Key Steps to Simplifying Complex Payroll Processes
Payroll is an essential activity for any business. Processing employees’ pay efficiently is critical to ensuring operations aren’t interrupted and staff are happy and engaged. That said, payroll, like any other department, can encounter complex issues.
From rules and regulations to cash flow problems, your payroll department must be at the ready to respond to setbacks. Yet, as we all know, preparation is the first step to preventing problems. With that in mind, let’s look at ways you can simplify your payroll processes and reduce future issues.
How do you Simplify 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.
- 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.
- 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, formerly Intelligo, 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:
- The Right to Restrict Processing: An employee’s record can be marked as restricted for processing.
- 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).
- Personal Data Identifiers (PDI): The module allows the Administrator to define pre-selected data fields as PDI.
- 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.
- 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).
- 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.
- 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.
Benefits of On-Cloud Payroll Software
So, why outsource your payroll processing?
For starters, the case for On-Cloud payroll migration is a strong one. When you make the move, you get exceptional:
- Security and recovery: 94% of businesses say they saw an improvement after implementing cloud solutions.
- Scalability: You can easily scale your payroll systems to accommodate growth or downsizing.
- Cost savings: You can save more than 20% with cloud-based payroll software like MegaPay On-Cloud. There are also no up-front fees.
- Accessibility: On-Cloud payroll software allows ease of access and is great when you have staff working remotely.
On-Cloud payroll software is built to be configurable, robust, and adaptable. This flexibility is a major benefit for businesses as it allows them to adjust their payroll as they grow. There is also no hardware to maintain and update as your data is readily available on a computer, tablet, or phone.
Simplify Your Payroll Processes with SD Worx, formerly Intelligo
Ready to ease the pressure on your payroll department and make great savings? By partnering with SD Worx, formerly Intelligo, your payroll staff will no longer need to undertake tedious, manual tasks. Gone too are the end-of-year tax updates and hours wasted pulling together reports. That’s because we provide MegaPay On-Cloud, the single payroll solution that does it all.
To free your business of time consuming and complex payroll processes, contact SD Worx, formerly Intelligo, today.