The growing implementation of robotic process automation, or RPA, in global payment systems and applications has resulted in some of the most dramatic changes that the industry has seen since the introduction of the cloud.
A 2009 study commissioned by the Hackett Group for APA showed that 90% of companies now have paperless payroll processing due to the advent of direct transfer and payment cards. In fact, the study found that 58% of workers across the country took advantage of self-service tools to insert personal data into electronic payroll systems.
Payment is a perk for workers, but it is a prohibition on the lives of many small business owners. On a weekly or bi-weekly basis, business owners even their accountants have to submit spreadsheets, make estimates, fill out government forms, and cut down reports on different taxes and fees, and then often deposit those payments into different accounts. If that wasn’t tiresome and exhausting enough, there are potential legal consequences that they need to think about if payroll is postponed or if the estimates are wrong.
So it’s no surprise that many businesses opt to use computer software to gather and aggregate payroll data, and many also look to outside companies to actually process payroll information. A number of software and service providers now offer businesses Web-based cloud computing options, as well.
From time and cost savings to greater accuracy to enhanced data protection, the organizational benefits of payroll automation have been extensively discussed. But what does that mean for day-to-day payroll professionals? How does automation affect your role and your responsibilities?
Here are ten useful ways in which payroll automation technology is advancing the way payroll teams execute their jobs.
Simplified Data Collection
Gathering all the data needed to process payroll and get them into the correct format is traditionally one of the most time-consuming parts of the job. Changes can come from multiple offices, in multiple formats, causing a payroll specialist to change a standard Excel spreadsheet multiple times.
Nevertheless, data collection becomes an effortless task with an automated system interface. Data is accessed or updated at its source— whether in the payroll system, HRIS, or finance application — and the system adjusts continuously so that all operations and analyses use the most up-to-date information. File formats are obsolete and data security is strengthened by removing the need for potentially outdated sensitive data archives to be stored on desktops around the world.
Helps you avoid risk
So you forgot to add a new team member to your company benefit plan, and now it’s the 91st day since they were recruited. Not a big deal at all, unless — and let’s hope this never happens — they get into an accident.
Your company is now responsible, which could cost thousands and thousands to cover.
Such mistakes can happen, but it is in everyone’s best interest to reduce this likelihood.
By handling payroll in-house and using robust payroll tools, an organization avoids the risk that comes with submitting confidential employee information to a third party. Nonetheless, you will still need to understand the reliability of your own IT infrastructure, although you can be sure that a good payroll approach would follow the highest standards of IT protection.
In addition to the secure storage of personnel and financial data, an electronic payroll system gives you the opportunity to trigger approval settings for the different levels of your company’s employees. You can give the director of your finance department full access to your payroll numbers, your supervisors can only have access to their own teams— you are in full control of who gets to see the specifics of your payroll.
Manually managing facets of payroll males it easy to make mistakes, but with the correct payroll management solution, it reduces the risk of such mistakes. Comprehensive testing and authentication processes keep you from accessing the wrong information.
Saves you time
Risk is expensive and time consuming, but more than that, reconciling the group benefits and payroll by finger is an extremely daunting task. Time is the most important resource you can save when automating your payroll process. While manual timekeeping, recording, and computing may seem cheaper at first, it is a time-consuming and labour-intensive task.
High tech payroll program estimates easily without any mistakes and also makes it possible to produce payroll reports in a moment. Instead of focusing on the smallest details of your payroll, automated payroll time can free up a lot of your time that you can use to develop better products and grow your business. When payrolls are automated, that’s a really big chunk off your plate every month.
And when you have the report in front of you, it’s easy to scan and look for discrepancies, alterations, or revisions that need to be made. You don’t have to look back and forth between two data sheets until you’re blue in your face. It’s all there — automatic.
Each of these direct advantages results in time savings for the payroll department. Add those savings, and you could see two days’ worth of time saved per payroll cycle. If your processing period was 12 days, automation could be 10 days. It leads to more data per payroll process, with less changes required.
Because each automated phase means that more accurate and complete data is collected, there is a need for less additional work, which will save your payroll team overhead savings in addition to time and effort.
Saves You Money
When taking control of payrolls yourself and not going to a professional service, there is a great potential to save money, particularly if you can use the program effectively and efficiently. Of course, there are drawbacks when you do not involve a professional service, but they decrease as you get used to the system.
With the advent of SaaS, everyone wants to pay for what they’re using. Even if it is a core function, organizations want it to be managed using software that can be scaled up accordingly. Nobody wants to invest a lot right at the start.
Cloud HR software is available at monthly, quarterly, half-yearly and annual plans. It’s charged on a per employee, per month basis, therefore, cost-efficient!
No matter how busy the business owner is, you definitely don’t want to miss paying your employees on time and have the ability to see your payroll figures anywhere you can be. Cloud-based Payroll program empowers you to do this across all platforms as long as you have an internet connection.
You can connect, produce and submit payment slips to employees, and approve electronic transfer of funds to employees ‘ bank accounts and remittances of government-mandated accounts. Automated payroll system not only does it easier, but it also gives you the peace of mind that everything is calculated precisely. Once you can make sure that the individual handling your payroll is familiar about payroll processes, taxation, regulations and compensation, you know exactly what details the payroll software can provide.
Relief from regulatory aspects
Monthly tax calculations, deductions and filing statutory remittances are frustrating and time-consuming tasks. These are tasks, which can cause hidden losses to the organization. Also, incorrect filing may attract fines and penalties for the organization.
https://www.emirateshr.com/A Cloud HR software provides you relief from keeping yourself updated about the latest laws, amendments, changes and tax slabs as the software provider will auto-update the payroll software without any downtime!
You might have missed the latest tax updates, but payroll software will help you by notifying you when these updates arrive.
Quicker, Easier Wage Calculation
Manual payroll involves mulling over spreadsheets, estimating different types of fees, and then hand-writing checks. Even with a limited number of employees, that requires a substantial investment of time for each and every pay period.
Worse than that, what happens if someone wants an extended leave from the office? The automated payroll system quickly performs all types of payments, from basic pay and hourly wages to more complex tasks such as overtime, dual-time, commissions, bonuses, increases, retroactive pay, wage deductions and tuition reimbursements. Another bonus is that Automated payroll removes the need to write a manual paycheck.
The system generates paychecks and stubs and allows direct deposits. It is important to note that these methods are not completely error-proof. Calculations are based on the contributions of the payroll official. The precision of the test depends on the accuracy of the data. Payroll software can be easily configured with multiple features, options, business rules and policies based on the requirements of your organization.
All required payroll inputs, such as attendance data, lack of pay records, wage structure, and others, are automatically pre-populated as other software modules are fully integrated with it. With a click of the mouse, payroll for all employees can be processed. The Payslips are released immediately and the bank transfer statements are ready to be uploaded for payment of salaries.
All this can be accomplished by a self-explanatory UI and a well-designed payroll procedureSimilar to using the’ lock payroll’ action to trigger a data validation module, automated systems allow repetitive tasks to be scheduled and completed automatically, freeing up the time you would have spent scheduling or assigning a task, and even eliminating a’ do’ from your list. Many tasks that previously involved the data transfer method are now started immediately after the previous activity has been completed.
More Accurate Timekeeping
Manual payroll systems require the calculation of time clock data and hourly wages by hand, which is time-consuming and offers a chance for discrepancy. With automated payroll and timekeeping systems, time clock data can be effectively imported into payroll software. The software then computes the total time worked. Any necessary changes (such as an employee forgetting to clock in or out) can be made easily and quickly.
In addition to software tutorials, respectable payroll software providers offer comprehensive support services as part of the package, to help with software issues or with how to deal with any aspect of payroll.
It’s easy to understand why the idea of automation may seem imposing initially. However, when you look closer at the impact on payroll teams, hours of repetitive tasks and effort spent on high-volume, low-value activities can be saved by implementing automated solutions.
The result is better functioning payroll teams with the time to focus on addressing errors, improving processes and delivering a better payroll result—initiatives that could dramatically impact the future of payroll in your organisation.