You cannot afford to go wrong with payroll.
Why?
For starters, the cost of mismanaged payroll begins with harsh fines and penalties and ultimately leads to ruining the entire business.
The issue, however, is not payroll but the misconceptions hovering around it that create problems and harm businesses.
Here are 7 payroll misconceptions and truths behind them
Payroll is a one-time effort
This cannot be farther from the truth. Setting up a framework for payroll is a continuous process — it doesn’t end with setting up payroll software.
The process needs regular evaluation and periodic updates. And that’s precisely how you maximize its efficiency.
Remember to frequently audit your payroll software and the entire process.
Payroll = salary calculation
Payroll is often misconstrued as a process of paying employees for their work jobs. The reality, however, is different.
Payroll is thus much more than salary calculation.
Anyone from the HR/Finance department can process payroll
Payroll deals with highly confidential employee data so it mustn’t be handled by just about anyone.
All about tax
Companies that outsource the entire payroll process often handle taxation in-house to save costs. However, by not handing over the process to experts, they end up increasing the cost manifold through non-compliance and heavy penalties.
This is misleading. Employers must fairly withhold payroll taxes from employee’s gross salaries. The payroll team then — on behalf of the employees — pays it to the government.
Payroll doesn’t involve strategy
That’s a lie.
Payroll doesn’t comprise transactions alone. There are various strategic activities that go into making an efficient payroll process.
Payroll has no role in retaining the employees and enhancing their experience
Employees have both monetary and non-monetary motivating factors. And both affect their experience.
An efficient payroll system with accurate payments, payslips issuance, ESS portals increases employee’s trust in the organization. This inculcates a transparent culture, reduces employee turnover, and enhances their experience.
Outsourcing Payroll outsourcing is not worth it
A common misconception is that it is easier and cheaper to handle payroll in-house.
Reality – Here are the ingredients to handle payroll in-house
You’ll need
Does it look like it’s easier or cheaper to deal with the aforementioned?
The truth is, a payroll outsourcing firm takes away the payroll burden from you. They insulate the process with expertise, cut-down costs, and nullify the risk of errors and non-compliance.
Conclusion
Now you know the common misconceptions that trap you and ruin your business. The next step is to understand their corresponding truths and take one step at a time to eliminate them by leveraging the latest processes and technologies.
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