Maybe you read the example above and thought, “Nope! It’s still more cost-effective for me to do payroll manually.” It could seem like that, but there are other ways payroll software saves you money that aren’t all about time. How payroll software saves you time and money What if you hire someone to do payroll for you? Well, if you pay that person more than $19 per hour, you’re losing money.
If you answered yes, then it costs you more to do payroll by hand. Is your time worth more than $19 ($57/3) an hour?Ĭan you generate income for your business in those three hours, instead? And let’s say it costs $57 a month for payroll software. Let’s say it takes you three hours a month to do payroll for three employees. The real question isn’t about the cost of the software, it’s about the value of your time. No matter how simple your payroll is, there are always wages to calculate, taxes to withhold, and forms to file. Sure, when you DIY your payroll, you don’t have the cost of payroll processing, but the trade-off is time. But isn’t doing payroll manually way cheaper? With payroll software, you have one job - to run payroll.
Even better? It takes care of this stuff in the background, which means you aren’t bothered every time there’s a form to file or payment to send. Following state-by-state payroll requirementsĪ good payroll service takes care of all of these things for you.Sending tax payments to federal, state, and local agencies.Calculating and withholding taxes from your employees’ paychecks.There’s a whole bunch of stuff that needs to happen when you run payroll. Instead of calculating your employees’ wages and taxes by hand and filling out complicated tax forms, payroll software like Gusto automates all that hard work for you. What does small business payroll software include? Not only does it save you time, but in the long run, an online payroll provider can save you some serious money. If you genuinely enjoy the math and time involved with doing payroll manually, then hold on to that joy.īut if you’re looking for an out, it’s time to start considering payroll software for your small business. Is payroll software really worth the cost? After all, if you can do payroll for free, shouldn’t you? What are the benefits of using payroll software?
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