The shockwaves sent off by the COVID-19 havoc have been very intense and in these heavy seas of economic turmoil, many businesses seemed to capsize terribly. The long-held myths of successful business continuity with the traditional approach began to evaporate in the wake of the pandemic. As a result, companies have started mobilising to a more resilient and flexible approach to tackle unanticipated threats head-on.
In these tough times, managing payroll has been a burden on the payroll teams, as emergency legislations kept rushing through on a daily basis. Businesses operating in a single region were undergoing significant changes regarding its payroll policies, so, accordingly, we can presume the extent of strain the businesses with global footprint were experiencing when operating single-handedly, confronting challenges posed with each state and country imposing new payroll tax rates.
Therefore, companies now appear to embrace new techniques to fight the adversity by adopting new technology, opening up to digitalisation, acknowledging the use of artificial intelligence.
Briefing some of the common myths that got busted are as follows:
Organisations which were relying on written files or records, imperative for the calculation of payroll or the ones who were dependent on on-premise payroll software, experienced massive disruptions in the flow of their payroll operations as soon as lockdown got enforced and remote working was the only way left for businesses to stay afloat in this crisis.
Inability to access data vital for an organisations sustainability fostered the need to have a cloud-based system wherein all the necessary data could be stored and accessed anytime anywhere effortlessly.
When working remotely, how do you exercise it? No more registers to sign on, therefore the HR’s were having a hard time mapping the attendance of employees. To add on, an influx of new types of absences were seen topping the absence list, such as coronavirus patients, furloughed workers, etc. The increasing workload and absence of a proper attendance tracking mechanism had resulted in a payroll process gone completely Out of Order.
The only solution to this is switching to a smart digital attendance tracker leaving no room for incorrect reporting. The attendance inputs are automatically streamlined with other processes, such that the payroll for each and every employee is computed at the end of each month flawlessly and in no time.
Businesses irrespective of the strength of the employees have to undergo the same regulatory procedures for processing payroll for their people. Payroll process demands a huge amount of consciousness comprising endless compliances and obligations.
Rapidly changing laws trigger a sense of fear in the minds of the employers of ending up in compliance blunders. These gaffes might be due to any slip in the tax deduction rates, imprecise working hour counts and erroneous pay rate calculations which might occur even if you have the most qualified employees on board. Therefore, leaving the employers petrified with the thought of getting horror-struck by draconian non-compliance fines and penalties.
Additionally, as the businesses begin to scale up, in the long run, the complexities keep multiplying and the need for a big-fat in-house team grows manifold. Now, a larger in-house payroll team implies a substantial amount of miscellaneous expenses to follow,
thus, discerning it to be an unfit solution. Switching to payroll outsourcing, by and large, saves you on the extraneous costs and on your precious time too.
If you are of the notion that your employees are loyal enough to not report payroll violations or will not be bothered by the irregular pay patterns and so, you can easily escape the payroll compliance mammoth, then you are absolutely mistaken. Inaccurate pay amounts and asymmetrical pay patterns can upset anyone and everyone and not only are you losing out on company reputation but you are bound to experience high attrition rates.
Even if its a non-formal or a seasonal hire, it needs to be documented along with the associated payroll procedures. Why? Because you might be losing out on many benefits that you are eligible for. Besides this, no compromises on the minimum wage limit can be done, as this might besiege you even in the subsequent years.