Payroll Management Software
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The
manual and repetitive work we do every month, such as creating payroll, can
sometimes lead to oversights and mistakes. Either because we take the
previous month's payroll as a model, because someone tells us aloud a change
and we do not remember later or simply because we made a mistake with the
calculator. To minimize errors that can cause us problems in the future
with the Social Security Treasury, we can count on HRMS payroll software.
Next,
we will tell you how to manage your payroll efficiently, what you should
take into account and tips to avoid making mistakes.
What is and what is a payroll for?
If
you work in the Human Resources department of your company, surely you know
what a payroll is, but it is always good to refresh the concepts.
The
payroll is a document that the company gives each month to its workers and it
specifies the salary to collect. However, payroll goes much further; it is
an invoice that reflects the relationship that exists between the company and
the employee. In addition, we find very important data, such as income tax
withholding.
In
those cases in which we are a company or a freelancer with workers, we must
take special care with the creation of payroll and know all the legal aspects.
How to manage payroll effectively?
In
a company, the most common when creating payroll from administration
or Human Resources is through two ways, with an Excel sheet or with a
program to keep payroll of employees .
Next,
we will tell you the two possibilities that you have to create the payroll of
your employees, in addition to the pros and cons that you can find:
Surely
we all have the Office package installed and use it on numerous occasions, so
there is no extra cost for making payroll. However, being a very
manual and laborious job , we can spend several hours to manage the
payroll incidents of all our workers.
These
are the disadvantages to consider:
Low
security: although it is true that we can create a password to access an
Excel sheet, we cannot be certain who accesses it . Also, if we
lose an Excel or delete it by mistake, we will have to recreate everything from
scratch.
Differences
in work methodologies: either due to staff turnover or because they have
not been properly trained, on some occasions the files may show differences
between them. This is because a fixed work model has not been followed and
resolving small differences can cost the company a significant
amount of hours .
Lack
of data analysis: as we have seen in the previous point, if we do not have
an imposed methodology, it will be difficult to analyze data, draw
conclusions or create reports.
Do
you know that you could save between 5 and 6 hours a week by using a
system to manage payroll ? Begin to be more productive by investing
your time in tasks that add more value to the company and, when it comes to
making payroll, streamline the entire process thanks to digitization.
After
looking at all the downsides of using an Excel template, we want to show you
why you should choose to use an integrated payroll management system .
· Guaranteed security: with Human Resources Management software that allows us to create and manage payroll, we can be sure who accesses the information , since we will be the ones who allow access to people.
· Convenience: having the same program from which to manage all the payroll of your employees will be much easier than handling different Excel sheets.
· Data protection: your duty from the Human Resources department is to ensure that the privacy of your workers' data is respected. In addition, you must also be up to date on all legal issues that concern your employees. Therefore, payroll software in HRMS can be very useful because it follows the GDPR (General Data Protection Regulation).
· Visibility and access to information: employees will be able to consult their payroll and documentation at any time in a secure environment.
· Cost savings: if you calculate the time it takes to create payroll and send it to each worker or deliver it by hand, as happens in some companies, you can cause those hours to generate losses for the company. With an online payroll program you can improve up to 70% the labor management of your processes.
Aspects to take into account before
preparing a payroll
Although
there are different workers who are dedicated to a function within the company,
not all of them have to have the same contracts. There will be people on
internships, others with full or partial days, others who may have extra pay if
they reach objectives, etc.
Therefore, the
way of calculating the salary will be different each time. Next, we
are going to see what you have to look for when creating a payroll:
The
contract is the document that will show us the dedication that an employee has
with the company. It is very different to have an indefinite contract than
a fixed-term one and the percentage that is quoted in Social Security will
be given by the type of contract . In addition, income tax
withholding is also linked to the contract, since it depends on the total
salary received.
Depending
on the gross salary and the circumstances of each employee, the personal income
tax withholding will be different. Whether we have children, as if we are
married or single are important aspects that will help us calculate this
withholding.
Collective application agreement
All salary
supplements would enter here , such as allowances or overtime that
the employee will receive.
Each
employee can choose the full payment of their salary in full,
once, or prorated , in 12 monthly installments. Knowing this
information will also be of vital importance to apply income tax.
Professional category and listing
group
The agreement
to which the company or employee joins will also affect when calculating
the Social Security contribution.
If
an employee has taken leave from work or maternity or paternity leave ,
it is also another aspect to consider, as it will influence the payroll.
Most common mistakes in payroll
calculation
Sometimes
it is not only necessary to pay attention while doing a task, but the way in
which we work or how the company operates can cause us to make small mistakes
or perform work less efficiently. And this can affect payroll management.
To
do this, the best thing will be to have a payroll software that helps us streamline
the entire process and with which we feel safe .
Next
we are going to see what errors or failures are the most committed when
calculating payroll:
Lack of payroll program or work system
There
are companies that outsource payroll management; however, many small and
medium-sized companies continue to do so internally.
Although
the task of creating payroll and sending it to workers is something recurrent,
it is a very repetitive activity and, for that reason, it can make us relax and
make any mistakes. Furthermore, if the documents pass through different
hands, we will not ensure that the same methodology is followed .
We
must have everything under control, since a small mistake now can cause a
problem in the future with the Social Security Treasury and lead to fines
for the company.
Mistakes in calculating workers'
benefits
There
are different variables that we must take into account when calculating
employee benefits: vacations, overtime , trainees, salary increase,
nighttime bonus, etc.
There
are changes that can occur from one month to another and, on occasions, it
is not notified in advance or it is made out loud, without recording the news
in any email. Therefore, it is necessary to have a good payroll system to
help us minimize errors.
Quick payroll without planning
It
is not advisable to leave payroll management for the last days of the month. This
can leave little time for us to confirm data and update employee information.
For
this reason, we recommend that tasks related to payroll be carried out on
the first 20 days of the month: collect information, coordinate new
registrations and manage personal income tax and Social Security settlements.
Administrative staff reduction
As
we have already mentioned, many small and medium-sized companies carry out the
task of managing payroll internally and, either because the company wants to
reduce costs or because it is a very small company, sometimes more staff
is lacking .
If
to this we add that those who are dedicated to payroll management are not
always qualified for this task, we will end up having a failure.
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