Handling deductions and additions are a big part of the reason why you need payroll software with 401(k) contribution tracking. It might feel like you can get away with using basic tools for your business’s payroll needs. Rather than using the bare minimum software, you should look for a program that cuts down the work for you and makes your tasks easier. Try to avoid getting a payroll system that makes its small business users jump through hoops. Stop calculating data by hand or cross-checking data entries manually when you know that it is not reliable. Stay prepared in case you have more 401(k) contributions to track annually based on how many people you bring on as employees versus independent contractors.
Advanced Micro Solutions Payroll Software will help you any year, but especially on years when you have many 401(k) contributions to track. Prevent stress and mistakes at the end of the year with a system that is designed to process “live” or after-the-fact payroll.
Is Payroll Software with 401(k) Contribution Tracking Necessary?
Yes, getting payroll software with 401(k) tracking tools is important for a handful of reasons. Whether you need to save time or reduce errors, those are just a few of the reasons why it makes sense to invest in a fully comprehensive program. The right software will also:
Reduce your team’s administrative burden. There are certain repetitive steps when you process payroll that are unnecessary. Look for software that enables a team to automatically deduct contributions from paychecks. Get rid of conducting incessant manual data entries or reconciliation that can potentially result in oversights.
Simplify employee census management. Invest in payroll software with 401(k) contribution tracking so that all of your information is relevant and you avoid it becoming outdated. Use the system to maintain up-to-date employee data, including each employee’s eligibility for a 401(k) plan. Software keeps that information much more organized and accessible than physical files.
Improve your overall data security. Employees want to know first and foremost that their data is secure in your system. Software with strong encryption and security features benefits workers and employers in equal measure. Protect your employees’ sensitive information that is related to their retirement savings. Reduce the turnover rate of employees that you need to hire when they trust your company.
Ensure total compliance while running payroll. Generate reports by using payroll software with 401(k) contribution tracking. Make sure that your program offers all of the reports that you need now or know you will need in the future. You may not know exactly how a business will change in the years to come, but that is why you should try to think ahead whenever possible.
Why Some Small Businesses Prefer In-House Payroll Management
In-house payroll is not for everyone. Some people prefer not to outsource payroll. It may depend on personal preference, budget, or knowledge of running payroll. A small business may choose to get in-house payroll if they want:
Greater Control – An in-house payroll specialist or one of the existing employees using payroll software with 401(k) contribution tracking can streamline payroll management. You will not need to wait for a call back from an accountant if you have specific questions or concerns. You will get to dictate when they submit forms and reports ahead of certain deadlines.
Easy Integration – Businesses that have already invested in third-party applications that they use during tax seasons may prefer to keep their work in-house. Finding payroll software that aligns with your other programs is essential for saving time and money. You will also reduce headaches when you do not need to take multiple steps just to transfer data.
More Affordability – Small businesses cannot always afford to hire an accountant or outsource payroll support. There is affordable software that allows you to select what you need when your business requires it. You should not need to run payroll by hand or rely on any program that has too many extra features.
Is AMS Payroll the Best Choice?
We know that our payroll software with 401(k) contribution tracking is highly customizable, but see for yourself whether it is right for your business. Download a free 1099-etc Demo software and discover how you can track payroll, plus federal, state, and local taxes. We support users across all 50 states, as well as the District of Columbia and Puerto Rico. Set up as many as 40 user defined fields for deductions and additions, including 401(k) or health insurance.