Key Steps to Simplifying Complex Payroll Processes

We’re often asked if there are basic steps to processing payroll. To answer that question, we’ve pulled together four key nuggets of advice for simplifying payroll processes.  

 

1. Pay Staff on the Same Day 

Why pay your staff on different days or payment schedules when you can schedule it for the same day? Establishing a consistent, concise schedule ensures you never miss a payday. 

You can use software, templates, or calendars such as Google Calendar to align your pay schedules. You can also share these calendars with HR to keep them in the loop. 

 

2. Maintain Employee Records  

Accurate employee records are essential to streamlining payroll processes. Not only do records allow for better organisation, but they also provide transparency and efficiency with handling payroll-related tasks.  

Records should include, among other details, employees’ full names, salaries, and relevant tax information. You should also keep track of promotions, raises, and bonuses and update the records as needed.  

At SD Worx Ireland, we have a GDPR Control Module in place that underpins the latest EU Data Protection Regulation that was introduced in May 2018. The regulation gives data subjects more control, makes Data Controllers/Processors more accountable, makes personal data processing more transparent and reduces personal data security vulnerabilities.  

Thus, payroll teams must meet new standards of transparency, security, and accountability. Compliance is key, too, as the onus is on the Data Controller (employers) to identify potential issues within their organisations. They must also analyse personal data currently being held and review the legal basis on which personal data is processed directly or by a third party on their behalf (Processor). 

 Our GDPR Control Module enables:  

1. The Right to Restrict Processing: An employee’s record can be marked as restricted for processing.  
2. The Right to be Forgotten: The module supports the deletion of an individual’s data from the software (after six years when applied to payroll).  
3. Personal Data Identifiers (PDI): The module allows the Administrator to define pre-selected data fields as PDI.  
4. Subject Access Requests (SAR): The module provides the functionality to generate output of all data held on the payroll system for a selected employee ID.  
5. Data Retention/Erasure: The module has the functionality to allow the System Administrator to prescribe and perform deletion of data from MegaPay (after six years when applied to payroll). 

 

3. Stay up to Date with Legal Requirements 

 Like many laws governing business operations, payroll compliance legislation is susceptible to change. For that reason, legislation must be carefully monitored.   

One of your first considerations when taking on new staff is their contract. All new starters must receive a written statement of the core terms of employment within their first five days. They must also receive a written statement of the remaining terms within one month of their start date. You also need to look out for essential changes like a minimum wage increase. If it changes, you must adjust affected employees’ wages. And if laws around leave change, you must adhere to those, too.   

All in all, you need to stay on top of legal requirements regarding payroll. Failing to do so could result in a hefty fine and reputational damage.  

 

4. Submit Payments and Reports on Time  

When you run a business and hire staff, you need to submit a range of information to Revenue on a regular basis. This information has to be accurate and reported on time. This information includes:  

• PAYE registration: PAYE (Pay As You Earn) is used to collect income tax and other deductions from employees' wages. 
• Payroll information: Wages, deductions, etc. 
• PAYE returns: File monthly PAYE returns and include the total tax liability. 
• Tax deductions and contributions: Deduct income tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI) from employees' wages. 
• Employee benefits and allowances: Some employee benefits may be subject to tax. Include these in your payroll calculations. 

 

For course, there is one move you can make that combines all the above, and that is to outsource your payroll processes to a provider you can rely on.