Doing payroll by hand is, to say the least, outdated and simply no match to the more modern approaches. Going down the manual route will most likely do more damage than good to your business. Here’s how:
Calculation errors—doing calculations by hand is often prone to an error here or there, which could result in paying employees the wrong amount, or unknowingly withholding taxes.
Time-consuming—manual payroll calculation can waste a lot of your time, which you could otherwise spend growing your business.
Loss of information—it’s easy to lose your information, as the papers you use could either get damaged or misplaced. Payroll information saved on your computer isn’t totally safe either, with threats such as viruses and hackers, or even hardware failure of the computer.
Outdated taxes—tax rates are constantly getting updated; when you do payroll by hand, there’s quite the likelihood that you’ll use out-of-date tax rates. Missing a single update will cause you to accidentally withhold and pay out the wrong amounts, incurring penalties as a result.
Wrong figures—having your payroll numbers (tax rates, time cards, etc.) all over the place make manual payroll calculation quite a headache. Each time you update a number on one document, you must not forget to also update all other documents, or your calculations will be off.
Time constraints—if you decide to do payroll by hand, it’s important that you plan well ahead of time or risk running out of time and consequently handing out your paychecks late.
Here’s another payroll option to consider: hiring a payroll services company.
If you’d rather focus on improving or growing your business, hiring CheckMark payroll services may be the perfect option for you. This is much more convenient than doing payroll by hand for two main reasons: first, it saves you plenty of valuable time, and secondly, with professionals handling the work, you can always rest assured that your payroll for small business will be done accurately and on time, every time.