Without the right technology, payroll processing can be a major burden. Not only is it time-consuming, but it increases the risk of errors which can spark compliance issues and associated costs. HR reports indicate that a third of employers make payroll errors, resulting in millions of dollars lost yearly.
Generally, without appropriate software automating the processes, the payroll team must complete manual re-entry, which is time-consuming and error-prone. For example, Eunice works as an HR officer for a company with 220 employees. Forty-five of them are salaried, while many work under complex shift programs. Seventy of the hourly employees work in 24-hour programs.
Part of her duties includes processing the payroll for the company every two weeks. Before the company moved to integrated HR software, the day after the pay period was usually crazy for Eunice. She would be stuck to her desk the entire day, manually re-entering the timecard data into the system, factoring the deductions, doing the tax computations, and preparing checks and funds transfers.
Eunice would be exhausted by the end of the day, an experience that made her dread whenever two weeks came to a wrap.
Does her story sound familiar?
In this article, we show you how investing in the right software can help you integrate your processes for faster and error-free payroll processing. From time collection to payroll processing, funds transfer/check printing, and tax computations, you can streamline the process with the right software and cut your time spent on payroll to a fraction.
What's the Problem with Manual Re-Entry?
While investing in your current software may have increased efficiency in your HR to some extent, if it does not integrate the processes, you have not fully optimized your function. Not forgetting you're still exposed to errors and the associated risks. In short, if your payroll processing is taking up too much of your time, your software is the problem.
Here are possible challenges of manual re-entry.
Let's face it. Re-entering data manually can take long hours, especially if the company has tens or hundreds of employees. If you process payroll more than once a month, this can translate to tens of hours lost to repetitive manual processes.
However, you can eliminate the unnecessary re-entry work by integrating your processes. For instance, an automated timekeeping system can be integrated with the payroll processing system to create a cohesive flow of HR tasks and save time.
Running with manual timecards increases the risk of wage theft, as employees can log in the wrong figures on their timecards. For instance, if some workers keep arriving late and leaving early but entering the usual time on their timecard, you end up overpaying them for time not worked, which can cost the company thousands of dollars every month.
When employees log in using the automated timekeeping system, e.g., on their mobile app, you can detect their location thanks to the GPS, which minimizes the chances of cheating. Ideally, an automated timekeeping system helps enhance timecard accuracy and significantly eliminate wage wastage.
Increases Human Error
Manual payroll processing makes human error inevitable. As earlier mentioned, a third of employers make payroll errors. Unfortunately, half of the errors are only found after an employee complains, meaning if they do not learn about them, they go uncorrected.
Even with stringent measures to enhance accuracy, such as double-checking, you can never lack errors that escape the human eye. Especially, payroll processing is usually taxing for many HR functions, as the teams have to work long hours to finalize the wage computations and dispatch the paychecks on time. This increases the possibility of fatigue-caused errors significantly.
Manual re-entry can also land you in trouble with the authority for non-compliance. For example, if there are undiscovered timecard errors, you could have erroneous FICA withholdings, attracting fines.
Generally, manual re-entry exposes a company to many risks. But they can be avoided by investing in the right software.
The Solution: Cloud-Enabled, Integrated HR Software
Cloud-enabled integrated HR software resolves the challenges of manual re-entry.
Let's look at some of them:
- Integrating timeclock and payroll processing – With cloud-enabled HR software, your timekeeping and payroll processing are integrated, eliminating manual re-entry and enabling your team to process the payroll faster.
- Eliminating paperwork errors – A cloud-based HR software minimizes paperwork as the records are stored digitally. It also eliminates manual payroll preparation, drastically reducing the risk of paperwork-related errors.
- Real-time performance evaluation – An integrated HR software allows you to track employee performance in real-time—no more entering data manually for analysis and report preparation.
- Location-independence – With the rise in remote and hybrid work arrangements, cloud-enabled HR software allows teams to conveniently prepare the payroll from anywhere, thereby increasing efficiency.
- Ensuring compliance – Integrating the timekeeping and payroll processing system eliminates errors in employee hours. This ensures you remain compliant with the labor laws by paying overtime, adhering to the minimum wage requirements, and computing accurate FICA withholdings.
Generally, integrated HR software provides seamless management of employees (working onsite and offsite). For instance, an automated timekeeping system offers different time-tracking experiences, including a mobile app, web clock, biometric, employee PIN, and badge card swipe. With the different types of verification, you can easily manage even offsite employees to ensure they're logging accurate hours.
Does this feel like what your company needs to stay on top of your HR and payroll?
Then Zamp HR has the solution for you. We offer best-in-class HR software that integrates payroll, time & attendance, benefits enrollment, employee self-service portals, and an applicant tracking system.
To learn more, access our demo.