BridgeBuilder HRMS Feature Highlight 2023
Payroll processing may seem like a simple process to the outsider, in fact, it is one of the most complicated and error-prone processes to most companies, and final payment processing is, among all kinds of payroll, the most tricky task to manage. As the process involves repeated checking and revalidation, a tiny mistake may affect the entire calculation, resulting in payroll errors, which may impose legal risks and additional resources to run a payroll correction. An effective HR management system is crucial to resolve the problem from its root by making the entire payroll process simpler while improving payroll accuracy by minimizing manual work and human errors.
Why is Payroll Processing Far More Complicated Than We Think?
Before HR departments can process the payroll, they need to complete an array of tasks to gather all necessary information and ensure compliance to local labour laws for effective payroll calculation. If companies are not equipped with a HR management system, HR officers may rely heavily on manual work. When a company grows in size, these tasks can be extremely time consuming and labour intensive due to rapid increase of employees. Here are some of the main challenging payroll procedures that a HR department has to deal with:
Maintain Accurate Attendance and Leave Management
Processing payroll requires accurate attendance records which involves a lot of manual recording, checking and verification of monthly records. Also, HR needs to take various factors, such as leave balance, time-off hours, overtime hours, into account to ensure employees are well compensated with money or leave entitlements, avoiding employer-employee disputes. Accurate tracking of actual worked hours is particularly crucial for companies with part-time employees (benefit entitled) whose wages are calculated hourly. Not to mention in the final payment processing, this data becomes even more vital as any unutilized rest days, holidays and annual leaves must be converted into monetary compensation. Inaccurate calculations can lead to legal disputes and extra resources to tackle missing or retroactive salaries. These tasks can be extremely cumbersome and error-prone without the help of a system.
Comply to Ever-changing Labour Laws
Governments have to update local labor laws from time to time to safeguard the rights and benefits of workers, and it is of utmost importance for HR departments to promptly respond to these changes to ensure compliance. Yet, it can be challenging for HR to follow the payroll rules due to the complexity of calculation formulas involved. They must stay alert and understand thoroughly about the updated regulations, and apply to the payroll calculation process. The calculations may involve average wages, minimum wages, overtime calculations, tax deductions, Mandatory Provident Fund (MPF), or other factors that are stipulated in the laws. The complexity may be even higher in case of final payment processing as Long Service Payment or Severance Payment may be required.
A Brand New Final Payment Processing Experience with BridgeBuilder HRMS
Understanding the challenges that most HR are facing in their payroll and final payment processing, BridgeBuilder HRMS (BBHRMS) has developed a comprehensive final payment processing functionality that can assist companies to streamline and automate the entire process, resulting in improved payroll accuracy and reduced human errors. The all-rounded system is highly adaptable and suitable for handling both monthly payroll and final payment processing, catering to any scenarios:
Long Service Payment & Severance Payment
When a company is required to pay Long Service Payment or Severance Payment to an employee, the system can automatically calculate the total amount. The system is also capable of handling more intricate cases, including situations where employees do not work for an entire month prior to their departure. This function becomes particularly helpful with the complexity arising from the abolition of the MPF offsetting arrangement in 2025 in which HR has to deal with various scenarios due to the transition. By utilizing BBHRMS, HR no longer needs to do any manual calculations, reducing the risk of human errors and enhancing payroll accuracy.
Average Wages & Retroactive Payment Processing
The implementation of 713 ordinance, i.e. average wages, aims to protect employees from wage fluctuation and prevent unfair reduction of statutory entitlements by calculating wages earned over a period of 12 months. Such calculation involves complex formulas which are extremely difficult to calculate manually due to diverse work patterns and complex salary structures consisting of elements such as basic salary, allowances, overtime pay, commissions, and bonuses. BBHRMS offers profound domain knowledge for businesses to save time and effort in this process. Moreover, the system can handle any backdated payment to prevent miscalculation.
Seamless Integration with Attendance Module
BBHRMS provides seamless synchronization of attendance data by extracting information from roster, leave, and attendance modules, and integrating to the payroll engine for automating payroll processes. When it comes to final payments, the system comprehensively considers multiple factors, such as unused leave entitlements, overtime hours, special attendance allowance, with the ability to integrate data. By eliminating the need for manual collection and integration of attendance data, BBHRMS significantly reduces the effort required in payroll processing and minimizes the potential for human errors, thereby enhancing payroll accuracy.
All in all, automated payroll processing proves to be the optimal solution for companies, not only in managing monthly payroll but also streamlining the final payment process. By leveraging advanced systems like BBHRMS, companies can benefit from improved accuracy, guaranteed compliance, reduced human errors, and enhanced efficiency in handling payroll-related tasks. It’s therefore the time for companies to reconsider their current human resources workflow and adopt new technologies for sustainable business growth!