Optimizing Payroll: Common Issues In Pay Management
There are a lot of businesses today that are still having trouble with their payroll processing, this includes errors in tax deductions, inaccuracies with pay computations and many others. There is a lot of room for improvement. The good news is there are solutions. The bad news is, if you do not know you have salary issues, you won’t be able to implement corrective actions. Here are some things you might be struggling with right now in your salary processes. It wouldn’t hurt to look into these.
Ineffective handling of information
Believe it or not many organizations are still finding it difficult to have a smooth and efficient system of handling employee information – which includes pay and employee records. This is especially true if the organization has multiple locations and the records are not kept and updated in a central location. You can be sure there will be inaccuracies in the files.
A payroll software allows businesses to have all the records in one central location. The increasing popularity and security of cloud storage adds to the usability of these online systems. Now even if you have multiple locations, employee records can be kept and updated centrally.
The best news? You can go away from tedious paper files. Ditch the filing cabinet and say hello to access-everywhere payroll management!
Tapping into technology for payroll management is simply not enough. You will still be inefficient even if you have an online HR information system if this does not integrate with your payroll software. And even if you have a payroll software you can still encounter problems if your biometric device does not work well with it. These are just two of the most common issues of tech incompatibility.
It is important to have a software that is flexible enough to integrate with other system available in the market. Even bundled software is a good choice as you are assured it is all integrated with each other. Planning to buy into technology-empowered payroll tools? Mind its compatibility with your existing systems.
The human factor
The administration of payroll often traces most of its issues on human error. Miscalculation of pay, missed deductions, even the wrong application of rules and policies during preparation of pay are just few examples of the problems often seen when there is human intervention somewhere in the process.
By having a payroll software, you can easily compute everything all in one go. Daily attendance is fetched from the biometric device, daily rates are taken care of, tax withholding are accurately applied, other governmental deductions are also managed automatically, even employee loan repayments are taken into account. With everything done through a software, accuracy is at 100%.
Employee absences can become a real pain especially when you are dealing with a huge workforce. For one, absences have various types, some are charged to leaves, for some companies these can be from off-sets from special work days. With all these variables all in play, you need a system that can easily track the details of the absences so that when payroll is made, errors are reduced if not eradicated.
It all comes down to having the right software solutions for your payroll processing. The system you use must have the right tools to address all the details of an employee’s attendance and how his/her pay is computed based on applicable rules and exemptions.
The software that you use must be compliant to the rules set by the government. Sometimes there are changes to the laws and you must follow these or face penalties. Perhaps the best example for this is using a software that is already TRAIN-ready. This simply means that the tax computation is according to the new provisions enacted by the government. Are you compliant now? Be sure about it!
Cost of possible solutions
Improving the efficiency of your payroll management will cost you money. You can either invest in a software, hire additional payroll specialists, or outsource payroll processing. Of the three possible solutions, the most convenient and cost effective would be investing in a payroll software.
Hiring more people to take care of salaries still won’t address the accuracy issue. Outsourcing the whole process can be pricey. But using a subscription-based payroll software can be cost efficient and accurate, especially if it is designed with the entrepreneur in mind and where he operates his business. There are even systems that would just cost you around P7.00 per employee a month. Now that is leveraging technology for business efficiency!