With COVID-19, the globe is facing a double blow, termed a “Pande-cession.” The pandemic is still around, and India along with the rest of the world is experiencing a catastrophic financial crisis. The previous shutdown had a negative economic impact on India. These consequences can be seen not just in the economy’s rate of growth, but also in the pay and wage statistics of millions of employees.
Companies all over the world are striving to maintain their income stream and seek clarity as to what could represent a strong solution to cope with COVID-19’s short- to mid-term consequences (6-24 months), even from a business and employee management viewpoint, in these unpredictable times. While remote work has apparent advantages in terms of saving money on commercial space, it also has drawbacks in terms of operational complexity and productivity.
In this guide, we’ve attempted to provide some insights on how the COVID-19 outbreak has impacted various industry pay and compensation frameworks as well as how your business can thrive with the power of payroll.
Payroll management appears to be a simple operation including the consolidation of hours worked, the calculation of wages owed, and the distribution of pay checks, followed by the updating of recorts. But when it comes to payroll management, however, each company faces its own set of issues.
According to a recent Deloitte surveys, reporting taxable compensation to local payroll, taxable income obligations, and year-end processing are one of the top obstacles that organisations need to overcome, with nearly 35% of respondents stating that maintaining the precision of computations for regular or additional pay is a major issue The most prevalent difficulties and obstacles faced by the payroll industry are
Payroll administration is challenging due to numerous tax rules, but it is important to follow the right practises when it comes to payroll and compliance.
Non-compliance can result in significant penalties or legal implications, regardless of the reason for not following regulations or not reporting taxes precisely and on time.
Payroll processing manually takes up a lot of time and effort for any business. These hours spent by payroll professionals preparing data, double-checking worked recorded hours, dealing with government regulations, and calculating the intricate details of compensation and deductions should be better spent on other critical activities.
Furthermore, due to a large amount of documentation involved, the entire process is prone to errors, placing a significant burden on HR.
When it comes to keeping sensitive employee data in clumsy spreadsheets, security is a significant issue. Fake salaries and incentives, having ghost workers, or feigning esses to claim insurance are all examples of payroll fraud Manual paynail processing raises the risk of data mismanagement and data loss.
Payroll processing can be difficuit, especially if a company hires a large number of employees or migrates from manual systems to cloud servers. Even though obstacles to tackle may differ depending on the organisation, the five most significant issues outlined below are common to everyone.
You must keep up with any legislative changes that may affect your business and ensure that you are always fully compliant with the legal provisions. Companies should keep a close eye on regulatory and statutory revisions and perhaps even set up frequent checks to make sure that they are constantly on good terms legally.
Payroll risk is fairly frequent, and it affects a large number of firms. Payroll operations need detailed records, an authorisation structure, a clear plan, and risk and catastrophe protection Payroll Procedural Documentation, Approval Workflows, Payroll Checklist & Validation, Approved List of Input Providers with Mechanism of Variable and Adhoc input Collation, and Post Processing Audit Logs are all major risk areas where firms must focus.
You could choose to outsource payroll management or put up a proper online payroll system if you’re just getting started with this technique, it could be quite costly. Doing your research before choosing a reliable payroll management system and selecting the most cost-effective vendor can pay off handsomely.
Employees’ morale and general productivity suffer as a result of manual or antiquated payroll solutions, which force them to spend the majority of their time performing repetitive, tedious chores over and over again. It also makes generating reports and sharing information inside the firm a challenge Payroll partners should develop solutions that reduce manual labour, computations, and eventually focus on eliminating employee-driven mistakes, which can lead to even more serious payroll concerns
A payroll partner should be able to store previous records, whereas the payroll system should have built-in capabilities that allow for future entries. In addition, your payroll partner must be able to track bonuses and salary cutbacks, unpaid leave, maternity or sick leave, and other routine duties.
Accuracy and agility are the trademarks of dynamic, strategic workers in today’s highly competitive economy. Things are moving quickly and executives and employees are expecting instant responses. This is one of the reasons why cloud-based management systems are so popular.
In 2020, IDG discovered that nine out of ten businesses have already moved or planned to migrate at least some of their programs or computer infrastructure to the cloud in the coming year. IT is frequently the driving force behind cloud adoption, Cloud system maintenance is significantly less of a load for the in-house IT team, and cloud systems offer advantages in terms of speed of development, future upgrades, and return on investment.
Although it is rarely HR’s responsibility to drive an organization’s technology strategy, there is factual evidence that HR ought to be enthusiastic about adoption.