Best Practices to Optimize Use of Payroll Management Software for Globally Distributed Teams

A good payroll management system is important to keep your employees happy. Who would love to work for a company, that cannot even pay on time, or has problems when running the payroll, especially at a time like this? The ongoing pandemic has led to its fair share of layoffs. But for those companies have staff working tirelessly to ensure business continuity, it is important to ensure a timely payroll process.

Calculating salaries, deducting taxes, etc. can be cumbersome, over time, both small and large organizations have started relying on various payroll management software to add efficiency and effectiveness to the system. A Payroll management software offers an error free method to calculate salaries and the disbursement is integrated in the system conveniently.

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An efficient payroll management software system is beneficial for both the organization and employees. The prominent advantages of an efficient payroll system are:

  1. Improved morale of employees: A regular salary is the least an employee expects from his or her organization. Late payrolls will lead to attrition, thereby affecting the overall growth of the companies. With a good payroll system in place, the employees always feel secured and financially stable.
  1. Lower tax bills: Having a fully functional payroll system will not only boost the morale of the employees, but it will also help the company to minimize state- and nation-wide taxes. Payrolls are governed by many regulatory compliances, failing to pay them on time can lead to hefty fines.

It is easy to install a new system, nonetheless, implementing it and optimizing it in the long run is often difficult. While talking about implementing the best payroll management software in the organization, we should not forget that the effectiveness of any system will be determined by the results it produces.

If you have already installed one such HR system, and are looking forward to optimizing it for your global workforce, here are the ideas you should look forward to:

  1. Align various pay schedules

While we talk about optimizing your payroll system for the global workforce, it is important for you to align various pay schedules. For example, you should fix one date when all the salaries will be credited to all your employees’ account. No matter any employee is working from home or working from your outshore office, pay schedule should be the same for both of them.

  1. Streamline payroll and accounting systems

Along with payroll management system, there are other accounting software that help in disbursing paychecks at the end of the month. Before you get any new payroll management software, you should see to it that it is compatible with other already existing accounting software. 

  1. Go green with paperless payroll systems

Like most companies wishing to go green, when you look forward to following a social initiative, you should implement a paper less payroll system where every transaction is digitized. A paper less payroll system will ensure accuracy, cut costs and improve security of your company’s transactions.

  1. Training and Development

While you implement the best payroll processing software for your global workforce, you should train your HR members and specially, the payroll staff about the software. Payroll management is not static and the changes in technology, tools and services, salary changes and the changes in local regulations keep payroll personnel on the run always.

  1. Complete knowledge of rules and regulations

We already stated that payroll is a critical HR function and payrolls are governed by compliances, different local rules and regulations. Failing to meet the compliance may lead to devastating affects on the organization. Out of all the compliances, the payroll tax filing is an important one. Stay abreast with the latest changes in the payroll regulations and try to abide by them.

  1. Outsource the payroll function

Surprisingly, this is a new development in the outsourcing industry. Companies have started outsourcing their payroll functions as well. Outsourcing the payroll comes as a cost-effective option. It is because various companies do not have extra time and money for the overhead costs. Payroll outsourcing companies already have different systems implemented and for your distributed, global workforce, outsourcing seems to be a better option.

  1. Upgrade your payroll management software

It is important to stay abreast with all the latest innovations and developments in the industry. If you have a system installed in your organization, you should keep on upgrading it regularly to streamline all the existing systems. With newer, innovative and state of the art technologies, you will witness a decrease in the time spent by your payroll staff in the overall payroll processing.

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At the end, we would like to suggest that you must always stay up to date with the technological changes and try to adapt to the latest ones. The companies, which are able to incorporate the latest developments and tweak their organizational structure stay on top of the competition when it comes to acquiring and retaining talent always.

It is always beneficial to follow the best HR practices in place within the industry to ensure a smooth-running payroll management software implementation and execution.

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