Why Using Traditional Payroll Systems Is Not a Good Idea by websolutionz


									    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.


                                    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.

To top