Which process business is the most detailed, time-consuming, and indispensable, regardless of industry?
Sales? No.
Marketing? No.
Accounting? Comes in second.
So which one?
The answer is, HR’s payroll management.
Payroll management is a required business process that is universal to all companies.
Whatever size the manpower is, whichever technique is employed, one thing remains invariable and that is record management and processing of payroll.
A company’s payroll system is the glue that holds the organization together.
Payroll management manages, records, and organizes the company’s financial data, especially the important information of employees.
And payroll management makes sure to pay them.
Its fundamental purpose is to guarantee timely payroll to employees.
It also helps in processing other transactions like income tax, insurance, and social security.
With all these tasks mentioned, recording and close monitoring is extremely important in coming up with a systematic payroll system.
Although some companies offer fringe benefits like gas, transportation, and uniform allowances and even rice subsidies and stipends for recreational activities, if you don’t have a reliable payroll records management and a dependable payroll system in place to compensate your employees for their service , any other benefit you provide won’t create an impact at all.
At the end of the day it is always the take home pay that matters as the bills are piling up.
Payroll errors and discrepancies caused by an obsolete payroll system leads to frustration and insecurity of employees.
In fact, a study by the Workforce Institute at Kronos discovered that payroll discrepancies have affected more than a third of American workers to make late bills payment, and that kind of scenario causes financial insecurity, stress and disgruntlement.
That’s why it is essential for every business to determine how payroll works and how to ensure that their system is rock solid.
There are many ways in deriving payroll but to ensure that your organization is doing it correctly, we will walk you through an easy 123 guide in payroll records management, so your employees get paid on the dot.
Accomplish and keep complete and updated employee information records.
This will include name, address, age, family , school records, job title, Social security number, birthdate, bank account details and insurance details.
Appoint and choose a payroll schedule.
Determine how often you plan to pay your employees.
You can pay twice a month, biweekly, or other schedules most convenient.
Whatever it is you have decided on, keep in mind that your employees have bills to pay, so you should not leave long gaps between paydays.
Otherwise, they get to be fidgety and worrisome and may lose their attention on their work.
Compute your employees’ gross pay, and consider if they’re salaried by the hourly, daily, monthly or have worked any overtime.
For monthly employees, normally, the deductions are generally consistent.
But for hourly employees, this will vary especially if an employee logs fewer hours than usual, or perhaps if he or she renders overtime work or holiday work and thus must be paid the extra time.
Come up and take deductions for taxes, Social Security, health care insurance plan, retirement fund or other deductions.
Other deductions are mandatory according to government regulations while other deductions are variables as per employee.
Retirement funds, healthcare insurance are personal preferences of some employees and may not apply to everyone in your organization.
You need to take care of all of this information and organize properly to effectively manage payroll.
Pay your employees on time.
Direct deposit to their bank account is most common , but you can also issue checks.
Keep impeccable records.
Excellent records management allows you to seamlessly pay your employees with confidence and at the same time, pay your taxes without qualms.
This is an absolutely great way to keep your business healthy.
There’s nothing worse than an employee pursuing a payroll complaint with the Department of Labor and your business not being able to produce the supporting paperwork in order to nullify the complaint.
These 6 items serve as a guide on how to manage payroll records but this takes a great deal of time and very hard work.
What kind of company do you run?
Is it just a small business or a growing one with tons of requirements?
If you don’t have a professional accountant hired as staff, and you don’t have the expertise yourself, you may want to consider getting an HRIS for your payroll management.
What are the emerging and glaring signs that you need HRIS and payroll systems for your business?
If you’re still on the fence about whether your business needs HRIS software, better check this one out.
- Do you have a small business, yet growing?
- Have you come across any employees queries inquiring about the details of their paychecks?
- Have you been late on tax filing or having difficulty keeping up with manually filling out tax forms?
- Are you lagging behind on other business requirements because your HR department is still manually calculating payroll so slowly?
- Are you oftentimes delayed in delivering payroll?
- Are payroll calculations done on an employee’s hourly wage varying every month getting too complicated and cumbersome?
If your answer is YES to at least two of the above, well then you really need an HRIS and payroll system ASAP.
HRIS and payroll systems are an absolute must for any business. You simply cannot forever depend on spreadsheets or, even worse, pen and paper and pushing it to manage payroll.
You cannot afford for errors as there are one too many areas for mistakes that could eventually jeopardize the financial health of your business.
There is a plethora of hcm software options available in the market that you can use to get your payroll more organized so you can effectively use up more time to spend on strategizing plans for your business.
If you don’t know where to get good HRIS features rolled into one, you may want to check out Human Incubator’s, EasyHR https://human-incubator.com/easy-hr/.
You need an HRIS and payroll system that can organize your employees and automatically calculate their gross pay, net pay, and deductions all completed while keeping the paperwork easily accessible to you and to your employees for their reference.
Best of all it, has automatic payroll computation with Philippine mandatory deductions.
