October 17, 2018 / mcacao
Payroll is one of the most tedious tasks a company can have especially if they have a lot of employees. This is why companies usually either outsource payroll or have their own in-house Payroll Software to make everything much easier. And because an in-house Payroll Software can be a cheaper alternative in the long run, we will be looking at how Payroll Software can solve some of the major problems companies have with payroll.
A Payroll Software is an intuitive tool that helps companies by taking care of the tedious calculations that need to be done before employees can get their paychecks. These calculations include tax deductions and withholding taxes, benefits, leaves, and others. Some of these values can be automated by inputting all information regarding the employee and their wages and benefits, which saves a lot of time and effort on the part of the company, even though other values, like leaves, should be put in manually.
Why your HR needs a Payroll Software
The truth about payroll is, no one really wants to do it. Getting it right manually can be a daunting task and takes up a lot of time, and miscalculations, missed deadlines and regulatory changes are always hovering behind those making the payroll. These issues are not to be taken lightly. In fact, this is where many business owners and companies may have problems when they miss a crucial point.
In a perfect world, every employee has the same salary scale, the same benefits and deduction, and a regulation in stasis. But that is not the case. In the real world, there are a lot of information that needs to be taken in by the company before they can give their employees’ salaries. A good Payroll Software will help you manage different salary scales, benefits, rules and regulations, and deductions so that you will not have to worry about a miscalculated payslip given to an employee. As the software can immediately calculate an employee’s wage based on the basic data and other variable inputs, there is little to no room for human error to occur.
Payroll is an administrative burden on a company: that is to say, manual intervention on manual payroll is always required so that it consumes the time of HR practitioners. Sometimes, manual payroll systems can become so tedious, employees get paid late just so that a company won’t make any errors. Automation solves that situation as integrated payroll systems are able to track employee attendance, provide crucial data, and automatically calculate employee wages once all adjustments are made. This ensures that payroll managers increase their efficiency and give their employees their wages on time since all they have to check are the data that they manually put in and not the entire calculation itself. They also don’t have to check for regulatory updates that can shuffle and change their entire payroll all over again as Payroll Software usually handles that.
Errors in payroll are not only an inconvenience to both the employee and the company, but it could also cost the business a lot of money because of infractions in various law compliance demands. Integrated payroll platforms that are normally updated to the latest laws and regulations can help the company reduce such risks as it is able to compile and apply the different and changing laws in different industries and businesses as a whole. With this, companies can be sure that they are up to date with the latest changes from their lawmakers and avoid any problems that might come up with non-compliance.
A huge relief for both HR and the company
Having a good Payroll Software at the hands of capable HR practitioners can go a long way in helping the company reduce its costs and increase efficiency. With manual time-consuming tasks automated, HR and top management can then focus on other tasks and strategies that can further improve the company.
With the automation of payroll, companies don’t need to worry if they made a mistake in an employee’s payroll or if they can finish the payroll on time. It can also help the HR department become more organized and efficient as the program stores all information about their employees and compiles them into a well-documented file that HR can always go back to whenever they need to retrieve previous information on the company’s employees.