Payroll & Taxes

What Is Payroll Automation?

Take the headache out of manually configuring salaries, deductions, and bonuses with payroll automation.

Blog Author - Amanda Beach
Amanda Beach
Mar 29, 20243 minutes
Blog Author - Amanda Beach
Amanda Beach

Amanda Beach is a writer, editor, and project manager with 10 years of experience in tech and HR. She currently resides in Denver, CO.

32 postsAuthor's posts
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If you’re a business owner, the complex process of calculating and distributing employee salaries, bonuses, and deductions comes with the territory. Business owners have a lot on their plate and traditional payroll processes can be time-consuming, error-prone, and tedious.

But what if they didn’t have to be? Enter payroll automation. If you’re running a business, payroll automation has its benefits, and can transform your business for the better.

How Does Payroll Automation Work?

Payroll automation involves the use of technology and software to automate tasks such as generating pay stubs, calculating taxes and deductions, and distributing payments. Not only does automation eliminate the need for manual data entry, but it also reduces the risk of human error.

Modern tech has made it possible to streamline tedious processes like running payroll. It starts with integrating payroll software like Justworks Payroll with your existing HR and accounting systems. Once payroll is processed, the software also generates pay stubs and distributes payments to employees. What’s even better is that payroll software can often be customized to fit your company's specific payroll needs. 

Benefits of Payroll Automation

While payroll automation is a win-win for both employers and employees, let’s take a closer look at the specific benefits that it can bring to your business.

Time and Cost Savings

One of the most compelling benefits of payroll automation is the sheer amount of time it can save. Pair that with the equally attractive cost savings it offers, and it can be hard to see a downside. Traditional payroll involves manual data entry, making the process time-consuming and prone to errors. With payroll automation, these manual tasks become automated and can mitigate the risk of costly errors. 

Compliance with Regulations

The complicated nature of payroll compliance can make it tough to tackle. Payroll regulations and tax laws are constantly changing, which makes it challenging for businesses to keep up. Payroll automation software is regularly updated to ensure its users are properly complying with these ever-changing regulations. This means your business will have an easier time staying compliant and avoiding the risk of penalties and legal issues.

Improved Employee Satisfaction

It might not be immediately obvious, but payroll automation can improve employee satisfaction. When your business makes accurate and timely payments, employees are more likely to be satisfied with their jobs. Some payroll automation software (like Justworks Payroll) can even provide employees with self-service options — things like accessing pay stubs and tax forms online can be done with a few clicks.

Enhanced Data Security

Data security risks are ever-present in today’s high-tech world and businesses aren’t exempt from these risks — especially when it comes to payroll security. Payroll processes involve handling sensitive employee information like social security numbers and bank account details. Today’s modern payroll automation software usually offers enhanced data security measures to help protect sensitive information. 

How Can Payroll Automation Optimize Your Business?

Given the aforementioned benefits, the value of payroll automation software is hard to refute. But if you want to understand how payroll automation can optimize your business on the whole, read on.  

Increased Efficiency

When it comes to running a business, efficiency is key. And with payroll automation, you can significantly increase the efficiency of your business. Automating processes means your HR and accounting teams can focus on other important tasks like employee development and financial planning. This can mean increased productivity and ultimately, profitability for your business. And what business owner doesn’t want that?


As your business grows, so does your workforce. Hiring more employees is an important milestone, but it can make traditional payroll processes even more time consuming and prone to errors. Justworks Payroll can scale with your business, making it a more efficient and cost-effective solution for managing payroll long-term.

Real-Time Insights

As a best practice, it’s always better to make decisions based on data, but do you know how to access those insights from your payroll data? Payroll automation software can provide a  real-time look into your business's payroll data to better identify trends, track expenses, and make informed decisions about your business's financial health. 

Integration with Other Systems

Working between multiple systems can be cumbersome and increase your risk of errors. Wouldn't it be helpful to have your systems talk to each other? Payroll automation software can help with that. Options like Justworks Payroll can integrate with other systems like accounting and time-tracking software. This eliminates the need for manual data entry and helps ensure that all your systems are up-to-date with the latest information.

How Justworks Can Help

Are you ready to offload the headache of manual payroll? Justworks has your back. With Justworks Payroll, you can pay your employees — salaried, hourly, and contractors — reliably and on time. You’ll benefit from automated payments, tax calculations, and withholdings, and you can easily access year-end tax forms when you need them. Not only that, but you can also set PTO policies, access pay stubs, create reports, and store documents — all in the same place. Get started with Justworks Payroll today!

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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Written By
Blog Author - Amanda Beach
Amanda Beach
Mar 29, 20243 minutes

Amanda Beach is a writer, editor, and project manager with 10 years of experience in tech and HR. She currently resides in Denver, CO.

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