Reliable Payroll Function = Happy Talent = Flourishing Business
Payroll is more than just payment
Human Resource is a crucial operation function in all business and in many of its responsibilities - payroll is one.
Payroll covers more than just a list of people you employ and what they are paid. It’s also about the tax information and complying with legal requirements.
Most payroll guides look at this topic from the perspective of the business – such as what it can do for you and how you can ensure you comply with relevant laws.
Those are important issues, of course, but there's more to it than that.
Each name on your payroll is a person. If you treat them as an accounting ledger entry and nothing more, you might miss an opportunity to understand their needs. As a result, your business could risk under-performing.
Let's be fair - money is one of the motivator for your talent/workforce.
So it is very important to have systematic and efficient payroll process - to process claims and accurately salary calculations, among other things.
Nothing disrupts working life and staff morale like an unreliable payment system. If your employees are paid regularly, on time and with all administration completed properly, they will be happier and more efficient workers.
So if you want your business to run smoothly, you need a payroll accounting system that looks after them:
- Automated direct payments
Peace of mind comes from knowing that a bank deposit will be made on the day it was promised. So don't keep your employees waiting for their salary. Direct automated payments will ensure that there are no delays.
- Fast updates to tax codes
Your employees' tax codes can change. Sometimes that's due to new legislation affecting their income tax band. Sometimes it's due to changes in personal circumstances, like marriage or parenthood. Your system should update tax codes quickly and easily.
- Accurate tax information
Most employees have income tax deducted from their salary before they receive it. That's your job as employer, and it's important to get it right. If you deduct too much, your employees may not have enough money left to live on. If you deduct too little, they may have to make a lump sum payment to the tax office at the end of the year, which could cause them financial hardship. As well as the moral requirement to get these deductions right, there's also a legal one.
- Let your employees help
As your business grows you may have dozens of employees or more. Each time they move home or change their personal status, that information must be updated in your system. It makes sense to give employees limited access to their own information, so that they can make changes directly. This should cut down on mistakes, and you can set it up so that any changed information is checked before it's updated.
- Manage holiday accounting
Your payroll system should keep track of the number of days each year that an employee has been on leave, along with their total leave allowance and any carry-over from the previous year. You can improve workflow efficiency by letting your employees apply for leave directly within the system. Their applications can then be approved or denied by their manager, without excessive paperwork.
- Process expenses and travel claims quickly
These are costs that are incurred by your employees but chargeable to your business. Make sure your employees are reimbursed as quickly as possible – this saves any potential stress.
- Make regular healthcare, pension or superannuation contributions
These payments may not be very large, but they add up over time – and so do any errors. Good payroll accounting software will take care of these payments automatically. Benefits, overtime and sickness pay should also be handled quickly and efficiently if you want to keep your employees happy.
Now - Xero and Payroll Panda can be connected and allow your payroll data to be auto-synced with your accounting software.
Payment flexibility, effortless setup and quick claims process are some of the benefits when both software integrate and connected.
Source: Xero, Payroll Panda