How to select Payroll & Attendance Management: with Deloitte Survey results
Having the right tools is essential for running any business successfully, no matter its size. This is especially true when it comes to keeping track of employee time, wages, and other payroll-related data.
Organized and up-to-date information can help you avoid costly mistakes and legal issues that result from inaccurate records. Even in smaller companies, a lack of organized payroll practices can lead to major headaches.
If you own or operate a small company, it’s important to know the benefits of investing in payroll and attendance software. This can streamline operations, save time, and reduce stress around tracking employee time and wages.
There are several options for small businesses when choosing the right software. Here are some pointers on how you can get your payroll and attendance management straightened out with the help of this type of software:
Define Company Responsibilities and Employee Job Tasks
Before choosing the best payroll and attendance software, clearly define the company’s core responsibilities and the employee job tasks that need to be tracked. This will make it easier to find the right solution for your needs. Ensure it meets your specific requirements and any legal requirements for tracking certain types of data.
Also, consider the size of your company and potential scalability when making this decision. Choosing a fully customizable software solution allows you to add the data you need to track, making the software more useful and versatile.
Gather Current Payroll Data
Once you’ve chosen the right software, gather the current payroll data needed to get started. This can ease the setup process and integration with your existing operations.
For each employee, provide details such as name, Social Security number, hourly rate of pay, and rate of overtime pay. This will facilitate future tracking of this data. Also, ensure the software has access to all relevant payroll tax data, including W-2 data, taxable fringe benefits, and other necessary information.
Track Time and Attendance
One of the biggest challenges for businesses with limited resources is keeping accurate records of employee time and attendance. This is crucial for tracking payroll, paid time off, and vacation time.
Without the right tools, it can be very challenging to keep track of this data and avoid mistakes that result in lost income and additional stress. Time and attendance software is a great solution for businesses of any size that rely heavily on tracking employee time and attendance.
This type of software allows you to easily manage and track employee hours and related data such as paid time off and vacation time. Options can range from simple to robust, depending on your business needs. Some options are completely web-based and offer real-time data tracking and management, while others offer offline functionality. Time-tracking functionality is a valuable feature because it helps employees track their hours and avoid mistakes, using a mobile app or web portal.
Establish a Timetable and Benchmarks
Once the software is fully integrated with your operations, establish a timetable and benchmarks to help you keep track of everything. This will make it easier to stay on top of things and make adjustments as needed.
For example, set a benchmark for calculating payroll at the end of each week, using data from the previous week to calculate the current week’s payroll. This will simplify tracking and ensure accuracy.
Pay Employees accurately and on time
Accurate and timely payroll is essential for any business, especially for small businesses. Payroll-related errors can lead to costly mistakes and wasted time and energy dealing with the fallout.
Payroll software can help reduce these risks. There are several types of payroll software available. It’s important to choose a solution that meets your specific needs and offers the features you require.
Look for software that makes it easy to manage employee pay rates, deductions, and other payroll data. Ensure it simplifies the payroll calculation process. Payroll software can streamline and stress-proof this process.
This type of software can help you manage payroll for your entire company in one central location, making it easier to track all payroll-related data for all employees. It can also make it easy for staff members to submit timesheets, ensuring accurate calculations.
Some software can even automate the entire payroll process, eliminating the need for manual calculations each week. Payroll software can ensure accurate and timely payroll, even for large companies with many employees.
Manage Employee Absences
Tracking employee absences can be challenging and time-consuming, especially for small businesses with few employees. Without a way to track this information and meet legal requirements, it can be risky.
Employee absence management, which is part of the attendance management system, helps keep track of all absence data. You can easily track reasons for absences, the length of time out, and other related information.
Some solutions integrate with existing HR software, making it easy to share data with other departments. This type of software simplifies managing employee absences and ensures compliance with legal requirements.
Employees are entitled to 32 days of annual leave and 10 paid public holidays. They can avail of extra vacation, sick, and maternity leave. Employees who have worked for their employer between 6 months and 1 year receive two days of paid vacation leave per month. Those who have worked for at least a year are entitled to 30 days of paid leave. Labor law currently mandates that staff are eligible for seven paid holidays.
Insights from Deloitte Survey
A survey by Deloitte, “The Payroll Operations Survey Summary of Results, Dec 2014,” provides insights into payroll adoption trends. The survey was completed by experienced professionals involved with payroll functions across various industries.
Key findings include:
- The majority of organizations centralized payroll into a shared service center located in North America.
- 90% of organizations utilize online payroll self-service.
- There is growing interest in cloud-based applications, though global payroll solutions are limited.
- Time and attendance systems are prevalent, with 84% of respondents utilizing them.
- 74% of organizations have fully documented pay policies, but 68% feel they are still developing their workforce management strategy.
- Full payroll outsourcing is more common outside North America, with higher satisfaction reported within North America.
- Organizations with business travelers face challenges in tracking and managing mobility for U.S. state and global taxation reporting.
- Payroll departments use various tools and techniques to monitor internal and outsource vendor service quality.
Conclusion
To streamline your payroll and attendance management, invest in the right software. Whether you operate a large or small business, accurate payroll and employee attendance management are essential. This can be challenging for small businesses with limited resources.
There are several types of payroll and attendance software available to simplify this process. Choose the right software by clearly defining your company’s core responsibilities and the employee job tasks that need to be tracked. Once you select the right software, managing payroll and attendance becomes easier.
The Deloitte survey highlights the importance of integrating payroll services and attendance management into the HR system. Outsourcing these functions allows HR to focus on core capabilities.