According to estimates, labor expenditures may account for up to three-fourths of total expenses. What’s even surprising is that payroll takes the major share of that enormous expense.
Worse still, payroll expenses go well beyond the rate of pay you offer to your employees. And things like taxes, payroll-related charges, and employee benefits, amongst others, are all included in those expenses.
You’re underestimating how much effort and time it necessitates, and how much of your inputs are worth if you believe that handling payroll directly is the answer to cutting those expenses.
You see, payroll should not be complicated. The trick to handling payroll with ease is understanding that it only has to be simplified. You don’t have to devote any time for it. With that said, let’s see a few ways you can go about simplifying payroll.
Employee Time-Tracking Must be Integrated with Payroll
You should seriously consider combining your payroll and employee attendance and time tracking into one system if you constantly find yourself needing to export employee attendance and time-tracking information from a single system to your payroll software.
Integrating such systems or finding one platform that seamlessly connects all facets of employee management will lessen data errors, mistakes, and ambiguity.
Changes will be simpler to implement, and it pairs perfectly with automated systems and processes where workers have a vested interest in accurately reporting their days of work.
Don’t Forget About Employee Benefits
It’s no secret that managing employee benefits can be challenging. Today, some businesses even go so far as to claim that they outsource the administration of their payroll and benefits to other third-party HR service providers.
There’s nothing wrong about working with different partners as long as they permit free movement of data between two different platforms. If they don’t permit it, you could have to manually record personnel data in several places, which takes effort, time, and let’s not forget the possibility of mistakes.
You should always try to club your employment benefits administration with your payroll system, if that’s at all possible. To save time on generating periodic performance reports, it would be even better if you could combine your payroll and worker’s compensation providers together, or find one platform that can do it all.
Focus on Eliminating (or Reducing) Errors as Much as Possible
What is the ideal scenario that every employer dreams of, when it concerns seamless payroll processing? That it would be great if there were no errors.
But, like it or not, errors do happen. Automation can help. But whether automation manages some or all of your payroll, you must think about creating and implementing checklists.
Why do that? Checklists are notorious when it comes to cutting down on mistakes as a result of the paucity of time. It’s simple, really; following the checklist will ensure that no detail is overlooked.
Making a checklist, at the minimum, helps you break into steps the task of you’re undertaking, and what you have to achieve. Creating a checklist might actually show you which methods you can omit, and which you ought to add.
As a general guideline, you should make sure that your checklist includes and goes into detail regarding routine payroll inspections to verify legal compliance and correctness.
By following this guideline, you may bypass a great deal of hassles, including hefty fines, penalties and legal proceedings. Consult your finance department to know if they routinely engage in such activities. You may even go as far as encouraging your staff to frequently audit their pay slips and let you know if anything seems off.
Furthermore, if you can, try to incorporate a double-check system wherein an individual handles some of the payroll responsibilities while another completes and verifies everything is in order. By setting up such a system, your organisation should be able to identify problems before payroll is processed and employees are paid.
While improving payroll processing and management for increased efficiency is crucial, you should always take care to avoid upsetting your staff.
In reality, finding ways to optimise your organisation’s payroll process does not really imply that you can’t still arrive at strategies to surprise and please your staff with payroll.
For instance, you can help them understand taxes, provide financial assistance (or advice), come up with inclusive employee benefits and so on. These are all ways to keep your employees central to everything, even when you’re fine-tuning your payroll.