Payday is one of the most important days of the month for the workforce globally, but behind the scenes, your payroll system has to be a well-oiled, up-to-date and coordinated administration machine that consistently delivers that pay cheque into your employees’ accounts. Still, payroll mistakes can consistently pop up, and faults and flaws in administration become more and more prevalent. Overtime, even small payroll mistakes can accumulate into much larger financial losses and plant the seeds of doubt and conflict between you and your employees.
It’s a common mistake, in fact 82 million Americans have experienced paycheque errors and the knock-on effect can impact your internal operations, such as tax payments and inaccurate records. Payroll systems face a myriad of challenges in getting everything done correctly; there’s no doubt about it. However, you can mitigate these issues with the most efficient payroll software and cutting-edge knowledge that we’re dedicated to researching and sharing at Invatechs.
There’s a lot that goes into a successful payroll system, and if you get it right it’ll set you up for success for years; get it wrong and the mistakes can be costly and harmful. Let’s start off with some common mistakes.
HUMAN ERROR
Human error is one of the leading factors that contributes to payroll mistakes, and without a comprehensively skilled and knowledgeable HR team/manager you won’t get the most out of your payroll software (more on that later). Smaller institutions may choose to process their payroll manually, but this can lead to more significant mistakes, including: failing to log overtime and underpaying employees; inputting/filing inaccurate data including bank details or immigration status which can lead to breaches in data security; failing to make the correct deductions as well as paying for incorrect tax services.
These mistakes can be easily made if whomever is in charge of payroll is inexperienced, overworked, or lets information slip through the cracks - an important printed document going missing; not using a clocking in-and-out system and failing to record hours; poor communication of agreed upon hours between managers and employees. All of these can be remedied with a more efficient automated software, but you and your HR have to have a pre-requisite investment in getting the right software.
Your HR overseeing the payroll software and processes has to be fully trained and equipped to use it, and you’ve got to be aware of the scalability of your operations. Before you choose your payroll software, educate yourself on the options and vendors available and find a software that is flexible enough to fulfill the demands of your company. More than that, you’ll need to factor in the total cost of ownership (TCO) that’ll include items such as license fees, system maintenance, and potential non-labour costs for the required technology, consultants and facilities. You’ll want an efficient, trust worthy software vendor. So before you select your software, consider the research, necessary processes and costs that will inform your decision.
PAYROLL SOFTWARE
Your HR team will need a software that can securely automate the work they have to do. As we’ve seen, you have to find the software that is adaptable and can fulfil your company requirements. There are some important features to bear in mind when selecting your software. Firstly, you’ll want to consider scalability. The payroll software you’re using now might meet your criteria, but as your company expands and your workforce increases, the software you use has to able to keep up with demands and might be outdated in a few years time. Mobile integration that allows your employees to access a payroll portal where they can monitor their hours and wages will prove as a very useful payroll tool, for any small scale or large scale business; you may also want to give your employees access to things such as pay stubs as well as W-2 forms.
Security is another vital component of a successful payroll software. There are basics you can look out for that Sage (The Complete Buyer’s Guide for Payroll Software) highlighted in some of their recent research. You want to look for security features that are password-protected, restricts user access to employee records alongside an encrypted database that will prevent third-party products from unauthorised access. Sage also recommends your software has field-level security and comprehensive audit trails.
FINDING A COMPANY YOU CAN TRUST
It really goes without saying that you’ll want a trustworthy company that can provide excellent customer services and quality information when you purchase your software. Usability, integration, legal compliance, scalability, customisation and accuracy are all building blocks that form a streamlined efficient software system. You might find your current payroll software just doesn’t have an integration with HMRC or with third-party accounting softwares. At Invatechs, we commit to finding solutions to your problems and expanding FinTech capabilities for all aspects of digital business operations. We’ve offered advice on calculating your taxes for the financial year, a dedicated article for reducing payroll costs and a review of some of the top payroll softwares of 2020. We focus on automation and redefining the core of workplace management through technological solutions, which has led us to creating our own powerful, adaptable, purposeful HRM management software.
INVATECHS PAYROLL SOFTWARE
We were challenged with creating a cloud-based software that could cut-out all of the recurring mistakes and problems (that we’ve seen in this article) for GP surgeries and primary care practices in the UK. We’ve already delivered payroll solutions to over 5,000 employees in the UK and are able to translate specific business requirements into functional tools. Our attention to your specific company needs and finding their solutions means more cost-efficient and error-free management tasks for you.
Some of the features we integrated into our GP/primary care practise payroll software included:
Real-time reporting to HMRC
Integration with the third party platforms Xero and QuickBooks for records accounting in journals
Software that complied with GDRP as well as two-factor authentication
Cloud-based software allowed clients to access accounts wherever they are
Autoenrolment tools for employee assessments, pension scheme enrolments/exits
Data reports exported to PDFs
Gov.uk even listed our software as one of the best official paid payroll softwares. Because we lead with thorough market research and scalability in mind, our software is curated to minimise the mistakes that are frequently made, and integrate into your corporate environment.
IN CONCLUSION
With everything we do at Invatechs, we make sure our operations, technologies and software make the work you do as streamlined and efficient as possible – that’s why our expertise and HMR management software will be one of the best tools you can use to bring an end to needless payroll mistakes. Contact us today to trial out a free demo, and put an end to needless mistakes that can hold your company back from being the best it can be.