Can ChatGPT Help Me Run Payroll?

[Fit Small Business | ]( Payroll Insights from Our Experts Welcome to this week's HR newsletter. We’re so happy to have you! Over the years, we’ve seen the increasing popularity of artificial intelligence (AI)-powered chatbots and tools, such as ChatGPT. While these solutions can streamline certain HR tasks, can they really help small businesses process payroll? Keep on reading for our take on whether ChatGPT can be used for pay runs and the potential risks of letting it calculate employee payments.   First off, what is ChatGPT?   ChatGPT is an AI chatbot that can interact with users in a natural or conversational way. Developed by OpenAI, it utilizes vast amounts of data gathered from various internet sources to respond to questions. It can understand instructions, admit its mistakes, challenge incorrect premises, and assist you with simple tasks like writing an essay and composing email messages. In the HR field, this can be a powerful tool for providing employee support and automating simple tasks like calculating overtime and hours worked. Did You Know? ChatGP has become one of the apps that employees use in the workplace. In the first quarter of 2023, the [usage of OpenAI’s tool grew]( by 120% from January to February and 108% from February to March, according to a DeskTime study. It even joined the list of 100 most-used apps at work, nabbing the 79th spot.     ChatGPT & Payroll: Yay or Nay?   Technically, you can use ChatGPT to automate some processes when paying workers. In fact, a few payroll systems are already utilizing similar AI technologies to spot payroll errors or provide support if employees have questions about HR and company policies. Small businesses that don’t have a payroll system can use ChatGPT to calculate commissions, percentage-based bonuses, and deductions. Its data algorithms can even retrieve the standard rules for computing state-based overtime. This makes it easier for those who [do payroll]( themselves to calculate employee payments. However, it may not be able to handle the entire payroll process. There are certain limitations and security concerns to using ChatGPT for payroll and HR. Let’s take a look at some of the drawbacks and potential risks: - Data security and privacy: For ChatGPT to efficiently process payroll, it needs a data source (like an HR system) where it can get information, such as employee salaries, tax status details, and attendance records. You may face challenges integrating ChatGPT with an HR system as the latter usually comes with high-level security protocols. - Data accuracy: Given that ChatGPT collects data from various internet sources, it might pick up incorrect payroll-related information. This AI tool is also sensitive to phrase changes when you ask it questions. It can give no response if you phrase a question a certain way, but if you make slight changes to the phrasing, ChatGPT can provide an answer. - Employee pushback against new technology: Learning new systems can be challenging for non-tech-savvy workers. If your payroll team isn’t comfortable using AI tools, expect some resistance to it. Also, their learning curve will be steeper than those who aren’t tech-averse. - Potential job loss: One of the growing concerns when using AI technology is that it might result in employees losing their jobs. With generative AI solutions like ChatGPT automating most of the process, payroll administrators may have less work to do than before. Goldman Sachs economists even [predicted the loss of 300 million full-time jobs]( globally due to AI technology. While many employees are worried about the impact of AI tools like ChatGPT in the workplace, some are excited about the improvements it can bring. A Microsoft survey shows that 70% of its respondents [plan to delegate tasks]( to AI to reduce their workloads, while 49% are anxious that AI might replace their jobs.     Is ChatGPT Worth the Risk?   Compared to popular payroll systems that have been in the market for several years, ChatGPT is a relatively new tool. It might be prone to technical bugs and glitches that may affect your payroll timeline if you rely solely on it to compute employee payments. And while it’s great if you want to check calculations and tax guidelines, nothing beats having an expert handle the complexities of paying employees and managing [payroll compliances]( for you. You can also partner with a software provider that offers an AI-powered payroll platform to streamline processes.     There are pros and cons to using ChatGPT to process payroll. To ensure that you’re paying workers correctly, it’s best to use a solid payroll system like Intuit’s QuickBooks Payroll. It not only comes with unlimited and automatic pay runs but provides compliance tools, HR support, and access to employee benefits. Sign up for a QuickBooks Payroll plan today and enjoy either a 30-day free trial or discounted rates. [Visit Intuit QuickBooks Payroll](     What’s Hot In HR This Week Check out some of our latest HR content:   [Best Payroll Services for Small Businesses]( The best payroll services—such as online payroll software, professional employer organizations (PEOs), and human resources (HR) systems—help businesses pay workers, manage tax withholdings, and withhold deductions. This guide contains nine of our recommendations for small companies. [READ MORE]( [Global Employee Benefits: A Small Business Guide]( This guide dives into what global employee benefits plans generally include, why they matter for your small business, and how you can build a comprehensive benefits package to gain a competitive advantage. [READ MORE](     Meet Fit Small Business’ HR & Payroll Experts   [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Throughout her career, Heather has worked to help hundreds of small business owners manage many aspects of their business, from bookkeeping to accounting to HR. Her experience has allowed her to learn firsthand the payroll needs of small business owners. Heather Landau [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Jen has more than 20 years of writing and content experience, working with small businesses and Fortune 100 companies. She worked as an HR generalist for over a decade, providing accounting, payroll, and HR expertise. Jennifer Soper [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Robie is a payroll and HR expert at Fit Small Business, focusing on software. She has over eight years of content writing experience, handling different topics. Robie also worked as an HR specialist for 10 years where she managed various facets of HR—from payroll and benefits to employee services and HR systems. Robie Ann Ferrer [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Juvy has more than 10 years of experience writing product reviews and providing online content for small businesses. Juvy was also a college instructor. She believes that her teaching background, writing experience, and supportive team members are crucial in providing the best answers to readers. Juvy Vallescas [-Jennifer Hartman, HR Staff Writer & Human Resources Expert] Genevieve has more than 13 years of writing experience, working with different clients in various industries. She has ghostwritten several books and ebooks on marketing and leadership. Genevieve also worked as an HR Head of a local manufacturing company and has helped small businesses set up their business and HR processes. Genevieve Que     Want to learn more about diversity, equity, and inclusion (DE&I) and why is it important for your business? Check out next week's newsletter for our guide to everything you need to know about DE&I. Until next time, Heather Landau, Jennifer Soper, Robie Ann Ferrer, Juvy Vallescas, and Genevieve Que   For more quality resources on growing your small business: [Marketing]( | [Financing]( | [Accounting]( | [HR]( | [Retail]( | [Ecommerce]( | [Sales]( [Facebook]( [Twitter]( [LinkedIn]( [Alternate text] Want to change what you receive in your inbox? [Update Your Preferences]( [Image]   We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. 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