Payroll Software As The Solution To Harmonize Payroll Processes
Companies use payroll software to save on time and efforts invested in computing employee’s salaries and to ensure that the company is in compliance with various regulations. There are federal, state and local regulations when hiring employees, the amount of compensation and withholding taxes, deductions and garnishments. With payroll software, payroll information is maintained and secured.
The goal of many employers in Central and Eastern Europe is to harmonize payroll processes. Employers want to gain visibility in their operations throughout the region. They also want to reduce the time spent in payroll processing and production of pertinent reports.
However, based on the results of a recent research made by Harvard Business Review, 7% of HR and payroll managers believe that theirpayroll processing systems must be sufficiently standardized, simplified and automated to ensure that harmonization will be achieved.
At least 45% of the respondents revealed that they are using three or more payroll software while a little less than 29% said they use different software for every geographical market of their operations. This situation makes it difficult to obtain a single view of an organization’s payroll data and payroll processing activities. Furthermore, it increases the risks of non-compliance with regulations not to mention the errors and delays that may frequently occur.
Less than a third of companies that were surveyed are currently outsourcing HR and payroll services. They also use different outsourcing vendors according to the country where they operate. There is a downside when working with different vendors because managers have to deal with varying report formats.
The single reason why companies prefer to outsource HR and payroll services is to be able to gain access to local talents and their knowledge of language and local legislations. However, this system is inefficient because it lacks harmonization. The solution is a single online portal with dashboards to provide visibility in payroll processing activities.
Manual payroll processing and document filing are already passé. When payroll software is used, employee information can be captured and managed quickly. Salaries are calculated in an orderly manner including the preparation of necessary documentation. Bank auto-payment of salaries can also be executed based on the information from the software.