It is no secret that employee related costs continue to climb. Everywhere, organizations are looking for ways to minimize the impact of double-digit premium increases and more effectively deal with the heightened complexity of HR compliance and administration.
The problem is particularly acute for small to mid-sized companies. A study done by Price Waterhouse Coopers (PWC) found that these companies spend on average $2,000 per employee per year to handle payroll, workforce administration, time & attendance, and health & welfare. In contrast, larger companies only spend $1,400 per employee to accomplish the same things.
The extra $600 per year spent by smaller organizations quickly adds up. You might call it the “smaller company penalty” – if they could tap into the economies of scale available to larger companies, some of this money could be returned to the business.
But even then, there are other HR expenses that are being incurred needlessly. While some costs are unavoidable, top executives are often surprised to find out how much of the HR budget is spent unnecessarily. No company sets out to waste HR dollars, but, without realizing it, most end up doing exactly that. PWC found that hidden costs account for over 50% of the cost of administering HR programs.
At yugopayments.com we have worked with hundreds of small to medium-sized companies, and have seen similar excessive costs. By finding and eliminating these unneeded expenses, HR can return money to the business.
With everything from bank transactions to groceries being handled by digital systems, it’s no wonder that an increasing number of companies are moving their payroll operations to an online format.
Many businesses conduct their payroll and HR processes in-house—in the form of full-fledged payroll and HR departments or small business owners attempting to do it on their own. Here’s why many of these in-house users are considering the switch to online:
1. It is significantly more time-efficient
After your online payroll system has been set up, you will find that you’re able to complete payroll within minutes—not hours and hours. The online format allows you to easily calculate pay based on hours, overtime and bonuses, while effortlessly keeping track of your business. This frees up your staff to focus on more important things like growing the business.
2. Online payroll minimizes the risk of human error
According to statistics from the IRS, 4 out of every 10 businesses will face an IRS penalty based on errors with payroll. With fewer opportunities to manually enter inaccurate information, online systems minimize the risks of mistakes. Also, the payroll application automatically does all the mathematical calculations for you.
3. Online payroll is much more affordable
Run the calculation: figure out how many man-hours you and your staff are devoting to managing your payroll. Translate that into dollars/Euros, i.e. salary. It’s easy to see how those expenses can multiply. Whoever is managing your payroll is probably wasting too much time on it. By making the switch from in-house, you and your staff can avoid spending hours on administrative tasks that are automated with an online payroll and HR system.
4. Good Staff - It provides more access to your staff
Whether it’s an employee looking for information on a previous paycheck or an executive trying to access a specific report, an online system makes it simple to find important records. Your reports and information can be stored online and securely accessed by other employees who need to review them.
5. You will be better equipped to meet deadlines
Online payroll systems help ensure that all deadlines for direct deposit, tax payments and other necessities are met on a timely basis. Unfortunately, this level of reliability is often lacking in in-house payroll systems. A missed deadline can be incredibly costly, potentially resulting in your company being targeted by the IRS and being forced to pay costly fines.
6. Be Green!
Reduce the amount of resources, materials and costs by utilizing our paperless payroll services. Our technology gives us the ability to provide our customers with the option of paperless payroll.
Our seamless services actually encourage and entise our clients and their staff mostly opt for the use of electronic payment options. Of course, we also provide direct deposits and payroll paycards available for our clients' employees at no additional cost to either the company or employees. Paper paycheck can optionally be printed directly from our online system at any desired location, such as your office.
The online approach to payroll processing has many advantages: time savings, meeting deadlines more easily, quick access to data and, of course, cost. With these factors combined, it’s clear that online payroll and HR is a great choice for any company.
yugopayments.com provide many more benefits that just the five listed here. Contact us to learn more about how your business can run more efficiently with our HR and payroll solutions.