In a company, payroll is the sum of all financial records of salaries, wages, bonuses and deductions. Payroll Automation is the use of an electronic system to handle the payroll of an organisation.

For an SME, payroll automation would involve outsourcing the non-value adding functions, which would help simplify processes and cut processing cost and thus increase the organisation’s business focus. Many HR outsourcing companies offer a wide array of Internet payroll service solutions that improve efficiency and effectiveness of conventional payroll processing.

Benefits of online payroll processing:

Benefits of online payroll processing is not only restricted to ease of use but also includes real time information access, on-screen report management, as well as integration with other packages like, HR management.

• Changes the way employer administers the payroll
  With the use of online payroll services employers can manage payroll processing on click of a mouse thereby reducing the burden of paper work. Thus the employers can control payroll hours & employee changes in real time.
• Simple & efficient payroll processing
  Online payroll services are user friendly to the extent that a casual computer user can furnish required processing. These services come with extensive user guide of the service to answer most of the user queries.
• Real time information access
  With online payroll services, processing occurs immediately and an updated report is available to the employer online.
• On-screen report management
  Employer can access all information required to process payroll online. Reports like department and division summaries, workers' comp reports, payroll recap reports, vacation/sick accrual reports, and end of year reports etc. can be accessed online.
• Flexibility
  Internet payroll solutions allows employer to maintain all the necessary data to manage payroll online. It also allows client to choose between numerous set-up & processing options of employee payment, from direct deposit to debit card.
• Freedom
  Web based payroll system ensures 24x7 availability, allowing authorized users any-time login capability. This eliminates scheduling & data-entry timing issues.
• Accessibility
  Internet payroll solutions offer employees immediate access to information like salary history, paychecks information, etc. This eliminates the burden on the payroll administrator to answer any payroll queries.
• Security
  Web based payroll systems utilize various security options like password protection, data encryption, and input confirmation to ensure authorized access.
• Cost effectiveness
  Internet payroll solutions require little, if any, software installation or hardware investment, this minimizes initial setup and configuration activities as well as costs associated with it . In fact, with most web-based systems it is possible to enter employee information and process first payroll within an hour.