Does it take you ages to process payroll?
If your company has special rules for salaried employees, complicated pay policies and complex job rate assignment, among other payroll related activities, you’re probably spending a lot of your week processing payroll. The most frustrating thing – you are always crossing your fingers that no corrections will ever be needed. It gets even more complicated when new overtime rules gets into effect especially during the end of the year.
There are so many reasons that would trigger you to invest in payroll software. It not only helps you run payroll with a push of a button but also helps a business to automatically collect all the employee data and apply all the necessary rules and calculations in a fraction of time.
What are signs that your business desperately needs to purchase integrated HR payroll software?
1. Your multiple systems are not getting along
Probably you are running two or more systems in your business to capture employee data. Instead of making your work easer, these systems stick you with tedious data error tasks that are prone to errors. How would payroll software help the situation? Unlike the separate systems, an automated, integrated system pulls all your employee data from each of your systems for processing and outputs it in the format of your choice.
2. Not sure whether you can rely on that spreadsheet full of macros
The fact that you can use macros in spreadsheet software to do just anything can be very tempting. But the challenge is, macros can get so convoluted that it becomes hard to tell what’s actually being calculated. If you have ever used spreadsheets, you can attest to how notoriously unreliable macros can be. Plus, spreadsheets are also susceptible to data corruption such that if you make the wrong change to micro or a single incorrect formula, you are likely to mess the entire payroll software.
3. Managers are no longer managing employees, but payroll
The ugly bit about manual paycheck system is the amount of time managers spend on payroll. If you realize your managers are burning gazillions of hours on payroll, it’s time you need to change. The money and time resources you are putting up for that could be used to run other equally important tasks.
By implementing an automated system, your managers will have ample time to focus their real recruitment consultant jobs London. As a result, it cuts the operational costs and improves the efficiency of payroll process. on
4. You are afraid you might mess up with someone’s paycheck
It’s human nature to make mistakes. That’s something we can’t avoid entirely. The problem happens when you make misallocated payments. The legal ramifications – legal action, fines or settlements – that ensue can be huge to bear. If you are afraid you might make mistakes along the way, you need to think about automating the process so that all pay policies and tax-related regulations are correctly applied every time you are processing payroll.
5. High employee turnover rate
Does your company have high employee turnover rate? That’s not solely a HR’s problem; it’s also a management problem. But here is the challenge: the turnover rate affects the performance of your department. For you to adequately and sufficiently process payroll, you must keep up with all employees leaving and joining your company at different times of the month.
Unlike the manual payroll processing, using an automated HR payroll software solution takes the pain away by making it for you makes it easy for you to track down bonuses, deductions and commissions during the same period.
6. Generating management reports take time
Apart from processing payroll, providing your line managers with information they need about their team’s performance is one of HR’s core deliverables. Your HR department needed to provide these reports in the forms of hours late, month-on-month scorecard on absenteeism, costs comparisons for same period with previous year, among other things.
The tragedy happens when these reports are not delivered to managers. As a result, managers won’t be able to tell how their direct reports are performing. To avoid getting yourself in that mess, you need to invest in a good payroll software that can automatically generate and send these reports to managers.
7. The bug of inaccurate tax reporting
Yes, the complicated tax system can be intimidating. But, it is something you (and any other business can’t avoid). Why? Because everyone working in your organization gets paid, they must pay tax from their earnings. For instance, the most tax system requires that you provide your employees with a payment summary (and that includes taxes and all statutory deductions) at the end of each financial year.
So, what happens if you are always providing wrong information to employees? That means they could have submitted wrong information to the tax authorities. Or probably paid less or more tax to the authorities? While you may request for refund in case they overtaxed you, who will shoulder the taxed owed to the authorities in case they paid less tax? That’s a good indication you need a better way to organizing your payroll system.
8. Lack of visibility
Is your organization planning to have a satellite office, or you already have one? Thanks to globalization, it becomes easier to outsource both support functions and workforce from different parts of the world. And these are some of the trends that your business cannot ignore. Investing in the best payroll software will, in this case, guarantee you better visibility you need while processing payroll.
9. HR/Payroll staff to employee ratio is below than 1:275
The best ratio of payroll staff to employees stands at 1:275, that’s according to the latest bench marking report by the Australian Payroll Association. Is your organization beyond that point and yet you don’t have sufficient resources to bring in more payroll staff? It’s high time you need to integrate automated payroll software solution for your business. Payroll is not only cheap – there are both free payroll software in India and competitively priced premium versions – but also increases the efficiency in which payroll is processed in your company.
10. Organization planning to grow support functions
Everywhere around the world, businesses are working hard to transform main functions and strengthen all core functionalities. Your HR department isn’t an exception. And purchasing the best payroll software is one of the ways your business can transform its functionalities for increased productivity.
Payrol processing is one of the core functions for the HR department. If you taking you too long to process payroll or are making far too many errors along the way, it’s time you need to invest in payroll software. Otherwise, you not only risk making errors in payments, but also making costly mistakes that will spook the authorities.