Embracing automated payroll

Embracing automated payroll and how it can save you time and money

First published on Friday, Jun 28, 2024

Last updated on Monday, Jul 01, 2024

Payroll management is not only time-consuming, but it also demands efficiency and attention to detail to ensure that individuals are paid correctly and on schedule. As a result, many organisations are turning to payroll automation and online payroll software such as ours to help them manage their payroll more efficiently.

Automated payroll reduces manual processes and inefficiencies while ensuring legal and regulatory requirements are satisfied. This allows HR and accounting teams to focus on other business-critical duties, which is especially useful for small organisations with limited resources.

In this article, discover what automated payroll systems are, what they do, and the benefits and considerations to help you understand how it can fit into your business.

What is an automated payroll system?

Simply put, payroll automation is the process of using specialised software to perform core payroll functions, like determining salaries and allocating 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.

The benefits of automated payroll

Automated payroll systems offer many benefits, revolutionising how businesses manage their payroll operations. From streamlining processes to ensuring regulatory compliance, these systems are transforming the workforce management landscape. And we have the stats to back it up!


By automating payroll processes, businesses can achieve unparalleled efficiency gains. According to the American Payroll Association, automation can reduce payroll processing costs by a remarkable 80%, allowing organisations to reallocate resources to strategic endeavours.


Bid farewell to manual errors with automated payroll systems. Studies show that more than 40% of business owners still rely on spreadsheets for manual payroll management. However, automation minimises the risk of errors, ensuring you have accurate payroll calculations and timely payments to employees.


Staying compliant with tax regulations is a top priority for businesses. With 62% of companies now utilising cloud payroll systems, it's clear that automation is key to meeting regulatory requirements. Automated systems streamline tax calculations and deductions, reducing the likelihood of costly penalties and audits.

From reducing costs to enhancing employee satisfaction, the benefits of automated payroll systems are plenty. By using the power of automation, businesses ensure efficiency, accuracy, and compliance in their payroll operations, setting the stage for sustained success.

The time-saving benefits of automated payroll

One of the key benefits of an automated payroll system is that it helps save time by streamlining the entire payroll process. Such as:

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 and 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 makes the necessary tax payments, National Insurance, and pensions.

Instantaneous report generation

Automated payroll systems can 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 make strategic decisions, allocate budgets, and easily plan employee schedules

By streamlining these payroll processes, automated systems free up valuable time for business owners and HR personnel, allowing them to concentrate on strategic tasks rather than taking up their time with administrative duties.

The cost-efficiency benefits of automated payroll

As well as saving time, payroll automation also helps businesses to save money.

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

Secondly, the risk of penalties or fines due to errors is markedly minimised, as automated systems boast heightened accuracy and compliance with regulatory standards.

Finally, there's the optimised resource allocation; with streamlined payroll processes, businesses can channel their financial and personnel resources more efficiently towards growth initiatives rather than mundane administrative tasks.

Enhanced security measures and compliance benefits

Automated payroll systems offer robust security measures and compliance benefits that safeguard sensitive employee information and mitigate the risk of non-compliance penalties. Here's how:


Automated payroll systems use encryption to secure data during transmission and storage, protecting it from unauthorised access and cyber threats like hacking.

Data protection

Various mechanisms, such as access controls and regular backups, ensure that only authorised personnel can access and manipulate payroll information, maintaining its integrity and availability.

Regulatory compliance

Automated payroll software adheres to tax, employment, and labour laws, including overtime regulations and real-time information reporting, ensuring accuracy and consistency in compliance and reducing the risk of penalties.

Enhanced compliance and risk management

Even small businesses benefit from built-in tools that facilitate compliance with laws and regulations, helping them stay updated and accurate in payroll tax calculations and reporting, thereby minimising costly penalties.

By leveraging automation, businesses can streamline payroll processes, ensure compliance with relevant laws and regulations, and focus on their core operations with confidence.

Improving the employee experience

Paying your workers accurately and on time is key to increasing trust and ensuring employee satisfaction. Payroll automation not only streamlines the overall process, making it faster and more efficient, but it also brings numerous benefits for employees.

Automated payroll ensures improved accuracy in salary disbursement, timely access to pay stubs and tax documents, and a more transparent payroll process overall. This means employees can rely on receiving the correct payment for their work promptly and have easy access to important financial documents whenever needed.

By providing these conveniences, automated payroll contributes significantly to a positive work environment and enhances employee satisfaction. When employees trust that their compensation is handled accurately and promptly, it fosters a sense of security and stability. Moreover, easy access to pay-related information promotes transparency, strengthening the trust bond between employees and employers.

Ultimately, a streamlined and accurate payroll process helps alleviate financial stress and allows employees to focus more on their work, leading to increased productivity and better job satisfaction. This, in turn, boosts staff retention rates and contributes to the organisation's overall success.

How BrightHR can help automate your payroll

If you're still manually running your payroll each period, it's time to automate. By streamlining your payroll processes, you're not just saving time and money, you're investing in the future efficiency and success of your business.

With BrightHR's Managed Payroll service, you can trust that your payroll needs are in capable hands. We take care of the smaller things, so you can focus on what truly matters – achieving your goals and growing your business.

Janine Lennon

Head of Payroll Services

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