How to choose the best payroll system for your company?
A good payroll system is a very important activity in business. It is also a daily and tedious task. However, it does not generate income by itself, which is why it is ideal to do it with as little time and effort as possible. The idea is to achieve a correct payroll, without errors, on time and to reduce expenses. This is possible by implementing an automated payroll system in the company.
In this article, we are going to tell you everything you need to know about how to select the best payroll system solution that adapts to the characteristics of your business.
- What is a payroll system?
- What is the function of a payroll system?
- Advantages of having a payroll system
- Main characteristics of the best payroll systems that exist today
- How do I know if I need a payroll system in my company?
- How can we help you to select the best payroll system solution for your business?
1. What is a payroll system?
It is a digital program, hosted in the cloud or locally, for the management of a company’s payroll and information storage. On the other hand, the payroll system is a software that is designed to automate payroll processes, such as managing wages, salaries, deductions, bonuses, and taxes. It can also search and display time off, employee benefits, and other labor concepts.
Another concept of a payroll system refers to a computer program, usually hosted in the cloud, designed to manage everything related to a company’s payroll. Its main advantage is that the generation of payroll, and all the calculations that this entails, are carried out automatically. Thus, reducing the workload of the responsible team and the margin of error.
For that reason, it will optimize your human resources management by allowing you to file all the corresponding data of your employees such as their hiring documents and generated payroll. Therefore, automation of your payroll management offers you instant advantages in terms of time, cost, accuracy, and organization. Since it reduces the workload of your response team, by automatically performing the respective calculations in a matter of minutes.
2. What is the function of a payroll system?
If you do not have a payroll system in Dubai, you must keep in mind how it works. So that you can later evaluate whether or not you should implement one.
Therefore, payroll is a procedure that has several functions. If you still do not have them clear, we will tell you below. Here you can see all the benefits that a payroll outsourcer system in Dubai can offer your business.
2.1 Collect information
Payroll systems are very powerful tools that can be able to store a lot of information. The initial stage of the process collects important information from employees to carry out payroll such as personal information, forms, certifications, and income process, among others.
2.2 Manage the time of employees and processes
Also, with a payroll system, you can record the hours and time worked by your employees. In this way, the system performs the respective calculations to make the payroll payment either monthly or fortnightly.
2.3 Automate payroll processes
Once you have all the necessary information to carry out your payroll, the software automates its processes. So that you can count on the preparation of your payroll at the right time you need it. The only thing you have to do for this is to update the information, verify that everything is as it should be, and approve your payroll.
In this sense, payroll systems in Abu Dhabi are useful for carrying out payroll for any company. These types of systems are essential so that the settlement of the payroll does not stop being one of the most important tasks of your company, but at the same time, it does not involve too much time.
Automating payroll management becomes a key element for any modern company. Not only will you not worry about having to carry out the process manually and making mistakes. You will also save time and have quick access to the information you need in real-time from anywhere.
2.4 Control of taxes and withholdings
You must keep in mind that the net payment of a worker must be calculated based on gross income, discounting the total amount of deductions stipulated by law. Therefore, this is a complex issue that generates many errors when payroll is done manually.
For that reason, with the implementation of the payroll system in Abu Dhabi, you will not have these problems because they are updated at the right time, accepting the new guidelines for your business’s payroll.
2.5 Make the respective payments
Depending on the payment method of your payroll system, the calculated payroll amounts will be sent to each entity. In other words, payroll software is linked to banking entities to link your accounting system to your payroll.
You must bear in mind that as an employer you are responsible for part of the payroll taxes. For this reason, you must be aware of this legal aspect, to avoid possible fines or sanctions by the competent entities.
Software is constantly updated based on legal regulations, something that does not happen when you make your payroll in Excel or other types of obsolete methods. In these cases, you depend 100% on the knowledge and updating of the person who makes this job.
2.6 Prepare payroll reports
In this sense, a payroll system is compared to manual payroll preparation. It is easier to have the information you need related to payroll. You can have these reports in a matter of minutes and just at the moment. You need to know the information to make decisions of vital importance for your company.
2.7 Register and store your payroll
Another important aspect of a payroll system is the ease to register and store your payroll. This is because many hosts their information in the cloud, which is one of the most reliable and secure services. But others use the storage system of your computer, which can make the information more vulnerable and you cannot access it when you want.
3. Advantages of having a payroll system
The advantages of having a payroll system depend on the number and complexity of processes you have in payroll management. However, here we mention some of the most relevant advantages that your company will obtain:
- Greater efficiency and control in processes related to payroll management.
- Greater precision in payroll management and calculation.
- Maximizing the productivity of the people in charge of these processes in the company.
- Reduction of time, translated into administrative personnel expenses.
- Significant decrease in errors.
- Greater protection and security of employee information.
- Transparency in the settlement and management process.
- Simple and intuitive handling, lower learning curve, and process optimization.
- Permanent legal update.
- Facilitates communication with employees and improves the work environment.
Likewise, something really important is that currently, the software that specializes in payroll has the possibility of being updated and continuously improved, which allows them to customize reports and generate particular solutions for each need, making it key in the advancement and growth of an organization.
For that reason, payroll software can be scalable. That is, it will support and resist the passage of time and will adapt to your growth rate. Therefore, you must think beyond the short term and anticipate future needs such as user growth, employees, branch growth, etc. For this, payroll should not continue to be done with old techniques, today companies must implement technology in their processes or they will not reach a higher level.
In addition, a payroll system will be an efficient solution to the challenges that this process proposes and will increase the competitiveness of the organization that implements it. One of the main advantages is that it does not matter what kind of company you have, or the number of employees you liquidate, it will adapt to your requirements and needs over time when you require it.
4. Main characteristics of the best payroll systems that exist today
There are different payroll systems with the ability to automate multiple cases, data entries, and mass processes to successfully manage all the information related to salaries, costs, personnel, and absenteeism that are handled in payroll procedures.
On the other hand, they have a complete functionality that takes into account the different regimes of the workers for their respective calculations. Likewise, these systems have integrated document management, circular generators, alarms, and user-configurable control panels.
In addition, this software has a web access portal for office managers and clients to speed up decentralized data entry and consultation. For their part, the best payroll systems handle your payday and tax problems. Thus, you can schedule and run payroll automatically
Also, they must handle tax calculations and then file and pay them. Because of that, the best payroll systems should provide excellent and immediate solutions and a variety of options that make managing your company’s payroll as easy as possible.
For example, you can use this type of software for activities such as supporting salaried and hourly employees, paying your contractors, making easy payments and reimbursements, and processing flexible monthly, bi-monthly, or bi-weekly payment frequencies.
On the other hand, these systems should also offer you advanced payroll functions, such as payroll reports, which include payroll history, contractor payments, bank transactions, tax payments, and more, and allow you to download all these activities.
5. How do I know if I need a payroll system in my company?
Are you still doing payroll with old practices? Are you still leaving all the responsibility to a single person to carry out the payroll process and management? Or maybe you are paying third parties to take your payroll, which implies an expense and that the information of your company is in the hands of others.
How long does it take to make the payroll, do managers suffer from excessive stress? There is also human error and its consequences, how much does this affect your company? Did you know that a payroll system minimizes and speeds up the process?
If the answers to these questions are not very encouraging, it will be giving you an indication that you should change the way you manage your payroll and implement a payroll system.
6. How can we help you to select the best payroll system solution for your business?
EOR Middle East is your best ally if you are looking for an excellent solution for managing your company’s payroll system. We have years of experience in the market, which gives us the knowledge to advise you so that you can correctly select the best payroll system that suits your company’s needs. We have advised large companies in the selection of payroll system UAE. Specifically, the payroll system in Abu Dhabi and Dubai
Our company gives them the support they need to facilitate their management and direction. We are the leading payroll consulting company in Dubai and the entire Middle East. Additionally, we provide other services that range from PEO solutions to relocation services.
Do you want to know more about our payroll services in the Middle East? To clarify all your doubts and receive the information you need, you can count on us, since we offer a wide range of services that will help you develop your company. We will support and advise you to enter any of our markets. You can contact us through our email, [email protected]. Or call us at +971 43 316 688. Our agents will assist you and resolve all your concerns pleasantly, so do not hesitate to contact us.
In the same way, if you are looking for the job of your dreams in a large company, send us your resume to the following email address, [email protected]. Or, you can start applying through thetalentpoint.com.