A
deficient Payroll Processing System
not only costs financial loss for an organization but also their manpower’s
engagement and productivity resulting further loss. According to a 2014 study
by Deloitte Consulting on Payroll Operations Survey, organizations face three
major challenge while implementing a payroll processing system, including:
●
Manual processes (23%)
●
Accuracy and timing of inputs
(21%)
●
Non-standard or complex processes
(17%)
With
several companies trying to implement an efficient payroll system, it is must
to consider these factors into account for long-term goal fulfillment. However, Outsourcing Companies that specializes
in payroll services can also work. But, if you are looking to have an in-house
payroll system, consider below mentioned pointers while implementing and
improving the same.
5 Steps to Improving Organizational Payroll Process:
1. Taxation Policies
Payroll
system is prone to penalties if miscalculated. Failure to comply with IRS
Payroll regulation can lead to higher monetary penalties and can even lead to
legal actions. Those looking to avoid legal actions needs to fix errors while
remitting every due payment to the IRS along with the penalties.
For
a company trying to create an efficient payroll processing system it is
critical to understand the importance of taxation policies and state plus
national tax regulations along with using the same as the backbone of their
payroll process. Keeping a regular check on changing federal norms and updating
the same within a payroll system is also important. An employee handling the
payroll system needs to have an updated knowledge of the same as failure in
doing so may cost their company a federal penalty.
2. Regular Auditing
In
order to have an efficient payroll service, you need to perform regular
auditing and fix any inaccuracy that can cause delay at work. Keeping an eye on
the workflow system helps organization fix a glitch a payroll processing system
easily. Mistakes can happen anywhere anytime irrespective of having an
automated workflow in place. General audit mistake includes incorrect employee
ID leading to incorrect salary or tax calculation.
Auditing
errors can be prevented by cross-checking the entire payroll workflow for
accuracy and ad-ons like automated attendance system. Regular training of staff
also helps while updating a payroll management.
3. Simple and Transparent Payroll Policy
A
complicated and twisted payroll system is the prime factor contributing towards
major errors. When employees fail to understand a payroll management they tend
to do more mistake. It is extremely important to provide a clear understanding
of every payroll law that is being implemented within the system. As a company
it is management’s responsibility to provide clear understanding of such
process and incorporated rules to their employees.
Having
simple and transparent payroll management policies can also help organizations
solve loads of technical and manual errors. Numerous payroll problems such as
underpaid tax or employee mis-classification can be avoided by implementing a
transparent payroll policy on the floor.
Payroll Policy must be able to solve following employee
issues:
●
How entire payroll process works?
●
How employees are being
classified?
●
How salaries are being calculated
or determined?
●
How employees can rectify a
payroll mistake?
●
How promotions and overtime wages
are calculated?
It
is vital for the companies to not only clarify this information in writing but
also in their briefs.
4. Ask Your Employees
Having
a transparent policy enables employees involve their employees and create
communication doorway among employee & management. While having frequent
conversation with employees help management resolve confusion and
misunderstanding regarding payroll policies.
By keeping a regular check on what works for employees help management
create better work conditions and policies for their entire workforce which on
the other hand enhances employee engagement within the firm. Employees feel
valued and respond by being more productive at work.
5. Outsource an Expert
With
the help of above-mentioned tips organization can easily create a
highly-engaged payroll processing system
for their employees. But for those who are looking to have an efficient payroll
process without investing much time or money needs to hire outsourcing
companies providing payroll management functions. Few most common functions
includes: payroll tax preparation and filing, year-end tax distribution, check
printing and garnishment administration.
Outsourcing
companies not only enables companies to leverage the expertise of a payroll
specialist but also reduces administrative cost involved in creating plus
maintaining a payroll function. Everything is taken care by a third party
corporation at minimal cost. However, while outsourcing companies organizations
must research over the services and package for the benefit of their
organization.
For More Details: http://finstemoutsourcing.com/
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