Automated Payroll: How it Saves You Time & Money

How To Increase Efficiency With Automated Payroll Processing Infographic


As well as being a time-consuming process, managing payroll requires efficiency and attention to detail to ensure that employees are paid accurately and on time. For this reason, many SMBs are turning to payroll automation to streamline the processes of managing their payroll in house. 

Automated payroll helps to minimise cumbersome manual processes and inefficiencies, while also ensuring that legal and compliance needs are met. This gives HR and accounting teams more time to focus on other business-critical tasks, which is particularly beneficial for small businesses with limited resources. 

In this article, we’re going to take a look at automated payroll in more detail, explaining the benefits and considerations to help you understand how it can fit into your business.

What is payroll automation?

Payroll automation is the process of using specialised software to perform core payroll functions, such as calculating salaries and dispersing employee payments, without the need for human input. This allows these steps to be completed in just a few seconds, saving valuable time while increasing data accuracy by minimising errors. 

Not all payroll solutions offer automation, and some feature more powerful tools than others. For example, sophisticated automated payroll systems may support multiple bespoke workflows, or use algorithms to learn and adapt to your business’s needs over time. The level of automation you require depends on your business size and structure, as well as your available budget.

The time-saving benefits of automated payroll

One of the key benefits of an automated payroll system is that it helps to save time throughout the entire process. Let’s look at this in more detail.

  • Simplified data entry

Payroll automation helps to simplify data entry by integrating with other systems and databases to populate essential employee information. This allows businesses to allocate resources more efficiently and minimise the risk of costly payroll errors associated with manual data entry.

  • Automated calculation of wages & deductions

By automating wage calculations and deductions, your payroll department can be sure that employee pay is accurate, without requiring additional administrative burden. Specialist payroll automation software is also equipped with compliance tools to ensure that your business is making the necessary payments for tax, National Insurance and pensions.

  • Instantaneous report generation

Automated payroll systems are able to combine a wide variety of data into a single interface, instantly populating detailed reports with up-to-date information. This offers convenient yet detailed reporting opportunities, helping business owners to make strategic decisions, allocate budgets, and plan employee schedules with ease.

Cost efficiency benefits of automated payroll automation

As well as saving time, payroll automation also helps businesses to save money. Let’s explore these cost-efficiency benefits.

  • Reduced administrative overhead costs

Automated payroll systems help to reduce manual tasks, so more can be achieved with a smaller team. This allows businesses to spend less money on labour resources for data entry and payroll management, without compromising on accuracy and efficiency.

  • Enhanced compliance & risk management

Even small businesses with basic payroll requirements need to pay close attention to legislation governing tax, employment and labour laws, such as overtime regulations and real-time information (RTI). Automated payroll software uses built-in tools to ensure that processes adhere to all current legislation, reducing the risk of penalties from compliance issues.

  • Increased employee satisfaction with payroll

Paying your workers accurately and on time is essential to increase trust and ensure employee satisfaction. Payroll automation helps to make the overall process faster, while minimising the risk of errors that could cause friction between employees and employers. This helps to boost staff retention and increase productivity.

How to ensure successful payroll automation

While there are many different payroll systems available on the market, the level of automation that they offer can vary significantly. If you’re keen to make the most of the time and cost savings of payroll automation that we’ve looked at above, it’s important to choose the right payroll software for your business. 

When comparing systems, make sure to focus on their automation capabilities and see how well they support your business structure and processes. The number of employees you have, the different pay periods, and the complexity of any bonuses or benefits you offer will all have an impact on which solutions are suitable. Remember that budget isn’t the only factor, especially when it comes to the potential savings that payroll automation can provide. 

Additionally, consider the specific support your HR and accounting teams need. While smaller organisations may see plenty of benefits from basic automation tasks like calculating deductions, larger businesses may need customisable rules-based workflows. Wherever possible, take advantage of a free trial or guided demo to see how well the automation supports your business needs. This also gives you the chance to try out the user interface for yourself and make sure it’s user friendly.

Download your payroll software brochure today

To make sure your business has the best possible start when adopting automation, it’s important to choose a reputable provider for your payroll automation system. Along with helping to ensure high-quality software, this also gives you the peace of mind that your payroll processes are compliant with all relevant legislation. 

As one of the leading providers of payroll software in the industry, PeopleHR not only offers robust payroll software packed with versatile automation tools, but also provides extensive additional client support. Whether you’re looking for staff training, guidance on best practices, or you’d like to outsource payroll completely, we’re here to help. 

Download our payroll software brochure today to explore the options available for your business. 

Jack Tuhey
By Jack Tuhey Sales Executive

Jack Tuhey is a Sales Executive with 7+ years of experience at Access PeopleHR. Passionate about modernising internal processes for businesses and HR professionals, Jack aims to save customers valuable time and resources. With expertise in consultancy, direct sales, and SAAS product demonstrations, he tailors your demos for growth and efficiency.