Every business is different, operates differently and may have somewhat unique steps in their payroll services to ensure its efficient functioning.
A little bit of planning and some strategic changes in the payroll management system can help in addressing any loopholes. These improvements can be valuable for your business. Here are some ways in which you can improve your existing payroll process.
Ways To Improve Payroll Management System
1. Bring Together Your Pay Dates
Several companies have different pay schedules where they pay the employees on an hourly basis, weekly basis, fortnightly basis, etc. Although it may be a requirement criterion of the company and may perfectly make sense, in practicality, it may cause several errors while processing the payroll.
Reducing the number of pay cycles can help in the prevention of duplication of multiple processes, allowing the payroll sector to operate in a better way. On the contrary, paying all the employees on the same day – monthly, fortnightly, or weekly can help in maximizing the efficiency of the payroll management system. A lesser number of pay cycles allows the payroll department to focus on the pay cycle in a better way. Dealing with a single pay cycle is better than focusing on two or three. It diminishes the chances of errors by a large percentage.
2. Regular Training and Education
Regular training and education keeps the employees updated with the latest norms, rules, etc. Payroll is dynamic as it is ever-changing in rules and regulations. From changes in government employment rules to changes in technology, payroll professionals have to be updated about everything. Regulations related to Employment tax rules also change often. The software used in the payroll also needs upgrades frequently It therefore becomes necessary that the payroll employees are provided with training and education on these topics so they can cope with the changes that are happening. It allows them to process payroll error-free.
3. Upgrade Payroll Software
An obsolete software will often give inaccurate and inefficient results. Keeping obsolete tools and practices only pulls down your payroll process. Leveraging the right tools also keeps you on top of your industry. Old payroll software will be complex and complicated to use, it is also time-consuming, inconvenient to use, and poses security risks. A payroll software that is upgraded as the business grows is reliable and trusted. A good payroll management system should be able to adjust with payroll schedules, qualify factor in all organizational workflows and also be able to provide individual reporting.
4. Streamline Your Payroll Systems
If the payroll software is not in sync with your business’s accounting system, then it can pose a lot of trouble. Using separate systems for inputting, capturing, processing employee hours, tracking, etc. can cause immense problems. These are significant steps where data is often lost or mistakes happen. Streamlining the existing systems can simplify the entire process and can help in the overall improvement of a payroll management system. Businesses often overlook this part and end up wasting a lot of precious time in compiling, overviewing, and correcting the data.
5. Go Green, Go Paperless
One of the main benefits of implementing paperless payroll services for your business is the security of data. Paperless technology is all about expedited services and reduced costs; not to forget, paperless is also being environment-friendly.
Physical paychecks, time cards, pay stubs, etc., are all obsolete and time-consuming. An online portal for managing employee data, attendance, leave management, salary slips, etc., allows your business to go paperless. Maintaining data electronically also helps in reducing mistakes. It also gives more freedom to the employees who don’t have to request for their payslips or submit physical applications to apply for a leave. Everything is done online – from submission to approval.
6. Employee Tax-Related State and Central Rules and Regulations
Businesses are already aware about the fickle employment rules and regulations. Therefore, it is critical for all businesses to stay updated with the compliance rules and regulations set by the government. Failing to meet deadlines, submitting salary taxes, or submitting them erroneously can all be the cause for penalties to a business. In some cases, businesses may also have to face lawsuits. Payroll tax filing is a business compulsion and to do it right, you must always stay updated with the govt. rules and regulations related to employment or payroll. Businesses must appoint employees that are responsible for this. It allows the business, along with the payroll management system, to function smoothly.
7. Outsource Payroll Process
Business owners that are looking forward to save on costs and cannot set aside an additional amount to hire dedicated resources to manage payroll or are unable to invest in expensive payroll management systems, should outsource their payroll to a third-party service provider. Cost is not the only reason why you should consider outsourcing. In fact, there are several benefits of outsourcing payroll. There is a large percentage of businesses across the world, that have outsourced their payroll. It has allowed them to concentrate on their core business and run efficiently.
Benefits of Outsourcing Payroll to Third-Party Service Provider
Outsourcing your payroll offers immense benefits to any business. Some of these benefits of Payroll outsourcing services in India are listed as below:
1. Saves time
Payroll management when done in-house takes up a lot of time. The payroll department, usually managed by the HR team, has to dedicate most of their time to taking care of this. There is a lot of data handling that is involved in payroll, which takes a significant amount of time, drawing away attention from the core business tasks. Outsourcing allows the HR team and the owner of the business to focus on the growth and expansion of the business.
2. Minimizes expenses
Purchasing software, maintenance of payroll software, hiring dedicated employees for payroll, employee time, etc., are all costs to the company. Maintaining a separate in-house payroll department for a small or medium business is costly. Outsourcing the payroll takes care of everything, including salary calculations, tax filings, compliances, report generation, etc. and saves the business a substantial amount of money.
3. Access to Latest Technology
Payroll providers are equipped with the latest cloud-based technology, which offers better transparency and visibility in payroll management system. Besides offering accuracy, seamless payroll management and employee management systems, it also offers data security. This technology is something that a small business would otherwise be unable to have access to.
4. Guarantees compliance
Most businesses struggle to keep up with the government tax rules and regulations related to payroll or employment. Multiple laws, complex rules, changing requirements and dates, different calculations, and many more similar things make it difficult to calculate salaries and taxes. Small errors can lead to bigger mistakes which may land the business in trouble with either penalties or legal cases. Irregularities and errors are something that every business to steer away from. Hiring professional payroll-providing services can ensure that your business is updated with compliance. They are equipped with the knowledge of rules and regulations as they have dedicated employees that ensure all regulatory updates are implemented.
5. Speedy Work, Less Errors
Third-party payroll providers work with highly-advanced software with skilled people working at the systems to handle the data. The chances of any errors are extremely low but if it does happen, they quickly solve it right away. Payroll providers also have dedicated customer care that readily provide you with the help required. They are quick in resolving any queries that your employees may have. With a reliable payroll provider, your payroll management solution in India will always be error-free and efficient.
Outsource Your Business’s Payroll to an Efficient Service Provider
As one of the leading Payroll Management solutions in India, TopSource Worldwide has served more than 1000 customers across North America, Europe, Australia and Asia. We have a self-motivated of 250+ employees skilled in the areas of payroll and IT who have been providing custom services to all our clients. Having worked with a variety of industries, we are adept in the knowledge of different payroll services.
We always stay updated with the rules and regulations and keep you apprised of the compliance and best practices required for your business. Working in a modern infrastructure with highly secure systems, we streamline and optimize your payroll management system, so you are relieved of the payroll burden.