Payroll is one function of every business organization that experiences hitches irrespective of the organization size and needs expert HR consultants to tackle the issues. Whether an organization follows a manual payroll system or has implemented the software technology to simplify the function, some issues are common to every organization. Organizations need to equip their HR department with experienced and skilled HR professionals or hire HR management consulting firms to fix the common problems faced by them in payroll management.
1.Absence management: One of the most challenging tasks in the payroll function is tracking and managing the employees’ absence. When an employee is on leave, it is the duty of the employer to find a substitute resource for the employee and manage the work so as to not affect productivity. HR consultants suggest implementing a biometric system of attendance to track the presence or absence of an employee and calculating their pay.
2.Statutory compliance: Many organizations do not have adequate expertise to handle the tax and other statutory requirements that need to be complied with at both the state and central levels. Yet, they do need to comply with all the statutory regulations to avoid any kind of legal hassles. This can be done by outsourcing the payroll function to an HR consulting firm that is well established and capable of tackling all the legal requirements related to the salaries of employees.
3.Payment errors: To avoid payment related errors and delays it is essential that an organization links up the bank accounts of the employees accurately with that of the organization’s bank account. Even a small mistake in an account number can cost the organization dearly.
4.Wrong Calculations: Each and every employee’s salary consists of a number of components that ought to be considered and calculated accurately in every payment cycle. All the components like the number of days present, overtime payments, bonus, incentives, deductions for a loan, insurance etc. all have to be properly calculated every time salaries are paid. To avoid wrong calculations and subsequent wrong payments it is advised that this process is handed over to experts at the HR management consulting firms who are adept at handling these tasks.
5.Missing Deadlines: To keep the employees satisfied it is important to pay the salaries on time without any delays. Irrespective of any holidays or leaves by the employees responsible for payroll, payments should be made to the employees on or before the deadline. If any holiday is coming up on the day of pay release, proper planning should be done in advance to complete all the formalities and release the paychecks on time.
6.Classification of employees: Not all employees are on the payroll of an organization and there are many who work on a contractual basis or freelance. Incentives and statutory regulations for such employees differ from that of the regular employees and it is a bit challenging and tedious task for the HR department to calculate salaries for these employees.
Organizations can get rid of a tedious and demanding task like payroll function by outsourcing it to competent HR consulting firms and eliminate most of these common issues. Partner with Accuprosys for all your concerns related to human resources and focus on your core competencies for better productivity and financial success.