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Why you should use payroll automation

How do you do payroll automation?

How to choose the best payroll automation tool for your business?

A payroll solution for a global team

What is payroll automation

Payroll describes the process of paying employees. From calculating the amount of time worked and recording any time off to distributing paychecks and ensuring that the pay stubs reflect the correct amount.

Manual payroll takes time and effort while introducing the risk of human error when making payroll calculations. 

Payroll automation streamlines the process by feeding all of these steps through an automated system. The tool assists finance teams in various tasks such as calculating tax withholding, filing taxes, handling direct deposits, and saving time and money in the process. 

Instead of stretching the internal team thin, payroll automation systems make the process more efficient by performing the following functions;

  • Track payroll data (and keep it updated)
  • Run payroll
  • Time tracking according to when employees clock in (and out) 
  • Tax filing
  • Calculating overtime, bonuses, PTO, etc
  • Calculate tax reduction
  • Improve recordkeeping
  • Financial planning assistance
  • Update important documents

Why you should use payroll automation

It’s not unusual for traditional businesses to be hesitant about adopting new technology, especially in the payroll department. Yet the Global Payroll Management Institute highlights a shift toward payroll automation as both large and small businesses discover the benefits.

Consider the following benefits of payroll automation as a starting point.

More efficient and cost-effective

Manual payroll doesn’t only involve spreadsheets and calculations but also human resources that are better spent elsewhere. An automated system saves time by streamlining the process, allowing finance managers and HR to focus on more important tasks such as onboarding new hires.

Making the payroll system more efficient also saves money. The cost of the initial investment of the software and training is quickly surpassed by the amount of time (and money) that is saved. In fact, the American Payroll Association estimates that an automated system can reduce payroll processing costs by up to 80 percent! 

Minimize human error

Consider the most common challenges with payroll. Issues such as miscalculating pay, failing to track overtime, and missing important deadlines all stem from human error. Depending on the number of employees, these challenges become more difficult to manage. 

Workflows and business processes are simplified with the help of an automated system. By assisting with data entry, timekeeping, and other payroll tasks, human error is minimized. The system also helps with organizing payroll records for future access.


When working with a remote team, each employee’s local tax laws play a role in the company’s compliance. Payroll software that offers integrations with other systems makes this job easier while assisting with compliance.

Payroll automation software considers and calculates details such as federal income tax and employee benefits while ensuring that the company stays in line with IRS tax laws (and beyond). Global teams, in particular, benefit from systems with international payroll processing features.

How do you do payroll automation?

The whole premise of payroll automation is that it makes the payroll process easier and more efficient. Businesses must lay a firm foundation to make the switch seamlessly and reap the benefits.

The following steps will start you off in the right direction;

  1. Choose a payroll system that suits your company size, location, and processes
  2. Input all payroll data and necessary information
  3. Inform employees of the change 
  4. Gather all necessary documents and processes
  5. Train relevant employees to use the automated payroll system

How to choose the best payroll automation tool for your business?

Getting started with payroll automation begins by choosing from the best global payroll providers for your company. While each business has its own unique needs, keep the following considerations in the front of your mind.

  • Will your payroll software integrate with other HR services?
  • What is the coverage of your global workforce’s location?
  • How does the system’s user experience compare?
  • Does the software process payment for both employees and contractors?
  • Are there customizable reporting features available?
  • Can the service provider scale with your business?
  • Are there flexible global payment methods available that work for your business model?
  • Does the provider offer strong data security?
  • Does the software offer value for money?

A payroll solution for a global team

Say goodbye to payroll services that are time-consuming and costly! Streamline your payroll process and business admin with Deel’s global payroll. Built for today’s world of work, we offer a cutting-edge experience for remote and global businesses.

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