Over the years, organisations have been adopting new enterprise solutions to improve essential business functions. The human resources department was not left behind with digital transformation improving the recruitment process and employee scheduling systems. Unfortunately, the payroll delivery in many companies still relies on printing cheques, managing working hours and payment schedules manually. While manual payroll processing can work in small companies, as your organisation grows, it becomes challenging to keep up with many employees, complicated government regulations and tax policies.Many companies are embracing modern payroll processes that will transform the function into a critical source of performance insights. With hygiene and safety standard being critical in many companies, the new payroll delivery methods can also minimise personal contact. Let’s look at the methods and benefits of modernising your payroll processes with payroll integration.
Using Digital Solutions for Funds Delivery
Thanks to financial technologies, companies have access to an electronic funds transfer that is efficient and less expensive. Some of the tried and true digital solutions for payroll delivery include:
Direct Deposit
When you are using paper cheques, you have to hand an employee their wages physically. If your workers aren’t in the office, you have to mail them. Instead of incurring postage fees, you can use direct deposit to transfer salaries into each employees’ bank account. The method uses electronic fund transfer to remit money to various bank accounts, and your workers will receive money from anywhere around the world. The convenience it provides makes it a popular payment method. However, you must use digital payroll processing to ensure you don’t miss the time frame for processing the payments. Apart from the setup costs, you also have to pay some fees for every transaction.
Pay Cards
A payroll card acts like a prepaid card loaded with the salaries for a specific pay period. It works like a debit card, and your staff can withdraw the money from an ATM or bank cashier. Unlike a direct deposit, which requires a bank account, your employees don’t need any banking information to access the funds. However, you will cover the setup costs and any fees charged to the employees’ cards.
On-Demand Pay Solutions
With the increased financial strain on workers, you need flexible ways to pay employees instead of sticking to the traditional pay cycle. On-demand pay solutions allow employees to access their wages through an online or mobile platform. Some companies avail the wages during a specific wage period while others calculate the amount owed to the worker at any time of the month. The flexibility of receiving wages before payday reduces financial stress and reliance on credit card loans.
The on-demand pay solution also benefits employers since it minimises disruptions in cash flow often caused by employees cashing in their cheques at once. Providing flexibility to employees and control over their finances can also improve engagement and reduce turnover.
Mobile Wallets
Remitting salaries through mobile wallets is increasing in popularity as it offers convenience to employees. Since you will deposit the funds to the employee’s mobile accounts, they don’t need a bank account and can access the funds anywhere. Besides, the transfer charges are minimal and will cut your expenses, but the employees may incur charges when withdrawing money.
Using Payroll Integration to Automate Payroll Processes
When modernising your payroll process, the Payroll Integration software from Advance Systems can help create an efficient system. The software uses employee records and payroll software to create a payment system. Our Integration software is also customisable to suit any organisation and different payment cycles. Companies can also incorporate different tax brackets, pay groups and offer unique employee benefits to ensure compliance with the existing legislation.
Apart from gathering employee data, payroll integration can incorporate clock in cards and other clock-in systems to ensure you pay each worker the correct salaries for the shifts covered. With data integration, the payroll managers will spend less time processing payments and maintaining compliance with the relevant labour laws.
What Are the Benefits of Modern Payroll Processes?
Digitising your payroll process provides numerous advantages to your company and employees. When you ditch printing cheques, you will use fewer papers to process employee salaries, promoting a greener planet. You will also improve the financial wellness of your employees and increase convenience in accessing their wages. For instance, they don’t have to queue at a bank to cash in their cheque or use credit card loans since on-demand pay allows them to access advance salaries at any time.
The modern payroll systems also reduce your labour costs and expenses involved in printing and mailing cheques. The manual processes and bookkeeping involved in writing cheques are labour-intensive, which means you will pay more employees. However, digitised payroll systems are less expensive, and you only pay the setup costs. Besides, the payroll system generates most of the information, which means you will hire less staff.
Conclusion
In a rapidly evolving work environment, you need to reinvent your payroll process to maximise efficiency and convenience. You also need a system that assures your employees of their financial security and provides hassle-free access to their payments. The Payroll Integration software from Advance Access can address your payroll problems and provide an effective system for managing salaries.
