The employment landscape is evolving rapidly, and payroll significantly impacts a company’s profitability and employee retention. Additionally, a large percentage of employees revealed in a survey that they would experience financial difficulty if their payments were delayed by even one week.
Besides, HRs and finance teams can easily manage the entire payroll operations lifecycle with the right payroll management system. This guide covers some key features of a good payroll management solution.
What is a Payroll Management System?
Companies use a payroll management system to manage employees’ wages, deductions, and benefits. The primary objective of using such software is to provide efficient and accurate salaries to every employee on time. In addition, it also assists in tracking their working hours and tax filing.
Studies say 49% of employees experiencing two paycheck errors will likely leave the company. Consequently, a company must avoid making mistakes with employee paychecks or payment delays. Because of this, you might lose employees, which can further hamper the business performance.
An effective payroll management solution solves these hurdles for organisations.
A few notable responsibilities of payroll software are
- Keeping employees’ information updated
- Generating payslips
- Calculating employee payments
- Managing leave deductions and overtime adjustments
- Identifying tax liabilities
If you need more secure and comprehensive assistance, you can always contact the 6 Pence team!
What are the Key Features of a Payroll
Below are some key features of a good payroll management system that you must consider.
The payroll software you choose must allow you to calculate bonuses, employee expenses, overtime, and holiday pay. Consequently, it will allow you to easily print employee paychecks and prepare regular reports that give insights into the overall business operations.
The payroll management system must manage your team’s direct deposits without making you worry about payments. It will pay your employees automatically and correctly on time while reducing the chances of manual errors.
Besides, direct deposits make payday easier for HR.
Time and Attendance Tracking
A good payroll solution integrates with time and attendance tracking applications to provide insight into employees’ time sheets and attendance records. As a result, HR can keep track of the employees over time and leave deductions.
Thereafter, the issue of monthly wages becomes sorted and seamless, thus, saving time and unnecessary problems.
The payroll software must help you with tax calculations, insurance and retirement contributions, withholdings and related tax calculations. It will save your HR team time finding each employee’s tax payments and deductions throughout the year.
Most payroll solutions allow employees access to their data and update them regularly. It promotes transparency and empowers employees to handle questions and make changes independently.
Employees can view their payment history, change personal information, and change preferences as needed.
Presently, if you adopt 6 Pence’s payroll management system, your employees will get access to our HR e-service portal. This allows for 24/7 access to employee data.
7 Benefits of a Payroll Management System
Using a payroll management system is highly beneficial for any company looking for ways to retain employees and stay stress-free with monthly salary disbursal hassles.
Listed below are some of the benefits of a payroll system.
The first and foremost purpose of using HR and payroll software is to avoid manual tasks that leave doors open to unintentional mistakes that are often costly for the company. A payroll management system can automate your complex and simple payroll tasks and empower you to tackle its entire lifecycle better.
Besides, it allows you to work on payroll calculations and deductions quicker, generate accurate pay slips, and more.
Handling Payroll Expenses
Payroll is always a recurring expense for any organisation, which means if your business grows, your payroll expenditure increases. Further, it is one of the largest monthly contributors to a company’s profit and loss statement.
With the help of the right payroll software, you can generate all these reports timely. Finally, it lets you track all your expenses, including employee salary, bonus payouts, employee benefits, holiday pay, etc.
Making Taxes Look Less Stressful
You might have heard about businesses closing down or being penalised for non-remittance of taxes. Use a modern payroll management system if you don’t want to be one of them. It helps you adapt to the changing tax laws, control your employee contributions, choose statutory applicable to your business, and more.
Moreover, you can stay confident in making accurate tax deductions.
Furthermore, they reduce the burden of compliance and remove the need to understand complex tax legislation.
Easy Integration with Other Applications
The finance team or HR needs to coordinate with other departments for different inputs during payroll processing monthly. These processes are usually complex and time-bound; they tend to get tougher as businesses grow.
Securely integrating attendance and payroll management systems allows you to access real-time data in one place.
Securing Payroll Data
Payroll registers contain vital employee details, including salary, taxes, and bank details. Payroll software can enhance the security of your stored payroll data and finely-grained access controls. Further, it allows you to differentiate between different roles in each department and eliminate unauthorised access.
Timely Salary Payments
With effective payroll management, companies can pay their employees at the right time, which increases their retention rate and improves productivity.
One of the significant benefits of implementing payroll software is to eliminate the use of paper. Paperless technology reduces costs and is environmentally friendly.
Maintaining data electronically minimises the chance of making mistakes or losing essential details about your employees and payroll data.
Popular Payroll Management System
Businesses of all sizes use payroll software to automate all payroll processes. It simplifies setting up direct deposits, withholding payroll taxes, and keeping precise records to avoid fines. Manually doing these tasks is time-consuming and error-prone.
Some of the top payroll software are:
- Paychex Flex
- 6 Pence payroll outsourcing solution
Also Read : Senior Financial Accountant Job Description 2023
How Does 6 Pence Help with Payroll Management?
The payroll process in a company is a challenging task to handle. It can be made easier by investing in a payroll management system or by outsourcing the task to competent, qualified, and experienced professionals.
The payroll management system in any organisation saves the owner’s time in calculations and processing while paying employees on time and retaining them in business for a long. However, you must invest carefully in a system fulfilling your payroll requirements.
At 6 Pence, we offer payroll management services to our business partners in Iraq, Bahrain, Oman and Dubai. By outsourcing your payroll process to 6 Pence, you can better work towards creating budgets for your company’s growth, R&D, and other important tasks.
With 6 Pence, you are guaranteed 100% legal and local tax compliance, confidentiality, and detailed payroll management. Every business partner has a dedicated project manager and no third-party intermediaries, thus reducing the chances of data leaks and errors.
We monitor every facet of the payroll process, from new employee onboarding to employee exit, leaves taken by each employee, and even OT expenses. Through our 24/7 e-HR service portal, both employers and employees can access their necessary documentation in the blink of an eye.
Connect with us today to learn more!
Frequently Asked Questions
What is payroll management?
Payroll management in a company is the administrative task of paying employees for the services rendered. It offers a financial record of employee gross earnings, payroll deductions, payroll tax liability, and net pay.
What is the role of HR in payroll management?
HR in payroll management involves releasing employee salaries, depositing dues with appropriate authorities, and filing returns. Payroll processing in the organisation includes calculating the employee’s net pay after the tax adjustment and deduction.
What are the steps in the payroll process?
The steps in the payroll process include
- Collecting worker information.
- Setting up a payroll schedule.
- Tracking work time and money owed.
- Issuing payments.
- Keeping accurate records.