Employees are the main asset of any business. This is the reason why every business owner must ensure correct and timely payments to their employees. Most businesses use payroll software to ensure that their employees are paid on time. However, a term known as single-touch payroll, also known as single-entry payroll, is getting popular. Single-touch payroll is a methodology used to track and pay employees the same way they would be paid under an automatic payroll system. This saves time to be spent on individual tracking of employees and their wages. The process is automated, and the employee’s details are stored only once instead of being tracked individually. The move towards adopting a single-touch payroll system means that your business will not just automatically pay employees with a set salary, but it will also eliminate the need for employers to submit wages manually through other systems. So, should you choose single-touch payroll compared to your regular payroll system? Here are 4 reasons why your business should choose single-touch payroll:
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Simple and fast-
The last thing you want to do is stress your employees out with an unnecessarily complex setup process. When it comes to payroll, you do not want to build confusion as to what they need to do, where they can go, or what they need to have. Your new installation should be quick, simple, and straightforward, allowing you to get right to the good stuff. Another advantage of switching to a single-touch payroll system is that it allows you to add employees and non-employees anytime. With a paper-based payroll system, you may not be able to add new employees until the next payroll cycle.
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Employees can seamlessly access pay information-
With a single-touch payroll system, employees can access their pay information on their devices anytime, anywhere. For example, a brick-and-mortar business can have its employees submit information from the shop floor by scanning their timesheets or creating a timesheet from their laptops or computers. With a paper-based payroll system, employees need to search for the relevant information in the payroll records. However, in a single-touch payroll system, employees can easily access the relevant information without spending time and effort finding payroll records.
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Payroll data is fully reconciled and verified-
With a single-touch payroll system, payroll data is fully reconciled and verified to prevent fraudulent payments. The payroll information is verified against all the documentation you have provided for that particular employee. For example, you can use the employee’s Tax Identification Number (TIN) to verify their correct withholding and taxes.
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Immediate and accurate pay slips-
If you choose a single-touch payroll system, it will result in immediate payments to your employees. As soon as a pay check is generated, it will instantly be deposited in the employee’s bank account. You do not need to follow up with them to know when they have received their salary. The system will take care of all the details like this. However, when you use a regular payroll system, the salary information is first sent to the employee’s bank account, and then a paper copy of the salary slip is sent to the employee. In either case, the information is not easily accessible. If you want to know whether an employee has received their salary, you will have to ask the employee one by one.
Conclusion
A single-touch payroll system is beneficial for any business. It saves time, reduces operational costs, eliminates errors and fraud, and provides a more efficient way of managing payroll. Employers can outsource the work of managing payroll with other functions like accounts receivable and accounts payable. A single-touch payroll system is the best option to save time, reduce the risk of errors and fraud, and manage payroll efficiently.
