Best payroll practices are important to ensure that the employees are paid correctly, that the payroll is run efficiently and that the payroll department is seen as a contributor to the efficiency of the company. This is one reason that many companies prefer to outsource their payroll to companies that have perfected the science of efficient accurate payroll management.” says Ian Hurst (owner of Paymaster).
The six strategies for payroll best practices are:
1) Compliance and addressing statutory requirements. – Companies need to prepare for imminent new SARS legislation and reporting requirements expected to come into force next year, or face compliance issues and an administration nightmare if their payrolls are not geared up for compliancy. SARS are requiring employers to report on payroll matters more frequently (twice next year, quarterly the year after and monthly in due course) to ensure that they are aware of defaulting employers much earlier. If an employer does not properly comply with these SARS requirements they could be in line for the hefty new penalties that have recently been legislated, including a penalty equal to 10% of the total PAYE that they should have paid in a tax year.Another good reason to leave the payroll processing to the experts.
2) Streamlining business systems to help you build efficiency and improve your business’s ability to focus on its revenue generating activities. In these deteriorating economic times, improving the efficiency of business procedures (including payroll) becomes a necessity.
3) Integrating payroll with other systems and migration to the web – Integrating all computer systems in an organisation with each other saves manual effort in extracting data from one system and then inputting that data into another accounting system. Paymaster on line integrates into all your systems giving you the access you need to efficiently import all your payroll data into your company administration systems
4) Customised payslip collection and employee self service removes the burden of administration from management and empowers the employee to control their own information. On line leave applications and approvals make leave management a pleasure.
5) Weighing up the pros and cons of outsourcing your payroll. Smaller employers in particular will find in possible to use sophisticated software made available by Paymaster on line to access all their human resource and payroll data while leaving the processing and compliance to the experts.
6) Building effective reporting and analytics into payroll systems – The reports available from many payroll systems are poorly designed and virtually unintelligible to the recipient. Professional looking reports (including payslips) which are easy to understand improve employees’ perceptions of their employer. Modern payroll programmes make the writing of reports to meet your needs as easy as picking the information you want and the reports are available in a host of formats including excel.