The Benefits of an Automated Payroll Processing System

The Benefits of an Automated Payroll Processing System

Paying your employees is an essential aspect of your business. Doing it correctly also has many benefits for the employer and the employees. As a business owner, ensuring your employees get their promised payment on time should be one of your top priorities, and that involves ensuring smooth payroll processing.

As the world keeps revolving, it does so with many changes, most of which are an improvement to the way of life of human beings. With evolution, technology has been a part of the process that has proven beneficial to human beings, and we are taking full advantage of its benefits. The importance of technology cannot be overemphasized in our day-to-day activities and even when it comes to our business activities. Most businesses now go digital with most of their operations. Once a technology is introduced into a system, the risk attached to human process errors will reduce. 

Since we’re talking about doing your payroll processing correctly to reap the benefits attached to it, we will be looking at ways technology can be introduced into payroll processing to benefit your business.

What is Payroll Processing?

As a business owner, one of your paramount duties is to pay your employees at the scheduled payment time. The process from when employees’ payment details are gathered to when they get paid is called the payroll process.

Payroll processing involves getting employees’ payment details, calculating their gross pay, withholding their taxes, calculating their amount of work days, and more. It can either be done manually or through automation, that is, by introducing payroll processing software. Manual payroll processing can be lengthy and is prone to error which might be costly. Automating your payroll processing, on the other hand, can help hasten the process and is less susceptible to errors. This way, you can get your employees paid on time and, at the same time, have enough time to attend to other business activities.

How to manage your payroll process

Depending on your business size and preference, there are three different ways to manage your payroll process. As a business owner, you should weigh your options and check the benefits of the payroll processing methods to know which fits best with your business. Below are three available methods of processing your payroll.

1. Manual payroll processing

This method involves processing your payroll by hand using paper or a spreadsheet from where employees’ details are collected to where their salaries are calculated, deducting taxes and other deductions. This method can be stressful and time-consuming. It is also exposed to the risk of human error. Depending on your business’s employee numbers, manual payroll processing might be the best option for you, especially if your employees are not up to ten.

2. Outsourced payroll processing

This method involves outsourcing payroll processing to a professional third-party service, which processes payroll for businesses at a price. They will help you take care of your payroll, deduct and file your taxes, and pay your employees at the end of the process.

3. Using a payroll service provider software

When we talk about the use of advanced technology in payroll processing, this method is what we are referring to. To use this method for payroll processing, you must register with an online payroll processing service provider such as and supply all necessary information. The service provider will help you process your payroll and calculate and file your taxes, all automated with just a little of your involvement in the process, supplying them with all necessary information. 

Benefits of using an automated payroll processing system

Introducing automation into your payroll processing helps to alleviate the burdens tied to the manual payroll processing method. Below are some of the benefits of using an automated payroll processing system.

  • Reduce errors: Just like you are less likely to make errors during mathematics calculations using a calculator over using our human brains, payroll software is better when calculating gross pay, tax deductions, overtime, and the like. Introducing software in your payroll processing will help reduce the risk of human errors attached to the manual method.
  • Save time: Processing your payroll manually takes a lot of time, from collecting employees’ data to calculating their time present at work and all other calculations related to payroll processing. You can save time spent if the process is automated. You can have more time to carry out other business activities.
  • Simplify tax filing: Tax filing might be complicated when you do it manually, but it comes easy when using an automated payroll processing service. The software will help you calculate your employees’ taxes and file them automatically.
  • Save money: You can lose a lot of money if there is an error while processing your payroll manually. You can avoid losing such money when you automate your payroll processing. The time you save using an automated payroll system can be converted into cash when invested in other business activities.
  • Increase security and confidentiality: With an automated payroll system, your employees’ payroll details are secure, unlike when the human factor is heavily involved in the payroll process.


Payroll processing is an essential part of a business as it is the most important aspect of employees’ welfare. For this reason, employers must take it seriously and find every possible way to handle the process correctly.

The introduction of technology into payroll processing has helped simplify the process, making it easy for CEOs and HR managers to pay their employees easily. You can join other business owners today and enjoy automated payroll processing by signing up with Earnipay’s Payroll Product.

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