Why Using Traditional Payroll Systems Is Not a Good Idea Having a company means that you need to ensure everyone working for you is going to be paid on time, but if you use a manual payroll system, then you know very well just how much trouble this can bring. As a business owner you sure had your share of angry employees who were upset on your payroll department and because of that, you need to upgrade it as soon as possible. No one says that using a manual payroll department is not great, but there are some cons to them and we will talk about them below. Outsource/External An external or an outsourced payroll system is used when employers choose to assign the bulk of their payroll tasks to payroll suppliers. If you don't know too much about the duties of a payroll professional, they include 401k administration (rarely), tax filings and payroll processing. There are a lot of companies out there that choose to outsource their payroll and that is because it's quite inexpensive and at the same time, they don't have to worry about payroll processing burdens. However, there is a downside and that is the inability of getting in touch with a payroll clerk in a very urgent situation. Since in most cases payroll clerks will work from home, he will need to courier the stubs or paychecks to the employer. If there are any direct deposits or paycheck discrepancies and the payroll clerk is understaffed or has too many clients, you will find it a bit hard to get a resolution in a timely manner. On top of that, if any tax errors are made by the payroll clerk, then you as a company will be fined by the government. In-House Computerized It seems that there are many employers using an in-house computerized payroll system because such software is usually affordable and after purchasing it, the employer only needs to hire someone who knows how to use it. However, there is a disadvantage with this type of approach for the employer, since he will need to pay the payroll clerk a salary with benefits; comparing this with the option of outsourcing payroll services, one can clearly see the difference in costs. Hiring reliable and experienced payroll clerk such as the ones people can find at http://www.focushr.net/payroll/ for instance is a good idea, since they will not have to worry about professionalism and timely payments for their employees if they use FocusHR. And when the payroll staff does their job properly, employees will never complain about incomplete salaries and similar things.
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