The ending of a year and the beginning of a new one isn’t just symbolic for individuals. It can be a time to start afresh even for businesses. If you have been considering making changes to your systems, reviewing your payroll process is a good place to start. A strong payroll system can not only save a company time and money, it can also keep employees motivated, boosting productivity in turn.
Here is a basic checklist to amp up your payroll process in the new year (and decade):
1. Shift to a payroll software
If your company still relies on Excel for payroll processing, 2020 is the time to switch out. Purchase a payroll software suited to your business. This will help reduce human reliance, error, as well as the time taken to complete the task every month. In-built compliance systems will also help minimize statutory errors. This is the first step to a smooth-sailing payroll system.
2. Create a written payroll policy
In the event that your company does not have a fixed pay policy, put one down in writing for the new year. Include details about pay day, parameters, basis for bonus payments, pay raises, overtime structure, etc., that can then be distributed among employees. Also include details about how to access the software and verify payroll details online so as to make the process smooth for employees.
3. Track legislative changes
A new year may also entail new wage and taxation laws. Keep an eye out for changes with regard to minimum wages, income tax rates, deferred compensation, taxation of fringe benefits, child support, life insurance, among others. Check with the human resources team to ensure that they are up-to-date with regulatory requirements so that they can spot and correct any errors, in case they arise.
4. Invest in an attendance software
Another way to minimize payroll error is to have an attendance software. This will allow easy handling of employee working hours, sick days, and holidays. A cloud-based, automation-reliant system will also ensure that the information is readily accessible for people to verify with, in case of any doubts. Data from attendance software can also be a powerful analytical tool for the company to streamline employee working hours and improve productivity.
5. Leverage integrated HR systems
Take your payroll game up a notch by investing in a holistic, integrated HR system that unifies payroll, benefits, attendance, recruitment, statutory compliance and employee management. A single system that handles all HR functions will save time and employee effort, and also churn out more efficient solutions.
Having a payroll processing plan in advance can reduce the stress that comes with possible errors. A yearly checklist can help identify the gaps in payroll systems, which can then be fixed for improved efficiency, and a new year is the perfect excuse to start!