Online payroll solutions can save you time — no doubt about that — but how much time can they really save?
How Long It Takes to Do Payroll For One Person.
There are five basic things you have to do when you do payroll. You have to calculate, do paperwork, check legislation, add up the days worked, and create reports. Doing all of that manually takes about 11 minutes. Doing it with payroll software takes only 90 seconds — just one-and-a-half minutes.
The Difference Adds Up.
The larger the company, the more it makes sense to use an online payroll solution, because more time gets saved. For a small business of about 10 employees, it’d take about two hours — 110 minutes — to do the payroll manually, but it’d only take 15 minutes to do it online. For a company of about 50 employees, it’d take nine hours and 10 minutes to do payroll manually, but only an hour and 15 minutes to do it online. In other words, what would be an entire day’s worth of work per pay period becomes a simple, easy task.
The Real Cost of Doing Payroll Manually.
On average, a payroll manager could save about seven hours and 55 minutes of labor each month using an online payroll solution. That adds up. If a payroll manager did it manually for a year, they’d spend about 15.5 days — more than three business weeks — doing payroll. Doing it online would take about two days a year. In other words, you’d get more than two weeks’ worth of labor back.
Using an online payroll solution, you can save copious amounts of time, which means that you can reallocate your staff on to more productive projects. In other words, it can save you money, too.
If you have any questions about online payroll, feel free to share in the comments.