Heading away with digitization, work adaptability increased the competition of skilled employees, leading to some immense changes in the financial capacities in 2021. Due to the current situation, the way companies are handling has drastically changed with flexible working policies. Employees have the freedom to choose, and payroll continuity has become of the utmost importance.
Globally one in three employees say that they are paid late. The ADP research institute has found that employees cannot realize if they are paid incorrectly as their payslip confuses them. Handling payroll even with the help of the software isn’t easy. Many problems can arise while rolling out compensation. However, if the issue is recognized early, it can be prevented.
Leveraging payroll software should be adopted by every organization, and simultaneously learn the concerns and research well to choose the right payroll software. The senior director of Kronos says that “Many payroll professionals find themselves in a challenging predicament and forced to rely on outdated solutions”.
There are multiple challenges faced by organizations while running payroll. Many companies who manage in-house payroll find its manual process prone to error, whether it is a small or mid-sized company. Low visibility and quality of data can hinder the reporting capability of decision-making. Along with this, there are many hidden costs associated with the process that includes time spent collecting the data, validating, and solving queries. These systems are not automated and are often not a part of the company–employee relationship. Let’s discuss the most common and known payroll concerns of all times and trending in 2021.
Payroll Concerns in 2021:
1. A few Payroll issues include misclassifying employees, processing late payroll, and processing information inaccurately. There are many types of workers that include freelancers, full-time, and part-time employees. The correct classification is important as each has varied tax requirements that report to the regulatory tax agency. For example, if a part-time employee is classified as a freelancer, that employee may fail to avail of certain benefits.
2. On the other hand, the biggest concern for every employee is that they aren’t paid on time. When payroll is delayed, it also leads to a delay in employee salary. How frustrating can it be? This can dampen productivity and the relationship with the employer.
3. One of the most common and known payroll concerns involves providing inaccurate information resulting in incorrect payment to the employee. This inaccuracy results in financial losses and leaves negativity in the company if employees are paid more. On the flip side, if employees are paid less, it causes employee dissatisfaction. These errors sometimes take a lot of time and rework manually.
The only way to avoid and prevent these concerns is to manage the payroll software well keep transparency between the employer and employee. The payroll trends should be updated and informed to the employees for a better understanding of the changes.
Spectra payroll solutions aim to provide seamless payroll services and a comprehensive Human Resource Management Solution popularly as HRMS Solutions / HRIS. Get in touch with us to avail yourself of our top-notch payroll services.