Leaking Profits: Is Your Payroll Method Obsolete?

Posted On Oct 2, 2017 1:43:43 PM by Omar Ghazi

Oh payday! Many of us look toward that end of the week increase in our bank accounts. Although a great feeling, for small businesses it can be a very bittersweet process. Doing payroll could mean opening up that dreaded spreadsheet or pulling out the trusted (or is it?) calculator. And as a business owner, you might ask yourself why you can't just spend that time focusing on growing your business. On top of that there is tax season. You have to ensure you are using the updated forms, and are compliant to all tax changes, tax laws, and tax tables. Pretty soon you may realize that your dream of running a manufacturing business can quickly turn into a nightmare of paperwork. If this sounds like your business, then we have some great news for you! We can help you take back control! We are excited to announce an exciting new integration that is live as of today. JobBOSS has partnered with Red Wing Software to integrate their CenterPoint Payroll system directly with JobBOSS!

But what does this mean? And how will it affect you? Do you even need payroll software? Let's look at a few reasons why you might need a payroll software to begin with, and how this integration is the icing on the ERP-payroll wedding cake 🎂

You are spending too much time around business, instead of doing business

As a small-medium size business (SMB) using ERP software along with a separate payroll software, you have to set up all the employee-specific information in both systems independently. Additionally, you have to manually enter time, attendance, pay rate, and other relevant data. According to a 2015 survey conducted by score.org - a resource partner of U.S. Small Business Administration (SBA), 40% of small businesses spend over 80 hours a year on taxes, payroll, and working with obligations. Take a look at the pie chart below that shows the annual cost of doing payroll related tasks for small businesses. You can quickly determine that maintaining an ERP system and a payroll system separately can add to the time, complexity and introduce a sea of errors.

Annual Payroll Related Costs for SMBs

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With the new seamless integration, your JobBOSS data pertinent for payroll will automatically get synced with CenterPoint Payroll. Did an employee change their address? How about a promotion? Any changes made to either JobBOSS or CenterPoint Payroll will be reflected on the other platform automatically! CenterPoint Payroll can retrieve Employee, Labor, and Attendance information and send data back to your JobBOSS General Ledger.

Your payroll method might already be obsolete 

Whether you operate a bagel business in New York and are wondering whether your altered bagel will have a state tax, or a manufacturing shop in New Mexico, where turning 100 exempts you from state taxes, keeping up with strange tax laws and tax code changes can be never-ending. In 2016 alone, there were 306 tax rate edits. And as of this post there are 324 for 2017 already! It is very possible that the payroll method you are using is already obsolete because it does not reflect the latest federal or state tax rate changes.

Data Flow Between JobBOSS and CenterPoint Payroll

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Red Wing Software takes on this burden for you. With updates that can occur as frequently as multiple times a week depending on the changes imposed or states/jurisdictions being edited, you are always current. CenterPoint Payroll contain tax tables for all 50 states. It also contains state tax forms for tax deposits, along with both unemployment and new hire forms. The system is also built on .NET based code providing you with a more modern platform and future-proofing your payroll software needs. Any of these updates made in CenterPoint Payroll will immediately be updated on your JobBOSS General Ledger. 

Mistakes can be costly

For the 2016 fiscal year, the IRS issued 5.9 million penalties and levied $6.1 billion for mistakes businesses made with their employment taxes. 11.8% of businesses experienced a penalty for errors, late filings, or other mistakes filing unemployment tax, averaging over $797 per penalty. Needless to say, errors made on payroll can be dreadful. 

Every month, employers across the United States are required to send money to the IRS to cover payroll taxes. These levies are drawn from employee pay to cover Social Security, Medicare, and unemployment insurance. Many businesses use spreadsheets with linked tabs for their payroll, or they manually enter their employee data into a separate payroll system. As your business grows, you may need to train new people to handle your spreadsheet-based payroll. A system like this can be cumbersome and complex, increasing the risks of causing detrimental errors.

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With CenterPoint Payroll, you can be accurate. All the payroll calculations you need for your shop can be done automatically. Furthermore, you can reduce data entry time and duplication while having easy access to employee information. Without costing an arm and a leg, the integration between JobBOSS and CenterPoint Payroll will give you the peace of mind you deserve.

Your payroll system might hinder your business growth

National Federation of Independent Business (NFIB) in their August 2017 report states that small business are soaring, and are making long-term investments now to aid their growth. 38% of manufacturing firms have plans to make capital outlays based on their sales and growth expectations. And 18% of owners plan to create new jobs. If you are within this statistic, or soon hope to be, you need a flexible payroll platform that works with your JobBOSS system with ease.

With unlimited users, companies, databases, job shops, history, and employees, you will never have to worry about reaching any limitation. Do you manage vacation or PTO? How about sick time? Does your company need to track volunteer hours for your employees that are helping their communities? Planning to offer benefits to your employees? CenterPoint Payroll allows you to easily track any leave needs. Using their large variety of calculation methods, you can also track benefits automatically.

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To run or grow your business, it is also important to review your company's payroll performance from time to time. With its robust reporting capabilities, CenterPoint Payroll lets you fine tune your all its system reports as they are fully customizable. Users can create report groups or favorites for each company or client that can be saved and ran after each payroll. Likewise, reports can be exported to Excel for further customization if necessary. As you add more employees in JobBOSS, all the employee information will be copied and synchronized with CenterPoint Payroll.

If you are currently doing payroll manually or on separate systems, it’s not an easy feat. Especially considering that you need to know a lot about tax laws and payroll regulation to do it correctly. But we are here to tell you that there is a better way. One where you can let a payroll and ERP software carry the burden for you. To help you seamlessly transfer information into an airtight payroll solution that is always current. An integration that is accurate yet flexible, and lets you cut down on your payroll errors all the while you focus on your dream of growing your business. What’s not to love about that?

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LEARN MORE ABOUT JOBBOSS PAYROLL HERE

 

Written by:
Omar Ghazi, Senior Product Manager
JobBOSS
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