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Why do you need an Online Payroll System?

Let’s be honest. Paychecks are crucial.

Sure, we follow our passions, but let’s not ignore that rent, bills, and groceries also matter.

The payroll department is your business’s unsung hero, ensuring employees are paid correctly and on time.

In today’s fast-paced business environment, payroll is more than just crunching numbers.

It’s a complex task involving tax compliance, regulatory changes, and keeping employees satisfied with timely payments.

Handling all these elements can turn payroll processing into a nightmare. This is where an online payroll system becomes your best ally, and this article will explore eight compelling reasons businesses should invest in an online payroll management system.

Accurate Calculations

Payroll mistakes can be costly financially and in terms of legal repercussions and employee trust.

According to a report by Ernst & Young, one in five payrolls contains errors, costing companies an average of $291 per mistake.

These errors can lead to significant financial losses and damage employee morale and the company’s reputation.

Investing in a reliable online payroll system ensures accurate calculations of wages, overtime, and tax deductions, minimizing the risk of errors.

Centralized Payroll Processing

Managing payroll for multiple companies can be time-consuming and prone to errors. The 2021 Ernst & Young Global Payroll Report found that businesses using various payroll service providers face increased reporting challenges and inefficiencies.

A cloud-based payroll system can simplify these processes by centralizing payroll management, reducing the number of providers needed, and ensuring consistency and cost savings. This leads to improved overall payroll efficiency and reduced risk of errors.

Localized & Country-Specific Compliances

Operating in different countries means dealing with various tax codes, labor laws, and regulations. Payroll software that adapts to specific legal frameworks ensures your business remains compliant with local laws, no matter where you operate.

For example, if your headquarters is in Singapore but you have offices in Malaysia, the Philippines, Hong Kong, and Sri Lanka, an integrated payroll system helps streamline payroll processes across all locations, providing greater visibility and compliance.

Adherence to Evolving Compliances

Keeping up with regulatory changes is a significant challenge for businesses. The 2021 EY Global Payroll Survey found that 30% of global organizations need help staying updated on regulatory changes.

Quality payroll software like OnPay or Paymaster by Commercial Bank is designed to adapt to these changes with regular updates. It ensures compliance with the latest labor laws and tax regulations, minimizing the risk of penalties and legal issues in the country they are operating.

Automated Workflows & Faster Processing

Manual payroll processing is time-consuming and prone to errors. The 2023 HR Management Systems Market Report for Small Businesses noted that 69% of users found that cloud-based HR software drastically reduced salary processing time.

Payroll systems automate workflows, reducing manual intervention and speeding up payroll processing. It can handle payroll for thousands of employees quickly and efficiently, ensuring timely and accurate payments.

Simplified Features with Checklists

Payroll processing can be complex; Payroll Systems must provide a user-friendly interface that simplifies the process. The Monthly Tasks feature helps manage routine payroll activities, while checklists ensure that everything is noticed.

From updating employee profiles to processing transactions and managing attendance, these checklists help streamline payroll management, making the process more efficient and error-free.

Comprehensive Payroll Reports

Visibility into payroll data is crucial for informed decision-making. Payroll Systems must offer comprehensive payroll, leave, and attendance reports, providing a detailed overview of expenses and employee management.

These reports help businesses understand payroll-related data, manage resources, and make strategic decisions more manageable.

Secured Data & High Scalability

Data security is paramount in payroll management. Multi-company payroll software often includes robust security measures to protect sensitive employee information and comply with data protection regulations.

Payroll Systems must offer a secure and scalable solution, utilizing cloud storage from a reputed company like Microsoft, Google, or Amazon. Its infrastructure must support encryption, identity access, and rigorous security checks, ensuring data protection and scalability as your business grows.

Conclusion

Investing in a quality online payroll system is essential for your business’s financial health and sustainability. The Payroll Systems you decide on must be a comprehensive solution that meets and exceeds modern payroll expectations.

In the world of payroll processing, don’t settle for mediocrity. Here are the three best payroll systems for your business in Sri Lanka in 2024.

Paymaster – Paymaster by ComBank is a popular choice in Sri Lanka. It offers a robust set of features tailored to local business needs. It helps businesses automate payroll, ensuring accuracy and compliance with Sri Lankan tax regulations. Link – Paymaster

MiHCM – Microimage HCM Cloud provides a comprehensive HR and payroll solution. Its cloud-based nature ensures accessibility from anywhere, making it ideal for small businesses looking to manage their workforce efficiently. Link – MiHCM

SCPS – Sampath Corporate Payment System is an efficient way of making payments of Salaries through the bank,  supplier payments, and any third-party payments, including interest/dividend/ commission payments affected at the click of a button not only to accounts at Sampath Bank but also to any other bank. Link – Sampath Payroll

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