Reduce all the countless hours processing, running and manually inputting payroll. With payroll automation, it’s not only time savings, but it’s reducing cost, increasing accessibility and secure. Not to mention, it ensures your staff are paid on time and accurately for each pay run. We have broken down key terms and benefits below:
Direct Deposit
Direct deposit is a convenient way to pay your employees while shifting your company towards being paperless. With payroll direct deposit, employees are paid electronically. The funds are transferred out of your bank account and deposited directly to the employee’s account.
Timely Payments
The time spent ordering and writing cheques can be better spent focusing on your business. Direct deposits ensure timely payment. Employees don’t have to wait for you to distribute cheques. Lastly, you and your employees can view the payroll transactions through online banking and discover errors immediately.
Reduce Costs
According to the CRA, it can cost approximately four times the cost to process cheques than to use direct deposit. Cheques can be expensive and can be lost, damaged or stolen. Replacing these cheques and investigating what happened to the missing cheque uses up more materials and time. Furthermore, bank fees with bounced cheques can add up over time. These costs can be averted with direct deposit as it is paperless.
Reducing Fraud and Theft
In addition to cheques being stolen, transitioning away from cheques could reduce any fraudulent activity. Paying employees electronically helps you hide confidential information as cheques expose your bank details and account number. Keeping this information hidden protects you from fraud and possible theft.
Payroll Remittance
Direct deposit is just one way to automate payroll, but you can also automate payroll remittance. Online payroll software can calculate payroll deductions and remittances for you which will save you time and hassle.
Payroll software also provide employees with their own portal to conveniently access their paystubs and forms. Employees won’t have to contact administrative staff to send documents. The portal ensures that documents are safely stored, historical data is retained and prevents staff from losing paper slips. At the end of the fiscal year, employees can use their portal to pull all their necessary tax forms.
Conclusion
Overall, there are many benefits to automating payroll deposits and remittance. Automating payroll also helps you automate forms such as ROE, T4s and T4A. Employees will be satisfied with the instant payment and not having to deal with cheque holds. Your business will have more time and resources to focus on core value-adding activities.