The modern businesses need highly developed and integrated HR and Payroll software systems as they tend to hire employees from different jurisdictions. Nowadays, hiring employees from the global talent pool and letting them work-from-home or from the remote locations is a cost-effective practice for the businesses. However, it adds to the complexity of their payroll processing. It demands a clear-cut understanding of the task from its HR and Finance staff.
Integrated Payroll System:
Implementing a global payroll software, like Payroll System by SBS Consulting, is a great challenge for the companies, whether they are trying to add more teeth to its existing payroll software or building a new payroll management system from the scratch. There are too many variables to accommodate like pay type, pay cycle, pay frequency, type of employees, payroll policies, compensation type, etc., to consider and care for.
It is important to take a review of the existing payroll software and processing steps involved to assess the improvements needed to attain the future payroll goals of the business. It assists the businesses in minimizing the statutory compliance related risks.
Tax Compliance Through Payroll Software:
Different countries have different rules and regulations regarding tax policies which creates difficulties while calculating the remuneration of the remotely located employees of the company. Using a payroll software that do not have the required functionality can lead to an unintentional breach of the law. It can attract penalties and fines and affect the market image and the brand name of the business.
Ensuring Quality of Employee Demographic and Payroll Data:
The new HR and Payroll management system to be developed or installed must be able to handle the employee details like, employee name, address, job details, bank accounts, etc. It must also be able to handle the employee grades, allowances, benefits, incentive, bonuses, deductions of statutory contributions, leave, local tax filing, etc., in order to ensure satisfactory compliance over all the necessary jurisdictions.
The businesses on their part must also ensure the quality and the depth of the employee demographic data to suit the rules and the legislation of the different countries. The clearly defined, accurate and readily accessible data is a must for the speedy progress of the project. It will lend for the smooth transition from the existing system to the new management system. It will also reduce the risks of errors in the businesses processing.
It is also important to assess the potency of the existing policies, consistencies, inconsistencies, and the volume of the business’ payroll requirements. The task is difficult and complex and the businesses need to dedicate a team of qualified and experienced professionals to it.