Here’s the big reason why every business MUST have a payroll system

May 13, 2019 3:28 pm

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Payroll is an integral part of every organization. Where salary and compensation is the concern, it goes a long way in ensuring the way that external stakeholders perceived the organization is kept intact. For the employees who have been identified as the internal stakeholders, it rubs off well on them when they get their pay at the appropriate time, and at the appropriate rate without error. Not only does it increase their productivity, but it also increases their willingness to put in their all.

While it may look enticing, keeping track of employee attendance and leave can be a lot to deal with. Without all these, one cannot effectively calculate the pay that each employee is entitled to. A simple solution to the headache is a payroll management system.

A payroll system is a software integrated into the core processes of the company. It calculates the payroll due to each employee, taxes, and deductions accurately and efficiently in compliance with company, tax, and other governmental requirements through an effective track of hours worked.

The need for a payroll system goes beyond the superficial payment of wages when examined critically, some of them include:

  1. Compensation, taxes and wages management: this can be described as the widely recognized use of a payroll system. With payday approaching, the system allows you to compute wages due to employees after deducting the mandatory deductions and taxes. This way, employees can be accessed fairly without any dispute, all done with just a click of a button.
  2. Employee morale: Seemingly insignificant little things over time have an effect on us. When the payment is late, employees and concerned stakeholders begin to question the organizationā€™s integrity. This leads to less productivity, hence, employees need to paid consistently and timely to avoid compromises.
  3. Report handling: Generating reports for all your employee, whether for salaries, vacation balances, headcounts, and performance is made easy with a payroll system. This way, managers can at a glance know how much they will be paying as labor cost for the period or year end.
  4. Company integrity: A payroll system ensures that an organization fulfills its obligations to the country and comply as at when due. When an organization meets with its obligations as regards taxes on time and upholds legislative laws, the image of the company is further enhanced as a stable employer.
  5. Personal data storage and forecast: A payroll system allows an organization to keep a complete record of their employees and provides forecast essential for in-depth analysis and planning costs and budgeting for the department, individuals and contracts.

On a final note, the payroll system allows you to prepare payroll with a slim chance of making errors and allows you to keep track of the actions of HR. Whether a small or large business, for a part-time employee, full time, or contract employee, payroll system makes work arrangement easy, and as a plus, can be designed to be accessible as long as you have your mobile device with you.

 

 

 

Payboy is a highly versatile and mobile Human Resources Management System that gets things done anywhere, anytime. Wondering how else Payboy can help in building your business? Find out moreĀ here!

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