A payroll system is a system that helps a company to manage things related to payrolls such as basic pay, deductions, compensation, and benefits. Companies should not make mistake in paying their employees because it might affect employees’ perception of the company. If a company still does payroll manually, it might have a higher risk of error calculation. That’s why companies need to upgrade payroll system to help them calculate and manage employees’ payroll.
There are some signs that it’s time for your company to upgrade its payroll system. What are those signs?
When it’s time for business to expand their business, it’s time to upgrade the payroll system too. With cloud-based software, the HR department can easily access their employees’ data from anywhere. Even if companies have branches all over the nation. The data will be stored in an online cloud system so the HR department can manage the data from the main office.
If the company still has a small number of employees, it might be easier for them to manage payroll manually. But what if the size of employee increase? Let’s say every month, the HR department has to calculate the payroll of 50 employees with only 3 staff. How much time and resources needed to do this effectively? Some might want to hire more HR staff, but this doesn’t solve the problem because it actually costs more. Manual calculating is also prone to human error or miscalculation. By using a payroll system, this error is minimized and the time spent on calculating payroll will not as much as manual calculation.
Comply Government Regulations
Government regulations are dynamic and always change over time. If this still handled manually by HR staff, they might get “jet lag” from all the changes in regulations. It can create confusion on what’s new and what’s old regulation and how to implement it in the company. To minimize these risks, a software system is always updated with the latest government regulations. This way, the company doesn’t need to worry about the change in government regulations and where should they implement the new regulations.
Manual payroll processing might take too much time and prone to human error. As said before, payroll calculation is not just calculating which employee needs to be paid this much. The company also has to comply with government regulations and these regulations can change.
If the company uses a payroll system, its HR department can focus on another thing such as how to develop the best training for the employees. If the employee headcount growing, this will be harder for HR staff to calculate their payroll, the payroll system will help this.
HRMLabs is centralized cloud-based payroll software. Not only we help the company to calculate its employees’ payroll automatically, but we also help them to comply with government regulations.
Let’s discuss how HRMLabs can help your company payroll issues by clicking this link.