The HR department is responsible for identifying and bringing in talent to fill up the position required to perform specific roles and realize the company’s goals. Retaining the employees wouldn’t be possible if payroll took a backseat. As the HR team puts in every effort for ensuring that payroll processes run smoothly, they shed light on some payroll habits of employees like inaccurately filled attendance sheets, incomplete submission of documents, delay in filling forms, etc. that really create challenges in payroll processing. These habits affect the performance of even the best HRM software.
In this blog, let us look upon major challenges in payroll processing:
- Untimely submission of attendance sheets
- Requesting salaries before the scheduled date
- Not informing the payroll department about a closed bank account
- Submitting incorrect tax forms
- Incorrect paid-leave information or late approval of reimbursements, paid leaves etc.
Major Challenges in Payroll Processing
Payroll processing is one of the most important tasks in an organization and includes tasks like determining salary structure, collecting employee’s data for crediting payroll, defining rules and regulations w.r.t. taxes, and other related compliances along with disbursing salary and providing salary slips to employees.
Majorly organizations face a few challenges in payroll processing like:
1. Untimely submission of attendance sheets
Payroll can access information and process salaries only when attendance sheets of employees are submitted. There are some employees who get lazy or forget and delay sending the sheets till the very last minute. If the submission is untimely, there is nothing much the HR team can do and they still hear complaints with no fault of theirs.
Tip: The web-based HRM software can be integrated with third-party peripheral equipment such as fingerprint scanners, RFID chips, or barcode scanners to mark attendance. Half the work is done for employees when their attendance is tracked with such ease.
2. Requesting salaries before the scheduled date
Yes, there is a specific date when salaries are credited every month and the employees are also well aware of that. However, that doesn’t stop some from trying their luck and requesting their salaries earlier than the scheduled date. The payroll team may understand that an employee has an emergency or there is an urgent need for the money but unfortunately HRMS doesn’t comprehend.
The entire payroll system compromises due to a personal emergency or because some employees are broke. At the same time, making an exception for just once could land the company in trouble because the payroll and taxation aspects are interconnected. Early payment could cause some discrepancies leading to monetary troubles for the company.
Tip: Make sure to define the particular dates like before the 20th of every month in your HRMS software till which employees can request salaries before the scheduled date.
3. Not informing the payroll department about a closed bank account
Employees’ bank details are linked with the HRM software. As long as the details are accurate, salaries would be credited on time without any issues. But if one decides to close that current account and open a new one, one must remember to inform the payroll team on time. Once the salary gets credited into the closed account it would take some time for the banks to return the money. In the meantime, even the company cannot re-issue that money. It’s a stressful time for everyone.
Tip: Make sure your HRMS software sends two reminders in a month to your employee’s inbox for updating their bank account details.
4. Submitting incorrect tax forms
Tax is one aspect which you cannot take lightly. Submitting inaccurate and sloppy tax forms would force payroll to put in extra hours. Every web-based HRM software rolls out payroll based on the information it receives. If you give incorrect information you can’t blame the software or the payroll department when you face taxation issues.
Tip: Make sure to give proper training related to tax form submission and send short self-explanatory videos to employees’ inboxes.
5. Incorrect paid-leave information or late approval of reimbursements, paid leaves, etc.
One may have had a wonderful week-long vacation that emptied a significant portion of their bank account. They eagerly wait for their salary to be credited only to realize that their paid leaves haven’t been accounted for. If they haven’t filled them out, then the payroll team cannot do anything. It’s the manager’s fault if they forget to approve paid/sick leaves and reimbursements on time. In any case, the best HRM software in India cannot resolve the issues.
Tip: When a new employee joins as the manager or at the position to have the authority of approving leaves, then make sure to set reminders for them so that they never forget to approve leaves before the salary date.
Payroll is complex enough for the HR team to wish for magic elves to work for them. Since they are left to manage everything on their own, it would be kind of the employees to avoid some of their annoying habits to make HRs’ life a little easier.
However, challenges in payroll processing can be avoided with proper management of payroll processing which requires an effective software solution. And while there’re separate payroll processing services and software products available in the market, having a dozen different software products/services managing your HR does nothing instead of making things complicated.
At this point you may be wondering, isn’t there a simplified yet expedited way of doing it? Well, there certainly is, and it’s called HROne.
What is HROne?
HROne is an intelligent enterprise-ready HRMS software whose functionality is extended with different modules. Do you need recruitment help? There’s a module. Do you need a helpdesk? There’s a module. Similarly, they have a payroll processing module as well – so if you implement their software, you don’t need to rely on a separate HRMS payroll software.
So, now it’s clear that HROne can act as your payroll processing software. Let’s see what it can do:
Why HROne: The Benefits
HROne’s Payroll Management module can help you with virtually every task related to employees’ payroll processing. Some of the tasks that it can help you perform efficiently and effectively include:
- Tracking employees’ work hours
- Calculating compensation according to hours, and
- Withholding all the taxes and deductions.
- Integrate payroll with financial software for zero-error calculations
- Creating reports to know effective costs, CTC trends, liabilities, and more
It has got many great features to help you do these things. For example, it allows you to:
- Define multiple salary structures according to policies of your company;
- Calculate and disburse salary along with its various components;
- Create error free statutory compliance reports according to your industry.
- Minimize challenges in payroll processing and create a wonderful experience for everyone
- Simplify the loan approval and EMIs process for employees
- Recalculations become easy with three-dimensional reports
These features are presented to you on the foundation of such great HRMS software that you can utilize each of them effortlessly. Each feature is easy to utilize and offers tremendous benefits to whole organizations. HRMS software not only makes the payroll process hassle-free but makes it as smooth and seamless as never imagined before.
Conclusion
There’s no doubt in the fact that financials matter a lot for any small business. And while large financial transactions often matter the most in any business, entrepreneurs and managers can’t ignore the importance of payroll as well. It’s a regular expenditure, and the motivation of your workforce depends on it. Therefore, you can’t afford to mess it up, especially if you’re a small business.
Mistakes in payroll processing may turn out to be too costly for any business, so you must have great software managing it for you. And not just any software, because you don’t want a complicated maze of different HRMS solutions as well. For these reasons, HROne can certainly be the best choice for your HRMS payroll software because it has got features to save you from both these problems.