As times change, people get familiar with advanced technologies to accomplish tasks quickly and precisely. The use of payroll management software makesseveralHR duties flexible and transparent.
Demand for HR and payroll software is increasing, and the market expects to reach $33.57 billion by 2028.
Now there could be a question of why there is such a rise in demand for the online payroll system.
So, let us dig deep into the topic and see if we can get an answer to this question.
Paper-based and online payroll systems
The shift from paper-based to online payroll is forming a debatable topic for several businesses. Payroll challenges have always been an unwanted guest despite using HR and payroll software for regular activities. Even the administration encounters various payroll issues in the workplace.
To curb these problems, organizations look for outsourcing. Although it is a good option, however, it can disclose several confidential information with third-party providers leading to data breaches. So now the question arises whether to use third-party or in-house payroll management software.
The impact of cloud-based payroll software
In a report, over half of the employers suggest that there should be an enhancement in the payroll process. Several inconsistencies like over and underpayments and incorrect tax withholding are a few common payroll errors companies face.
Organizations need to capitalize on their payroll management to flourish in their business. A streamlined and enhanced payroll system could reduce costs and organize the business operation. It leads to selecting the best payroll software for their business. This software can let HR manage payroll operations efficiently and remove the risks associated with payroll processing.
Challenges in payroll management
Here are the following challenges faced by businesses with manual payment systems.
- Issues in administration – Smaller companies still process payroll manually, which can result in mistakes and added workload for HR. Switching to the best HR and payroll software can fix this issue and be cost-effective.
- Organizational difficulties – Maintaining accurate payroll and employee records is a vital business challenge. Establishing a central location for files and creating uniform filing processes can improve workflow. Transitioning to payroll management software can eliminate paper forms.
- Incoherent Software – You will find that not all payroll programs are compatible. For instance, the program used for your employee records may differ from the system used for pay and benefits. Furthermore, what about the program used for employee performance? Investing in cloud-based payroll software can integrate all these functions, streamline your overall process, reduce the time spent on tracking and data input, and make your entire department more efficient and cost-effective.
- To track employee absenteeism – Manual tracking of employee vacation and sick days can lead to errors. Paper time cards and digital sheets are prone to misuse. Efficient HR and payroll software eliminates multiple problems like buddy punching.
- Risk of keeping the operations compliant – A small payroll error can be costly to any organization, large or small. Companies must comply with numerous federal and state labor laws to avoid compliance issues and risks. An organization should know the labor regulations in its country of operation and adhere to statutory compliances to mitigate legal trouble and other threats. Advanced payroll management software can meet the compliance requirements of an organization.
- Data security and protection – Employee payroll data is sensitive and requires strong data protection. Compliance with different data security laws is crucial for global payroll management. Managing various data streams between the central system and vendors is essential to avoid security risks. A reliable payroll service provider ensures high data protection standards and GDPR compliance. Using cloud-based payroll software with encrypted data transfers ensures data security during system transfers.
- Slow implementation – Implementing a global payroll is a slow and challenging process. Deciding which payroll model to choose alone can take weeks or even months, and the actual implementation process usually takes even longer. Especially for businesses in the middle of global expansion can be a significant issue. Integrating a cloud based payroll software accelerates the process by leveraging its existing structures, knowledge, and experience in implementing a global payroll infrastructure.
- Handling data manually – According to Deloitte Global Payroll Benchmarking Survey, 30% of organizations feel, manual data entry is enormously time-consuming for all payroll processes. This problem is particularly challenging during manual data entry from different software providers into the central HCM and accounting systems. In addition to wasting valuable time on administrative tasks, manual entry increases the risk of errors. One solution to this global payroll challenge is consolidation through streamlined payroll management software.
- Lack of transparency and visibility – When an organization manually handles its payroll process, it will lack the necessary data transparency within the connected departments. This issue also emerges when one company uses multiple payroll vendors simultaneously. It is a global payroll issue that requires a solution. A technologically improved HR and payroll software consolidates and systematizes the payroll data in one platform, ensuring accessibility to the necessary department.
Online management of the payroll process
Fortunately, automated payroll management software can avoid this risk. A leading payroll software provider, like WrkPlan, supports ongoing and changing organization compliance demands and is a cost-effective solution for small and medium businesses.
WrkPlan payroll software offers:
- Customized employee portal
- Quick access to salary information from anywhere.
- Keeping records for future use
- Simplified employee enrolment
- Automatic modifications to payroll
- Quick processing and instant printing
- Provides real-time reporting
Avoid hiring extra employees for payroll management tasks. Build your reports and access multiple documents such as variations, bank reports, payslips, deductions, payouts, accruals, etc. Use online payroll management software instead. Before deciding on your software provider, contact WrkPlan, the best cloud based ERP software. It will offer a free ERP system demo that will provide a thorough run through the system and inform of its multiple features and benefits.
To know more about WrkPlan, get in touch with their sales team. Visit WrkPlan’s official website for more details or dial 1-800-120-2449 and speak to one of their representatives.
