Common Problems With Payroll

Management

Despite the variety of HR software, tools, and resources there are still common problems with

payroll management that must be consistently addressed. As a payroll management professional

you have probably encountered all of these - and more! - with varying degrees of success in

resolving them.

Optimizing Your Payroll Management Process

In a recent survey more than half of the businesses polled stated that there is room for

improvement in their payroll process. The most common payroll errors were organizational

consistency in the payroll process, incorrect tax withholding, over and under payments, as well

as many other areas.

While up-to-date software can enable HR, payroll, and employee data to be less overwhelming,

if storage and processes are not well organized, you are open to errors. And this can back up

your payroll department back by several days.

Five Problems With Payroll Management

Here are five common problems with typical payroll management processes for companies doing

payroll in-house, and some tips on how to resolve them:

1. Administrative Overwhelm

Many businesses, especially smaller ones, still carry out their payroll process in-house and

manually. A manual payroll system typically requires a great deal of paperwork. A manual

process also creates an administrative burden for your and your HR staff.

Errors in data entry, for example, can create payment issues and the misapplication of rules. This

can resolved by using an integrated software. In fact, a great initial solution is to simply invest in

payroll software, which can be far more cost-effective than hiring additional staff to handle a

growing manual process.

Another approach that even smaller businesses can afford is to outsource your payroll

management. This allows some or all of your payroll and HR processes to be managed by a

professional firm.

2. Organizational Issues

A related problem is one of simply keeping all of your important payroll and employee records

and information organized in an effective and accurate manner. Sometimes it is simply a matter

of work flow: keeping files and documents in a central location and creating uniform filing

processes.

Gradually minimizing, or even eliminating, paper forms and files can be an effective solution,

This, too, can be accomplished by using a payroll software that has all your human resources and

payroll functions integrated. But whether you retain a manual approach or invest in a robust

payroll software package, it is important to analyze and re-think your organizational process.

3. Incompatible Software

If you haven't experienced it already, you may find that not all payroll programs are compatible.

For example, the program used for your employee profiles or records may be different from the

system you use for pay and benefits. And what about the program used for your employee

performance?

Finding and investing in a program that can integrate all of these functions will streamline your

overall process, reduce the amount of time spent tracking and with data input, and even allow

your entire department to become cost-effective.

4. Tracking Employee Absence

Manually tracking your employees' vacation and sick days can be a task fraught with potential

for mistakes. Paper time cards and even simple digital time sheets are notoriously prone to

misuse and unintended errors. In addition to the payroll, tracking which employees are not

available due to various types of absence, is critical for effective planning and optimum

productivity.

Having an efficient and even digital timekeeping system can eliminate most, if not all, tracking

and time card problems for your payroll management process.

5. Compliance Issues

The California legislature recently passed a number and amended many others. Most of these

changes already took effect on the first of January this year. As a result, it’s important to review

their current policies and practices to ensure compliance and provide for any required new

workplace postings.

Accurate and timely management of compliance practices are required for every business and

every payroll professional. This is especially crucial for businesses to avoid costly complaints

and government investigations and penalties.

Fortunately, an outsourced payroll solution can mitigate this risk. a reputable payroll

management services provider, can not only relieve you of the burden of your ongoing and

changing compliance demands, but can potentially prove to be a more cost-effective solution, as

well.

Considering Outsourcing As A Solution

Payroll management is a business function that, along with taxes and other HR functions, is often

outsourced. This means your HR team can concentrate on more important matters, such as

increasing productivity and employee engagement.

However, as a business owner or manager, it is quite common to think of "outsourcing" in terms

of an "expense". One of the first questions that come to mind is usually, "What's it going to

cost?" But outsourcing can actually be a very cost-effective move, and one that can free up

valuable time and resources within your organization.

It should, in fact, be viewed as an investment and our company is provide best outsourcing

solution in India and UK.