6 Trends in Employee Management and Payroll


Extra time is a scarce resource when you’re a business owner. Managing all your day-to-day responsibilities keeps you plenty occupied, leaving little time to keep up with the latest developments in business management and technology. But it’s vital to think about the big picture and consider new ways to make your business run more efficiently.

In this blog post, we’ll explore the latest trends in employee management and payroll technology. Modern payroll software has many advantages that allow for employers to engage with their staff in new ways. Here are six trends in employee management and payroll all business owners should know:

1. New types of employees

It’s becoming more common for businesses to hire employees on a short-term or part-time basis. These types of workers can help out during busy times or provide the necessary skills for specific projects. However, these new types of employees are often given different compensation and benefits than full-time employees.

Classifying these employees correctly and keeping the proper records has become much easier than it once was. Using modern payroll software, you can easily add temporary employees and set them up to be paid accordingly.

2. Outsourcing to 1099 contractors

Like short-term and part-time employees, 1099 contractors are becoming a popular alternative to hiring full-time staff. There are some major differences between 1099 contractors and W2 employers, including how income tax is withheld.

Cloud payroll software allows you to classify contractors and employees correctly, so you can avoid issues with the people who work for you and the agencies you pay taxes to.

3. Staying compliant

Every business is required to provide specific information to the IRS in order to comply with tax regulations. And the responsibility has grown in the past few years with the Affordable Care Act taking effect.

The good news is cloud payroll software helps business owners with their tax requirements. It can calculate what you owe in taxes and auto fill the necessary forms for you. You can then e-file the forms online, often directly from the payroll software.

4. Connect payroll and accounting software

More and more businesses are continuing to adopt cloud software since different systems are able to connect and share data. For example, after your staff gets paid, your payroll software can automatically update the general ledger in your accounting software. It can also connect with your HR system and update the benefits accrued by each one of your employees.

5. Access for your staff

You’ve probably experienced employees asking about how many hours they’ve worked during the pay period or the number of PTO days they have available. Keeping track of these details used to be difficult for employees but they now have this information at their fingertips.

Your employees can access your payroll software and get a complete view of their hours, wages, benefits, and more. They’ll only have access to their own personal information so no sensitive company information is at risk.

6. Automate pay day

Paying your employees is traditionally quite the endeavor. You have to calculate the correct hours, wages, and withholdings for each employee and ensure everyone’s final pay is absolutely correct. You also need to meet very specific deadlines so checks and direct deposits are prepared in time for pay day.

The process is now much easier. Your employees can enter their hours into your cloud-based payroll system and it will automatically calculate everyone’s correct pay. All you need to do is review the details and make sure everything is accurate.

Advancements in technology are changing the way people work and get paid. By taking advantage of the capabilities of cloud payroll software, you can save time and have the confidence that your business is meeting its employment and tax responsibilities. You can also hire different types of workers that meet your business’s specific needs and know they’ll be compensated correctly without any extra work on your end.

BookKeeping Express (BKE) provides payroll services for small and medium-sized businesses. We can set up a modern, cloud-based payroll system for your business and help you manage it. Visit our payroll features page to learn more.