Do you know what an online payroll system is? Have you ever imagined automating this process and thus reducing your company’s expenses with HR and accounting?
The payroll consists of a list that shows the compensation that was paid to the employee, transforming labor information into accounting data.
Its main function is calculate what each person in the company has to earn and what should be discounted. Therefore, it is necessary to be careful to do the calculations correctly.
The big problem is that many companies still use old payroll methods. To facilitate the process and make the HR and Personnel Department routines simpler, our goal with this article is to show you online payroll system options and the advantages of automating this process. Check out!
8 Reasons to Adopt an Online Payroll System
1. Get more accurate data
The payroll must contain the following data:
- employee name;
- identification documents;
- payment specifications;
- discounts (EHIC, health plan, etc.);
- maternity pay (in the case of women);
- leave and family allowance quotas.
With the automation, the data presented is much more accurate, after all, the one responsible for calculating is much more likely to fail than an online payroll system.
With a system, information is placed exactly as it should be.
Read too: Automation of HR Processes: Strategic Reasons to Adopt
2. Centralize information and data
As there is a lot of information present in a payroll, when the process is done in a traditional way, the service becomes more complicated. That’s because the person responsible will have to look for data in several places.
An example of how centralization is important: a company has hundreds of employees and every month it has to issue payrolls. However, each employee has their own specificities. By reconciling data through an automated system, the chances of error are minimal.
Incidentally, the errors avoided by an online payroll, reduces legal problems that can be caused by incorrect or incomplete information.
That’s because automation ensures that all employee rights will be insured, as well as avoiding complaints and even legal proceedings arising from failures.
3. Be more agile
Agility is a visible advantage of online payroll automation.
The manager and employees responsible for issuing the document become more productive. That’s because they can import data from systems like ERP, making the process much faster.
Need to process an employee’s admission?
Does an employee now occupy a management position?
With DP system, this is far from being a problem. Through it, it is possible quickly process the payment of employees, as well as:
- control the job and salary plan;
- register time control;
- accounting for discounts, among others.
Read too: Guide: How to control time and work hours
4. Make financial control more effective
Every month, organizations need to balance their revenues, check bottlenecks and possible improvements to be made. With an online payroll system, work becomes much simpler.
An online system allows automatic calculations Sefip (Company System for FGTS Collection and Information to Social Security) and Dirf (Declaration of Withholding Income Tax), controlling tax obligations that need to be fulfilled.
This advantage is visible mainly at the end of the year. With the arrival of breaks, payroll analysts need to organize themselves to deliver the work on time. This makes it easy to identify financial failures that could harm the company in the future.
By the way, the final months have some specifics. The 13th is one of them.
For this reason, having a solution that streamlines the process is essential.
Furthermore, by knowing which payroll systems are most used and adopting one of them in your business, you can:
- calculate collective or individual vacations;
- control advances, among others.
5. Generate reports
A DP system generates a plethora of data on several issues important to companies:
- taxes paid;
- per capita earnings;
- annual releases etc.
If, for example, they are monthly expenses requested with transport and meal vouchers for employees, the system will allow for the collection of necessary information without a headache.
I.e, it won’t be necessary to resort to mountains of papers, nor do calculations by hand and waste time with something simple.
O automatic system still allow pull reports of all payments made.
If you need to make calculations based on take-home pay, everything will be included in this financial statement. In fact, even the type of salary (consisting of shares, for example), gradual increases and changes can be accessed.
6. Get each employee’s history
A company that cares about quality management needs to have as much information as possible about each employee who provides services to it.
With an online payroll system, gathering the necessary data becomes a lot simpler. It is possible to know about:
- vacations already taken;
- schedules (integrated timesheet);
- wage adjustments, among others, automatically.
All of this is fundamental for conduct adjustments and strategies by human resources.
7. Process payrolls for error correction
Something unforeseen, such as an error in the payroll, may happen and, as a consequence, it may be necessary to issue a new payroll. With the help of online payroll system, this can be done easily.
If it is necessary to make a recalculation or if a layoff occurs, the personnel department doesn’t have to panic trying to gather all the necessary information.
The system is capable of memorize and save information for long periods.
Read too: Payroll: Know the taxes linked to this document
8. Facilitate internal and external audits
Large companies are required to undergo internal and external audits, which consist of analyzing the financial statements.
You external auditors, for example, need to find out if what was presented corresponds to the patrimony held by the organization.
The company’s financial position cannot contain any misleading information. Therefore, it is necessary to present copies of employee payrolls, and this only becomes less expensive with a proper strategy.
Most managers have a routine full of responsibilities. Given the current demands on bureaucracy, everyone’s desire is to make tasks easier and more organized. This is why it is so important to hire a quality online payroll system for the organization.
Are you looking for an efficient Human Resources platform that includes an online payroll system for your company? Meet HR Consultant UK, a complete HR software that offers, among other features:
- reduce the time in your employee termination admission processes;
- avoid penalties, fines or any risk related to legal issues and company information management;
- follow up on time and payroll;
- perform vacation tracking and more.
HR Consultant UK is the only one that delivers an amazing experience and still solves the real problem the customer has. Talk to an expert and find out how to reduce 30% of your HR costs.