Clever RX
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Technology Delivers Real Results in Payroll

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Handling payroll documents is a major responsibility! Payroll is accompanied by a trail of paper that could easily become an avalanche without careful processing. Fortunately, technology has answered the call and solved many of payroll’s record keeping dilemmas.

Payroll involves the following tasks:

  • Compliance with federal, state, and local regulations
  • Timely and accurate issuance of paychecks
  • Periodic reporting

Those who work in payroll face the following challenges:

  • Complexity
  • Communication
  • Technology
  • Accuracy

With the many challenges and complexities of payroll it is understandable that many decide to outsource payroll. Two of the fundamental operations of payroll are record keeping and payroll operations.

Record Keeping and Systems

Payroll could easily get buried in its own records. Employment records, numerous IRS forms, state and local tax records, social security and Medicare data, paid checks, timecards, policies and procedures manuals, state unemployment records – countless records require your careful attention and retention.

It is difficult to imagine how any payroll department could function without computerized payroll systems and other technology designed to generate, store, and retrieve data. (Payroll Practice Fundamentals 1.9)

Handling Payroll Documents

The volume of documents and information flowing into and out of the payroll process is enormous.

How the data is obtained from the employee is determined by the employer in most instances, either on paper or electronically. The employer in most instances defines the actual elements of the data which must be obtained. However, in some circumstances either the law or regulations will define the data to be obtained, e.g., marital status and allowances are obtained from Form W-4 as the IRS requires them to be obtained under penalties of perjury.

Payroll Operations

The computerized payroll system has many components that must work together.

  • Hardware - the physical components of the computer
  • Software - the programs
  • Network - providing communication
  • People who operate the system

When all the components work well together, a computerized system will improve the efficiency of the payroll department.  A cloud-based payroll system can help the department accomplish the following tasks:  

  • Complying with Federal/State/Local Regulations and Company Policies
    For employer’s compliance means dealing with federal, state, and local taxation, withholding, depositing, and reporting requirements on a timely basis. In addition, compliance requires that employees are paid as the FLSA and state wage and hour rules require.  (Payroll Practice Fundamentals 2.1)
  • Timely and Accurate Issuance of Paychecks/Direct Deposit
    Above all, you need a system that can reduce the human labor (and, therefore, human error). The system must be sophisticated enough to calculate wages and tax withholdings and to deal with tax complexities.
  • Periodic Reporting
    Your payroll system must enable you to report not only to federal and state taxing agencies but also produce internal reports, providing management with essential information to evaluate expenses and trends.
  • Record Retention
    Your system should facilitate the maintenance of records, both storage and retrieval.
  • Security
    Payroll system must be as secure as possible.

 Embracing technology by outsourcing payroll will free your business of significant paperwork and hours of manual labor and possible human errors. Choosing a trusted source to facilitate payroll is the next step in improving productivity and boosting your business’ performance. AAP provides all your workforce management processes – payroll, HR, time, and benefits. AAP can help you manage the entire employee lifecycle, securely store and share data, ensure organization-wide compliance, while processing payroll efficiently, accurately, and completely.

For more details about what services AAP offers visit our website at aaphcm.com.