Payroll is something that doesn’t seek for any specific scale or size of an organization for its perfection. It is such a part of an organization that necessarily requires to be perfect and responsive, irrespective of the number of employees in it.
The reason being, it indirectly affects the livelihood of employee’s families.
Salary, at least, is the most important part of payroll, and the sole life-runner for more than half of the employees could not be suspended without a legitimate reason. It could not be suspended even due to a smaller legitimate reason however, it requires something fishy to put a pause on it.
There could be a hundred employees, and there could be just one employee as well, the payroll process has to get completed by the end of the monthly period decided by the organization. But if it is done traditionally, it would become quite hectic.
Thus, we are going to see how HR solution made payroll easy and have resolved this problem up to an extent.
Let us first clarify the meaning of what the payroll is, and what else than just salary making, it includes? As many of us assume that payroll services are all about salary making only.
What Is Payroll? What It Is All About?
Payroll is a part of treasury management in which all the payments including salary, bonuses, and benefits like claims are to be calculated within the month usually but sometimes on an hourly or weekly basis as well.
Payroll includes payments that are to be given as well as those too which are to be deducted from the employee’s end e.g. garnishments, leave deductions i.e. loss of pay, penalties due to any particular reason, etc.
Nevertheless, let us move onto how HR solutions make payroll easy and convenient? And explore why payroll software is important for boosting an organization’s efficiency?
Human capital solutions are designed to accommodate HR staff, whose one role is to manage payroll. Now, the payroll services and its dedicated solutions are already available in the market, but smarter HR solutions went popular and brought up the trend for an all-in-one solution that includes payroll as well as other HR stuff like compliances management, succession planning management, benefits administration, talent management, etc.
Solutions that could offer more than just one service and are capable of rendering the same level of service expertise can be termed as an all-in-one solution for Human resource management.
As far as just payroll software is concerned, let us churn out some facts that proves that payroll software is important for boosting an organization’s efficiency-
- If we talk about the scale of an organization, small-scale enterprises face issues regarding payroll as they don’t have a dedicated payroll sentient or personnel to handle it.
However, large-scale enterprises deal with it by having a dedicated team for payroll only but that too increases the risk of payroll hazards if the team has to manage payroll typically. The mid-scale enterprises play the best by outsourcing payroll services from the market. Now, what matters here is, to face the least risk, and to get the job done. A small-scale enterprise could hire a person for payroll, but it would rather cost almost equal to the software deploying cost. It would rather save the company from possible manual errors and keep the payroll process fast and accurate with all the rules and deductions programmed in an automated manner.
- To keep the trust maintained for the company, payroll plays an important role by keeping a standard and maintaining the brand value by being regular and advanced in time. The employees notice the fact how agile the company is, regarding the payments and offerings. Not only the salary but also the other bonuses and benefits are parts of payroll, which needs some agility when their time comes. And only expert payroll personnel or payroll software could manage to do so.
- Employee recognition is a part of corporate culture and an employee could feel retarded from the company if it misses the chance and appropriate time to appreciate the employee through monetary rewards or other ways. Payroll plays a role here by calculating and evaluating the performance of an employee through a year or a month.
- A payroll team could help in keeping the company’s reputation maintained over the employee’s heads as well as in the market through word of mouth. But the risk factor would still be there even after having the entire payroll team for responsive payroll services.
- If the same is being done physically, which means not through online medium, the payment of money is to be done through cheques and physical signatures too were required. Risk and time, both are key factors that could be mitigated with the help of payroll software.
- However, payroll software might be a costlier asset to hire, but the headache to be weighed in the case of wrong or incorrect state tax deduction from an employee’s salary, and making the one to agree for the larger deduction from the last salary is way heavier than just a one-time investment it asks for.
Companies hire software to accelerate their work processes and save time for their valuable employees who could invest the same at some other valuable work and develop their skill sets.
Payroll software is the most advantageous of all because it indirectly weighs the name and brand value of the company. It saves not only time for its employees but also builds value in front of its employees by representing the company as employees caring and understanding for their overall needs.
It is wiser to save the company from any sort of audits, penalties, double-checks, and other issues that are born of human error and also are very susceptible to happen. Make sure to hire such software which has all the deductions involved in it like garnishments, etc., and not the one that just offers the salary making and basic deductions feature only.
It is on the company to either play smart and invest for its own sake or to weigh the burden on possible errors and the consequences by not relying on automated software.
Author’s bio: Scarlett is an adept content writer and is associated with Accomplish from the beginning. She has worked with edi solution providers and is often found struggling with some unique topics like benefits administration software, HR analytics tools, and Insurance management for her upcoming projects. She participates also in the discussions over the information exchange and the technologies in-trend around it. When not working on any of her writing projects, she is either reading any of the Agatha Christie mysteries or busy gardening.