The Key to Simplifying Payroll Tax
Payroll management is perhaps one of the most critical functions for the HR department. But accurate payroll processing is also an essential metric for business augmentation, allowing organizations to optimize spend on compensation and taxes, while ensuring legislative compliance.
One of the biggest challenges is keeping up with dynamic payroll taxation systems. New businesses often find themselves steeped in multifaceted processes, separate state and federal laws in different geographies, and mounds of paperwork that can be tricky even for industry stalwarts. The cost of incorrect filing can range from high-fines & penalties, to loss of employee morale. In certain jurisdictions, willful failure to pay employee taxes can even lead to criminal charges with jail time!
Running a business is already hard work without having to worry about legal complications. Luckily, payroll handled well, is one less nightmare to manage.
Keeping Up with the Subtleties
Statutory compliance in different jurisdictions lead to payroll processing complexities for large organizations. Monitoring multiple tax laws, and staying updated with regulatory advancements is imperative to the success of any organization.
Even within a specific geography, different worker groups are compensated differently. Full-time employees are eligible for various kinds of pay including overtime, maternity/paternity benefits, housing allowance, and other benefits that further complicate payroll taxes. On the other hand, organizations are not responsible for filing contractor taxes.
One way to skirt these complexities is to move from people-intensive manual processing to an automated and customized payroll management software. For instance, instead of hiring staff to compute provident fund or employee bonuses, having it automated by region and employee-type can reduce staffing and circumvent potential human errors, yielding multifold benefit.
A payroll management software can also assist with staying organized. Many new-age softwares have cloud-based employee registers, and are able to compute gross pay, reductions and net payroll, as well as have include tools to monitor and generate payroll reports. This can help during auditing, when tax officials might ask for previous years’ data. Having it stored on the cloud minimizes any chance of losing information.
Consider Payroll Outsourcing Services
Though software can reduce some complications of tax processing, the characteristic of any out-of-the-box solution, is that one size does not fit all. The dependency on expert human resources will continue to endure.
Payroll outsourcing services are a sure-fire way to ensure new integrations yield top benefit. Apart from managing the nuances of legislative compliance, payroll outsourcing can ensure that taxes are filed on time.
Allsec SmartStat helps address any issues related to payroll taxation. As a decentralized payroll service spanning different geographies, we help simplify payroll management while providing process efficiency. By integrating Robotic Process Automation into our workflow, we have also significantly simplified the payroll process.
With an automated payroll management system and a payroll calendar that will monitor important dates, deadlines, and audits, employers will not have to worry about errors or delays, and can instead focus their efforts on core business operations.