Recognizing and Recruiting talent to fill up the roles required to accomplish the company’s goals is the duty of the HR department. However, payroll is crucial to retaining employees, which includes deciding salary structure, compiling employee data for payroll, figuring out rules and regulations related to taxes, and other related compliances. And as you introduce payroll, you may encounter a few challenges, which we will discuss in this post.
Payroll Calculations
Every employee’s payroll computations are unique, just as they are. And therefore, the HR team’s primary task is to calculate the numerous deductions and add-ons to the final salary by calculating breaks and overtime worked by the employee. A variety of other factors are also considered during computation, including output, taxes, union memberships, and bonuses. The analysis of each employee’s data, especially when it is spread across different systems, takes a great deal of time that often suffers errors in the data processing.
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Statutory Compliance and Legislation Issues
The challenge organizations certainly face as they grow is dealing with compliance in different countries and states. The laws address employee rights, business authorization, and worker unionization. Taking all such laws into account is especially vital when processing payroll for freelancers and remote employees (which is now becoming the new norm). These regulations are reviewed periodically and assigned to the right and concerned employees so that their payroll calculations are per local law. The infringement of statutory laws leads to the organization being fined heavily.
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Data Security Breach
As the frequency of data breaches and cyber-attacks grows by folds in this technological era, privacy and data protection concerns are more pressing than at any time before. Organizations need to ensure that payroll records are well-secured and confidential since they often deal with highly sensitive data like bank account numbers, addresses, etc. but if this management is entrusted to someone without detailed knowledge of the Information Technology, then there could be a high risk of the breach with a court order.
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Counterproductive Backup
The use of technology can help you to do any kind of work more efficiently and effectively by eliminating manual tasks, integrating automation, and streamlining processes. But if you are a little more familiar with it, you might be aware that it can also be a failure at times. For this reason, your company should keep a reliable backup of its payroll data to prevent further repercussions.
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Conclusion
By now, you must have understood how important it is to invest in the right payroll management system if you want everything hustle-free. And if in any case, you are looking for a tool that can do the job for your HR team, then Zoho Payroll is the ideal choice as it can save you from all the above problems( then either it is payroll processing or is statutory compliance) and thereby enables you to carry out the financial transactions easily and securely.
We, CRM Masters, are Zoho Premium Partners. And thereby hold profound expertise in Zoho. Solutions demonstrated, implemented, and tailored by our experts for your business will indeed leverage the power of Zoho for you. Let us know if we can help you if you are also someone getting started or are already working with Zoho.