It’s only human to make mistakes, but there is very little margin for error when it comes to pay checks. Non-payment, over-payment, late payment, or incorrect payment could force workers to look for new employment. Often, employees have to make late payments on a bill because of payroll errors.
It is possible to maintain accurate payroll data, keep your staff happy, and have the time to manage other areas of your business. These are some of the common traps in the process, and how using modern technology can help you to navigate your way around them.
Payroll data inaccuracies
The greater your reliance on manual data entry, the higher the risk of inaccuracies in your pay checks. The five most common causes of incorrect payments are wrong times recorded, missed clock-ins, wrong pay codes applied, missed timecards, and pay rates being applied with errors.
Using a spreadsheet system that does not offer accuracy checks makes you vulnerable to these mistakes. Using outdated software that limits accessibility also heightens your risk of error.
Maintaining tax compliance
There are numerous laws that affect businesses operating in the Middle East, depending on which country you are based. While not all laws will affect you and your staff, those that do need to be complied with in order to avoid costly slip-ups.
If you don’t keep up with local legislation, or have a system in place that regularly checks compliance, you risk discovering inconsistencies when it’s too late. Having processes that control compliance and catch inconsistencies in advance, will leave you more prepared in the event of an audit.
Modern payroll solutions account for constantly changing compliance and tax rules, as software-as-a-service (SaaS) providers can push legislation updates directly to your software without you having to do a thing. This leaves you safe knowing that you are paying staff within the correct requirements at every pay run.
Sage 300 People
Secure, compliant, and familiar, Sage 300 People has everything you need to drive HR and payroll in your large business.
Feature and benefits that support your growing business
As your business expands, your payroll needs will also grow. What works for your business today might not work after you’ve doubled your staff complement. There are many transformative solutions available, but not all are equal. When selecting your provider, look out for these key features and benefits:
Tailored, dedicated support
Onboarding should be quick and easy, and your provider will want to make it as simple and pleasant as possible. Demonstrating the value in their service early will surely earn your trust, but look for providers who assign a dedicated customer service representative to you. They will ensure the nuances of your business’s payroll taxes are covered, and will be with you throughout the onboarding process as well as into the future.
Retroactive audit controls
Leading solutions offer historical analysis that will catch any retroactive discrepancies. With a simplified view of your business’s payroll tax data and pre-configured report generation, payroll becomes a quick and simple process, freeing up time that can be used elsewhere in the business.
Instantly accessible reporting and analysis
Having on-demand reporting and analysis will show you how payroll is impacting your bottom line and will help you make better business decisions. You can customise your reports and create dashboards to show your most relevant data elements. Your payroll solution must come with the latest dashboards and analytics tools, including support for regulatory reporting. This will help you look at payroll data over time, assisting you in making informed forecasts about your business’s financial wellbeing and performance.
Seamless integration with time and labour management
This improves data quality and ensures that pay checks are accurate. Having the time and labour data in real-time, as well as the ability to make real-time changes, helps reduce the amount of errors, lowers the risk of non-compliance, and allows for automation throughout the payroll process – from data collection, to process, and finally to pay check.
Broad ability to track numerous worker classifications
This includes not only full- and part-time employees, but also seasonal and temporary ones. It sometimes happens that employees will shift from one classification to another during a payroll period, or over several periods.
By being able to update employees when required and having real-time ability to track their status and report on them accurately, it’s possible to eradicate errors that may occur based on:
- pay rules that could change along with the classifications,
- time management rules that are bound by government regulations,
- or company rules that flow through the payroll process.
Knowing these classifications can also mean a difference in the employee being offered certain benefits with the company as well.
Intuitive user experience
Tools are only useful if people feel at ease using them. Over time, payroll has evolved from ledger paper to spreadsheets to cloud-based software applications. As solutions have changed, so have the needs of those using them. The process itself hasn’t changed much, but through end-to-end digitalisation, it has become more streamlined and accurate. For these things to be possible, the user experience has evolved alongside digitisation, and payroll applications are now an essential piece of the everyday back office.
Providing certain features and functions to employees in order for them to self-manage their employee and payroll records has meant that small businesses not only save time, but it has also enabled them to streamline processes, improve accuracy, and, as a result, pay little to no payroll fines.
Security access levels to mitigate risk of exposure
Modern payroll and human capital management solutions should have accessibility for someone in payroll, HR, or IT to maintain and update security levels in real-time. Organisations that allow specific access to data for payroll could even have certain rules where specific users can process payroll for specified locations or classifications of employees. When deciding about a payroll application, security, data access, and data privacy are all key components to consider.
Cloud-based software for payroll management gives multiple benefits and the right solution for your business is one that saves you time and provides for accuracy. The most recent versions of payroll software are designed from the bottom up, taking into consideration any regulatory requirements such as local tax laws, making it easier to avoid mistakes.