offered to ensure that you get the most out of the software.
With PayDay, it’s possible to include various forms of system support into the workplace. All PayDay projects, from inception to conclusion, are built on a foundation of change control, communication, and risk management.
How Payroll Software Impacts Small Business
Time and attendance systems south africa are typically included in modern payroll solutions. This feature allows employees to conveniently record their clock-in and clock-out times using biometric clock-in devices. The software then calculates the number of hours worked by each employee, whether they are on an hourly or salaried pay scale. This information is then used to determine employee pay at the end of each pay period.
In addition to providing time tracking capabilities, a good payroll solution should also allow for easy integration with a company’s existing time tracking software.
Some payroll companies even offer unified HR software that includes employee benefits management. This provides HR department with the ability to centrally manage the entire workforce, which saves time and improves efficiency. By utilizing unified HR software, both HR and payroll can be handled from one central hub. This software can also be utilized for hiring, on-boarding, and benefits management.
PayDay Software Systems is a market leader in this respect, offering fully integrated time and attendance, payroll and human capital software.