Payroll Processing Isn’t Difficult – Use A Payroll System To Help You
21 Oct 2020
Payroll systems can help organizations minimize unwanted errors and penalties due to missed deadlines or incorrect figures. This can help to improve efficiency and reduce potential errors arising from manual computation. Below are some ways a payroll system can benefit businesses.
Collect preliminary information needed to process payroll
Employee contracts, contact information, salary details, bank account number – these are some of the key components required for payroll processing. With the help of payroll systems, organizations can easily manage large amounts of data on a single platform while maintaining accurate and updated employee records. As some of these records involve sensitive data such as personal information, it is crucial to establish proper record keeping. Organizations can avoid compliance issues by configuring the payroll system to allow only authorized personnel to access the information.
Automate payroll computation
Payroll computation can be complex and time consuming if done manually. Manual computation can also increase the risk of human errors, which may lead to costly mistakes for businesses. Through automation, this helps to streamline the computation process and increase the accuracy payroll calculations. With a payroll system in place, businesses have a manageable overview to keep track of the attendance, bonus payment, overtime pay and leave applications. HR personnels can free up more time and resources spent on payroll calculations and place more focus on developing human capital.
It is mandatory for employers to help employees file their taxes according to the country’s laws. Failure to properly report payroll contributions can result in additional fees and penalties for the business. Statutory filings can be very manual and repetitive for HR personnel as there are different types of tax filing requirements depending on the employee’s country, age or employment type. Automation saves significant amounts of time and effort by consolidating data from different sources to capture the relevant information. HR personnels can retrieve records easily and generate reports digitally within seconds. Payroll systems can also reduce the possibility of fraud and help improve the quality of data management. This is especially important from an audit perspective. The system can ensure that tax deductions and contributions are compliant and made on time, while allowing businesses to easily organize and document the information for audit purposes.
Salary payment and payroll schedule
As a business, you are legally obligated to pay employees their salaries and may be charged if you are unable to do so. Depending on the type of employees you hire, part timers, full timers and shift workers may require different payment structures and schedules. It can be overwhelming for HR personnels to manage multiple payroll processes manually and this creates a lot of room for error. Payroll software allows organizations to manage multiple types of employees and payroll schedule with weekly, biweekly or monthly options, all on a single platform. Some software also enables automatic direct deposits once the payment schedule and reports have been set. This helps to streamline processes and ensures that timely payments are made.
Payslips issuance using payroll system
Many payroll software programs are able to generate itemised payslips effortlessly within seconds while ensuring that it is compliant with all government requirements. With digitalisation, more businesses are moving away from printed payslips to electronic payslips. This not only helps to cut the cost on paper and postage, it is also environmentally friendly and a more secure option for businesses. Payroll software also offers self service options where employees are automatically notified when their payslips are ready for viewing. If there are any updates to their payslips, this can be immediately reflected in the system with a simple click of a button.
Payroll processing can be a tedious task for organizations and while it is one of the core functions of a business, it is not necessarily revenue generating. With automation of low value tasks like data entry, payroll software helps businesses streamline the administrative processes while keeping track of operational costs. This allows businesses to focus their efforts on analyzing and developing insights for the entire organization.