4 PAYROLL MANAGEMENT PRACTICES THAT INCREASE COMPLIANCE

Even as far back as the 70s and 80s, payroll processing was all about performing manual calculations in registers and paying employees in cash. After the introduction of paycheques, employees had to wait for up to a month to receive their earnings. When federal tax withholding complexities were also included, payroll processing became even more tedious and complicated. Today Hr Payroll Software processing has become a specialized discipline wherein any mistakes can result in large penalties for an organization.

Keeping in mind that payroll professionals play many roles, it is necessary for all companies to implement payroll management practices that improve functioning. These are:

1. Evaluation of Timekeeping Processes on a Routine Basis

This begins with assigning appropriate job and role classifications to each position including independent contractors, temporary employees, consultants and part time employees. Job classification is a driving force in tax reporting and payroll management. They influence how federal rules are applied to your organization.

 If your company gets audited and it’s discovered that you had inadequate employee job classification, or employees were underpaid or were incorrectly deemed ineligible for overtime, it results in an accounting nightmare and heft penalties.

Curb this issue by evaluating how employees account for their time on a daily basis. This practice ensures that changes in circumstances or job duties hasn’t warranted an adjustment in job classification.

 To increase accuracy in this realm, companies ought to consider workplace management technologies that will aid this process. From tracking time to attendance, such technologies reduce fraud, ensure compliance with overtime regulations and rules and automates the input of entering work hours into the payroll processing system.

2. Outsourcing Payroll Processes to a Service Provider

Government rules in payroll processing are constantly evolving and changing. This can make it difficult for some organizations to stay abreast with the latest developments. By outsourcing your Payroll Hr Systems requirements, you will save lots of time and money.
 In addition, you don’t have to worry about staying current with HR regulations. Third party HR service providers are experts in processing pay-period data, generating reports, tax remittance and printing/signing paycheques.

3. Switch to Paperless Payroll Services

With advancements in technology, there is a reduced reliance on paper. Paperless payroll technology does away with physical paycheques, paper timesheets, timecards, pay stubs and other paper-based processes. By using an HR and time-tracking software, your employees can access their information in a quick, easy and convenient manner, i.e. on their mobile device.

There is also considerable savings by skipping on paper too. Every transaction that does away with paper spells more savings for your organization. In addition, reporting payroll data electronically is more reliable. It doesn’t get affected by bad weather, so your money gets deposited electronically.

4. Streamline Existing Systems

Organizations with several high-tech systems for tracking, receiving and processing data are susceptible to making errors and data loss. For example, some companies have different systems for tracking employee benefits, payroll, applicant tracking, performance management, etc. Overtime, this can get chaotic and difficult to manage.

 By integrating everything into one HR system, your management team can quickly and easily leverage information for analytics, access information to make decisions regarding promotions, pay increases and managing the organization.