Technology is Changing Payroll in Ireland – Here’s How
Technology is Changing Payroll in Ireland – Here’s How
As it has done for many aspects of our lives, technology is changing a key business function: payroll. How? Well, nowadays businesses turn to technology to reduce the number of payroll issues they encounter, e.g., data security concerns. Not only that, but businesses are also looking for ways to save on manual labour, wages, and costly human errors.
We know this because of research conducted by SD Worx, formerly Intelligo. This research, our Payroll Proficiency Report, offers a comprehensive overview of payroll proficiency in Ireland, where businesses struggle, and how software is changing the payroll landscape.
Basis for our Payroll Proficiency Report
For our Payroll Proficiency Report, we surveyed companies whose headcount ranged from <10 employees all the way to 3,000+ employees. We asked questions based on six key areas which were:
Focusing on technology for this article, we’ll look at how software improves payroll processes and the broader affect it has on a business.
How Technology is Changing Payroll in Ireland
So, what is the meaning of payroll technology? Simply put, payroll technology covers both On-Premises and On-Cloud software that businesses use.
In Ireland, it’s common for businesses to combine internal and external systems and technology in their payroll process. That said, one-third of businesses stated that they rely solely upon cloud-based software applications. This signifies a shift towards cloud computing and recognition of its benefits such as increased security and faster disaster recovery.
But where exactly does payroll technology prove itself? Well, when we look at data entry and checks prior to data processing, businesses prefer the internal option. 68.6% of businesses also say that payroll technology is making data collection easier.
Furthermore, 64.7% of businesses we surveyed stated that available technologies and systems make payroll processing easier. 63.9% also said it helped with the overall preparation, management, and distribution of payroll.
What our Payroll Proficiency Report highlights is that technology is making payroll processes easier for businesses, regardless of whether they use an internal or external system. Areas of particular benefit include:
Of course, it’s not all endless highlights as payroll comes with its challenges too, all of which technology overcomes…
How Technology Overcomes Payroll Challenges
While researching for our Payroll Proficiency Report, we uncovered common payroll challenges that Irish businesses face. One such challenge that ranked highly across the board is that of legislation.
From taxation (63%) and the social security system (53.6%) issues to obligations imposed by the government (44.9%), businesses face a range of difficulties in adhering to relevant payroll rules and regulations. Legislation is, however, a tricky area as the laws that govern payroll are mandatory. We must also remember that not all businesses are alike, so reasons why some find payroll challenging may depend on factors such as internal structure.
Another common challenge we came across is that of administration. Sub-processes that complicate the administrative aspect of payroll processing include:
- Expertise processes: 56.4%
- Administration of presence and absence: 56%
- Administration of pensions and insurance policies: 49.8%
- Administration of contracts, on- and offboarding: 48.2%
- Data interpretation prior to data entry: 40.6%
*% of businesses surveyed that found these areas challenging.
While these challenges highlighted where businesses struggle, we discovered how technology counteracted them. For instance, the top five payroll sub-processes made easier by technology at Irish firms are:
- Data collection and integration with data sources
- Data entry
- Administration of contracts, on- and off-boarding
- Checks prior to data processing and payroll calculation
- Preparation, management, and distribution of payments
The broader picture shows that technologies and systems make payroll processing easier. Furthermore, payroll technology removes manual input and leads to fewer mistakes and more data-driven insights.
Related Article: Outsourcing Payroll: The Challenges Involved and How to Overcome Them
One piece of payroll software becoming more prominent among businesses is cloud-based payroll software. And if you are yet to migrate from On-Premises to On-Cloud payroll software, it’s worth assessing the reasons why you should…
Benefits of On-Cloud Payroll Software with SD Worx, formerly Intelligo
If you’re thinking of moving to cloud-based payroll software and looking for a trusted payroll partner that offers the latest in payroll technology, SD Worx, formerly Intelligo is here for you.
Our MegaPay On-Cloud software offers a range of benefits that will accelerate your payroll, including:
- Enhanced security: Microsoft Azure’s full-time staffing and 24/7 security operations centre (SOC) constantly monitors the entire cloud infrastructure.
- Reduced costs: MegaPay On-Cloud could save you more than 20% in payroll-related costs.
- Flexibility: With around 23% of Ireland’s workforce ‘usually’ working from home, MegaPay On-Cloud is perfect when employing remote workers.
- More IT free time: MegaPay On-Cloud frees up your IT team to focus on tasks that matter most to the business.
Discover how MegaPay On-Cloud is the ideal payroll solution by booking a demo today.