Using online payroll services can save small business owners and managers 95 hours of labor every year. Sound too good to be true? Believe it or not, it’s the truth. Here’s why.
Between calculations, paperwork, legislation checks, calculations, and report creations, an online payroll system takes about one and a half minutes per employee. Doing it manually takes 11 minutes per staff member. It’s a pretty big difference, but will it add up to a whopping 13.5 days worth of labor?
Assuming the small business has about 50 employees, an online payroll system would take a business owner about an hour and 15 minutes to complete the payroll process, whereas doing it manually would take about 9 hours and 10 minutes every month.
That’s a whopping seven hours and 55 minutes that an online payroll system would save. Considering the fact the average American works about 7.6 hours a day, online payroll services could save business owners and managers more than a full day’s worth of labor every month.
Now, assuming that a manager or business owner will work about eight hours a day taking an hour lunch break, then that almost eight hour difference adds up to a full 13.5 days worth of saved labor, which is (drum roll, please) 95 hours every year!
The average business manager makes about $59,000 per year, which is $1,134.62 per week. This means that switching from a manual payroll method to an online one would save a business $2,269.24 per year in labor costs.
The question now isn’t whether or not a business should start doing payroll online rather than doing it manually. The question here is what would you do with that saved time? Managers could spend that time hiring new people, looking more new ways to drum up business, or even just catching up on a backlog of work.
Regardless of what you’d like to use that time for, you have to get it back first, which means switching to an online payroll system. If you have any questions, feel free to ask in the comments. Learn more.