Web-based Payroll: Should You Make the Switch?
22 Jul 2021
In today’s digital era, most HR departments would have ditched paper processing and successfully gone digital. While there may still be a handful of companies out there that are still using a paper-based payroll system, it is clear that those who embraced technology are reaping the benefits.
Besides enhancing workflow efficiencies and accuracy, companies who opt for a web-based payroll system are more likely to have improved compliance documentation.
What is a web-based payroll system?
Web-based payroll, also commonly referred to as online payroll or cloud-based payroll, is a software application that runs payroll calculations and payroll reports online. All that is required is a device with internet connection in order to run payroll anytime, anywhere.
Switching from a manual payroll to web-based payroll can save your business time, money and frustration. An online payroll system offers a cost-effective and environmentally-friendly way to simplify your payroll processes. Concurrently, it also helps to ensure compliance with local payroll legislations and labour laws. If you have yet to make the switch to web-based payroll, here are some reasons why you should consider:
Reduces paper waste and frees up precious space
Payroll processing is a tedious process and there is no denying that manual processing just makes it more painstaking. By leveraging a web-based payroll system, it eliminates the need for paper altogether. This means no printing of payslips, no punch cards or paper timesheets.
Embracing a digital payroll system also means freeing up valuable office space. Given that sensitive and confidential payroll documents are now accessible and stored online, this means that there is no need to worry about important documents being destroyed in a fire or getting stolen.
Improves payroll security
Paper payroll records may be worrisome to some as this means that there is something tangible for people to touch and keep. With a reliable web-based payroll platform, digital payroll records are much more secure than their paper counterparts.
Enhancing your web-based payroll platform with multi-factor authentication or backup passwords help to add an additional layer of security on your payroll records. A digital payroll platform also allows for permission layers on who has accessible to historical or current payroll records to be imposed. This allows HR to effectively track who accessed payroll records, what was done and when.
Drives operational efficiencies
It can be time consuming when you need to sieve through manual paper records to search for important information. Even if everything is well-organised in the filing cabinets, you will need to know specifically where each file or folder is stored. With digital records, you do not need to know exactly where each information is stored. Just a simple search via the respective file folders will usually do the trick.
Similarly, web-based payroll means that there is no need for paper payslips, hardcopy employment contracts, or physical medical chits. This can save HR a tremendous amount of time from having to print these payroll details.
Offers employees self-service capabilities
Besides taking away the administrative and time-consuming aspects of payroll processing, web-based payroll also benefits employees by providing self-service capabilities. This helps to outsource some of the tasks that HR has to support employees on, such as viewing of payslips, leave balances, or submission of leave applications. A web-based payroll allows employees to access their own payroll and employee information without having to bother the HR department. Not only does this offer a sense of independence on the employees’ part, whereby they are able to take charge of their own HR and payroll matters, it saves HR time from having to address commonly-raised HR queries.
Facilities easy accessibility anytime, anywhere
By using a central online system for your payroll processes, this simply means that HR can easily access payroll records anytime and anywhere. This is particularly useful when having to deal with remote workers and employees that are spread across various countries. All that is required is an internet connection and HR can easily process payroll even while on the go.
Seamless integration with other business applications
The best part about web-based payroll is that it opens up the possibilities of integration with other business applications, such as accounting software or expense management software. This helps to streamline certain workflows and minimises data entry errors from having to transfer payroll records from one application to another.
Some web-based payroll software also comes with features that allow for integration with third-party applications, such as statutory boards portals. Such integration facilitates seamless transfer and submission of data which increases speed and accuracy without the need to access or input data across multiple applications.
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