Payroll is said to be one of the most cumbersome HR tasks. This is because payroll includes many details and calculations, it is therefore very easy to make mistakes, not to mention the tasks are time-consuming on their own.
The work steps of payroll management are more than complicated, from processing salary, bonus, and deductions to tracking all documents, and then from complying with labor laws (e.g. 418, 713) to all the company procedures.
Therefore, many business owners and HR colleagues have been looking for a more effective way to help manage the payroll. Even though payroll management is part of the back office work, it is also a core part of the company's operations. If the processing efficiency is low, it may lead to economic losses.
Besides, under the influence of the global epidemic, the number of employees working remotely has significantly increased, and the human resource problems faced by enterprises have also increased exponentially in which the workload even exceeds that of payroll management.
To help you improve the efficiency of payroll management, the below are 5 handy tips :
1. Organizational Processing
When it comes to any work related to numbers, the organization is beyond importance. The more organized the payroll management is, the easier your job will be.
One of the important tips is to record and track key dates in the calendar, ranging from important forms due dates to tax due dates. Not only should the deadline for the final submission of documents be listed, but also the deadline for the internal preparations to be completed. This can help you prioritize the work in an efficient way and finish the tasks before due.
2. Exploit HR Software
In fact, there are many software that can make payroll easier to manage. Nowadays, we can already use software to handle tracking workflow, including filling and leave management, to name but a few. If the company expands to a certain extent, we recommend that you try to use some HR systems to deal with human resource issues.
When your company uses an HR Management System(HRMS) to deal with problems, HR can handle all Payroll calculations and file work, helping your business save time.
3. Keep Up with the Labor Laws
If you do not keep up with the recent labor laws, such as tax laws, MPF, 418, 713 regulations, etc., mistakes will be easily made. This may lead to missing deadlines, giving wrong wages, and so on. In the end, serious problems may appear, which become a headache for bosses.
Therefore, if your HR does not understand the employment ordinance thoroughly, it is a good idea to follow an Ordinance-complaint HR Management System to handle payroll. An ideal HR system calculation should include the most updated labor and tax policies so that even novices can do payroll work easily and accurately.
4. Provide Training
One problem that many companies always face is that each firm uses its own methods to process and record the payroll. Therefore, when a company hires a new employee to assist in payroll calculation, even if the new employee has related payroll handling experience, their approaches may not suit your company. At the same time, they also need time to learn how the company handles the payroll.
Business owners should provide training for employees. Let someone on staff who has the knowledge base, ability to take care of payroll, and be informed to communicate with new staff to identify any areas of confusion and make sure they are addressed. It can improve their learning curve by mastering the peculiarities of your payroll process.
5. Enhancing the Transparency of Payroll Policy
An opaque payroll policy may create misinterpretation between employees and the company, it can cause employees' dissatisfaction and hurt morale. Whether it is that the OT claim being paid is less than expected, or employees think they should have more allowances (e.g. meal, transport). Even firms calculate the payslips correctly, but the intransparent payslips may cause misunderstandings with employees, which escalate into conflicts.
We suggest that companies set a clear payslip, listing the basic salary, commission, OT salary, allowance, tax, MPF, and benefits details. An even better solution is to have a secure online system that allows employees to view all information about their payslips. This can not only allow employees to 100% understand what their salary is comprised of at any time, but also increase their loyalty to the company by settling their doubts about payslip.
Payroll management (Payroll) actually involves a lot of work related to labor laws, calculations, and the internal organization of the company. The process is not only complicated and time-consuming, but employees also need to know a lot of relevant professional knowledge to avoid mistakes. Otherwise, it may adversely affect the company's business development.
We recommend that companies use a full-featured, easy-to-use Human Resource Management System (HRMS) so that HR can handle everything in one platform. In the end, human errors can be reduced and work efficiency can be improved noticeably.
BridgeBuilderHRMS is a well-developed management system. We have served hundreds of companies to improve their efficiency, productivity, and even business process including Hong Kong Listed Companies, Macau, and PRC companies.
FlexSystem is a business software vendor to 1 in 10 Forbes Global 2000 (May 2020) and 1 in 5 Global Fortune 500 (August 2020), operating at the intersection of new processes and ERP technologies to provide you with a practical and effective management system.
If you are interested in improving your organization’s efficiency, please contact us for further information.