Five Great Tips on Payroll Administration

Friday, February 1, 2013

Five Great Tips on Payroll Administration

Maintaining a well-documented payroll system is of utmost importance for any business as it also reflects the business and financial strategies of the former. The job involves a lot of manpower and is a time-consuming process. Today all companies believe in running a low-cost-high-returns enterprise. Research has shown that most companies end up spending anything between 85USD to 175USD on payroll services. But payroll is one sector where substantial cost-cutting can be achieved.

Payroll integration

A number of companies outsource their payroll services to the appropriate service providers while others continue to use the software packages for the purpose. In order to achieve expected returns against investment, the whole system needs to be fully integrated with the business activity involving payroll. Usually, the major processes like keeping a record of the attendance of the employees, their salaries, pension benefits, taxes, etc are handled by different departments of the office.

If all these processes can be integrated into an automated system, preferably by a web browser, things become easier to operate and maintain. In fact, this sharing of resources between the various departments can actually reduce the overall effort involved in maintaining payroll, leading to reduced expenses incurred by the company. A number of companies have taken measure to customised payroll automation solution packages in recent times, and they can vouch for the benefits offered by such packages.

Payroll administration is based on corporate culture

Different companies adopt different work culture, depending on the type of the human resource. As a result, the various policies that they choose change. Likewise, payroll management does not follow the same steps in each organization. For instance, while some companies may be comfortable in shifting to current payment methods like pay through debit cards, etc., While others redesign their payroll jobs without tweaking in payment methods. 

While new methods cannot be imposed on existing staff, most companies make it necessary to embrace the modern and effective payroll processes to their new recruits. The existing staffs have an option to choose newer means or stick to their original structure. In fact, most companies also use promotional schemes and incentives to pressurize the existing staffs to adapt to newer techniques.

Consider the possibility of customizing pay delivery

Some twenty years ago, payroll involved basic processes like issuing cheques to the employees on their pay days. But that is costly. Statistics reveal that issuing cheques can cost the company a little more than a dollar on an average for each employee. On the other hand, electronic transfer of money is cheaper. So, most companies prefer to dump the payment directly, to their employees’ bank accounts. 

However, workers of certain industries like agriculture, textiles, etc may not have access to bank accounts. For them, a newer and better way has been designed. The employers pay them via payroll debit card where the whole salary of the employee is loaded. These cards can be used just as normal debit cards. In fact, these cards are well accepted everywhere. Such change in payroll procedures keeps a firm evolving and growing financially from time to time.

Consolidate payroll processes and cut down on pay cycles

Repeating the regular payroll system over and over again is an arduous one and also incurs greater expenses to the company. Most companies have their offices at various locations and frequently, the payroll cycles are not coordinated. As a result, a lot of inefficiency creeps up in the entire process of payroll administration due to repetitions involved. 

In such cases, it calls for a centralized unit to handle all the processes simultaneously. If the discharge cycles can be matched and the employees’ information shared, the process gets much simplified. In fact, if there is a lack of manpower, the entire process can also be outsourced at affordable rates.

Do your research

If you want to keep the company’s payroll activities within the company itself, you need to be well-versed with the modern techniques. In fact, there are numerous organizations that share their payroll services and strategies with others. It would be possible to read them and keep abreast of the latest trends. 

Since, companies of different size adopt different policies, it would be wise to select companies whose profiles match yours and read their strategies. As an administrator, it would be your responsibility to assure your employees on the benefits of the better and redeveloped system, and make them adapt to the changes efficiently.

About the author,

Grace is an expert associated with i3Group, which is a leading provider of
payroll service. Their customized payroll solutions for businesses have enabled blue-chip brands to manage payroll processes with efficiency and cost-effectiveness.

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