4 best ways to optimize payroll management that business owners should know

Payday sounds exciting to the employees, but for HR or accounting team, this process can be so nerve-racking due to the complexity of payroll management. There are many regulations to follow and many deductions to notice, while there’s still a long salary payment sheet that must be calculated correctly. How can you make payroll less stressful?

Implement the automated payroll system

Process payroll manually is a real drain on your HR department. Printed payslips are easy to get lost and seem not a “go green” senvironmentally friendly, nor the high risk of errors because of manual entries and miscalculations.

That’s why payroll software will enhance the efficiency of your payroll management. The automated system offers higher levels of data security and accuracy in all calculations, from salaries, bonuses, overtime payments to taxes. Also, you will spend less time in payroll reports, then utilize this valuable time for other higher value-added activities. Your employees can easily access their payslips and payroll history online done right, payroll automation is a win-win for both sides.

GA Advisor offers staff outsourcing service including payroll service which is flexible customized for each company’s system.

Consolidate your pay periods

Some businesses sometimes include different types of employment, from permanent, temporary, seasonal employees or shift workers, to freelancers and independent contractors. It’s also common that companies separate pay schedules for each type. Monthly, weekly or bi-weekly pay schedules may make sense on a certain level, but when it comes to payroll management, these processes will lead to duplication errors.

To minimize the risk and process payroll properly, you should pay all your employees on the same pay schedule. Likewise, as payroll is not just about calculating and paying salaries, your payroll professionals or payable accountants also need to work on other tasks, such as tax reports or compliance maintenance. So, let them spend all their attention to one important duty at a given time.

Make transparent payroll policy

Common payroll issues – such as confusions from employees, misclassifications, tax overpayments or underpayments – will be minimized if you have a precise and transparent payroll policy. It’s essential to provide your employees with essential principles regarding attendance, resignation, expense reimbursement, employee classification, salary/bonus determination, and the company scheme to deal with payroll concerns. Make your policy understandable and accessible for all employees, including your current and future hires. Also, ensure that your employees know who they should turn to when problems arise.

Encourage feedback from your employee to improve payroll management

Another way to optimize your payroll management is to ask for feedback and suggestions within your workplace. Their input will help you spot abstruse and confusing aspects in your payroll processes that require more hard works to improve. You can conduct periodic payroll surveys for all levels to collect their feedback or include it in the employee engagement survey to gain a better understanding of your employees’ satisfaction at work. This way, you can generally detect and timely revise all issues in your workplace before they become significant.

GA Advisor Vietnam, with a vision to 2020 “Helping businesses in Vietnam to have a world-class financial and human resource management system, always accompany businesses, provide the most appropriate and optimal advice.

Contact us for advice on the financial and accounting and solving cost problems for businesses.

GA ADVISOR VIET NAM

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