Let’s face it. Paychecks matter.
Sure, we chase passion but let’s not pretend rent doesn’t have a say in where we channel our fire.
Payroll department – it’s where the silent heroes of your business live, the cash-flow ninjas ensuring your employees are paid accurately and on time.
But in today’s ever-evolving business landscape, employee payroll is no longer just about pushing paper and punching numbers. It’s a strategic dance on the tightrope of tax compliance, regulatory changes, and keeping your workforce happy with money in their banks.
But let’s face it, juggling taxes, regulations, and ever-changing employee needs can turn payroll processing into a bureaucratic beast. That’s where investing in the right online payroll system becomes your secret weapon.
In this article, we explore 8 ultimate reasons why businesses must invest in the best payroll management system.
From miscalculations in employee wages to errors in tax deductions, the fallout of inaccuracies can be costly both in terms of legal, financial, and employee morale.
According to a report done in the US, ‘Cost and risks due to payroll errors: Results of the 2022 HR Processing Risk and Cost’1 by Ernst & Young, 1 in 5 payrolls contain miscalculations and inaccuracies; each error costs the company $291 to resolve. The rate of time attendance and expense-related errors account for 1,139 errors per 1000 employees, resulting in a total cost of $248,735 per 1,000 employees.
These inaccuracies not only harm the financial health of the company but can further cause regulatory and compliance issues and influence employee terminations (56%), decrease employee morale (41%), and hurt the reputation of the company (36%).
MiHCM’s payroll software, for instance, employs advanced algorithms to ensure accurate calculations of wages, overtime pay, transactions and overall tax deductions, minimising the risk of errors and discrepancies, and ultimately saving your time. attendance items, such as no. of paydays, pay cut days, ov
It allows users to set up pay periods, such as daily, weekly, monthly or even yearly and ertime days or even double overtime days.
Additionally, you can also create transactions, such as allowances and deductions, and assign employees.
And when you go to process payments, it will consider the different variables and accurately calculate the right wage for each employee.
MiHCM HR system provides an integrated attendance and payroll management system that captures clock-ins/outs, employee timesheets and overtime hours and feeds that data directly into your salary processing.
Managing employee payrolls for multiple companies can be resource-intensive and may lead to inefficiencies. Moreover, if you’ve been tackling salary calculations manually, you know firsthand the challenges, time commitment, and the potential for errors in this process.
Findings from the 2021 Ernst & Young Global Payroll Report identified that the number of countries your business operates in has a direct correlation to the number of payroll service providers you will use.
Additionally, companies that employ six or more providers are twice as likely to report challenges in global reporting and data. However, organisations would prefer to reduce this number by half within 2 years.
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