What are The Steps in The Payroll Process?

A recent study revealed small and medium businesses take up to 5-10 days to resolve a payroll issue. Do you know what that means? It means it’s time to invest in a professional payroll processing company and for good reason! Most small, medium, and big organizations today are shifting their focus from in-house payroll departments to Bangkok-based payroll management organizations. Why? Apart from the lucrative financial reasons, Bangkok houses some of the best automated payroll management organizations! But as an up-and-coming small-time business owner, why do you need payroll software for a 50 or so employee base?

Let us explain how SMEs and big corporations alike are capitalizing on payroll outsourcing processes.

As a small business owner, your current focus should be on the betterment, upgrade, and expansion of your business. That means less attention to in-house teams, data monitoring, and dealing with employee grievances, and more attention to core operations. At a time like this investing in payroll services can help you save major in-house payroll maintenance expenses.

As a medium or reputed business owner, you can’t risk silly manual errors and repeated delays in compensation disbursement. It reflects poorly on the company brand and may also hamper employee productivity. That’s why these businesses are shifting their complex and time-consuming payroll processes to professionals who can get this job seamlessly done.

Now before we show you how payroll processing software works, let us start with a brief introduction of the process.

What Is Payroll Processing?

If you’ve ever worked a 9-5, what’s that one thing that you’ve always looked forward to? Your bank account flooding in at the start of every month! That is payroll processing. When you work for a company, you are under that company’s payroll which calculates your wage disbursement, holidays taken, overtime, tax deductions, and more. The entire gamut of payroll processing is extremely complicated, considering it involves end-to-end payment management and record-keeping. The process starts with compensation calculation, complying with company rules, adding bonuses, tracking deductions, and finally ensuring all the compensation gets disbursed to the right employees. Because of the complicated nature of this business, current technology is automating the entire process in the form of payroll processing software, managed and supervised by professionals.

But how does a payroll process work? If you’re curious about investing in an automated payroll processing company, let us show you how the process works.

Payroll Processing Steps Explained

What happens when your payroll process is in-house? You have a team of employees collating data, storing them in different files, be it offline or digital, and then computing the results before disbursing the compensation! The good news is that payroll outsourcing organizations work the same way, but there are a few process differences that set them apart! Here’s how payroll outsourcing companies process payroll.

Step 1: Validating Your EIN

What’s an EIN? It’s your Employee Identification Number, a unique 11-digit number that acts as an identifier of your business. Usually, the revenue department in a state or country assigns these numbers to verified businesses that register themselves officially. The EIN number is crucial for tax and compliance purposes, and that’s what your payroll company will verify before they continue.

Step 2: Collating Employee Information

When you onboard a new payroll company, the second thing they’ll do is get a comprehensive understanding of your employee’s strengths, including their compensation, tax brackets, grounds for deductions, bonus packages, annual perks, and more. This will also help them calculate their charges better.

Step 3: Showcase Payroll Plans

There’s no one-size-fits-all approach when it comes to payroll processing. Every company has its unique problems and resolution paths. Nevertheless, 90% of the payroll problems follow one single pattern. That’s why professional payroll experts devise payroll plans that have all the basics covered. There’s always scope for customization, depending on the type of company you choose.

Step 4: Practice Transparent Communication

A company’s payroll process contains innumerable confidential information- enough to break a company if something as volatile as this should end up in the wrong hands. That’s why practicing clear communication during the onboarding stage is super important. Do you want to keep a close watch on the payroll process? Ask for a weekly, bi-weekly, monthly, or annual plan. Do you want selective access and complete control of who gets to see your data? Choose your level of privacy beforehand.

Step 5: Integrate Process With Existing System

This is one of the most crucial steps in incorporating a new payroll processing vendor into your system. To make the shift easy for you, many professionals opt for payroll processing software that can easily integrate with the system without causing any system lags. You wouldn’t want valuable data going missing or everyday operations coming to a halt just because there’s a new system in place.

Step 6: Computing & Disbursing Compensation

Once you have cleared all communication and security checkpoints, it’s time to compute, collate, and disburse the payment. This is when your payroll expert will collate all the multi-tier employee bases, compute deductions and bonuses, consider tax breakdowns, and proceed with the compensation disbursement.

Step 7: Concluding Payroll Processing

Depending on the type of payroll processing package you choose, your payroll experts can help you with multiple other perks. For instance, some payroll experts will send you spreadsheet-based reports on the compensation details, profits, and losses for the financial year. Some may even help you with business forecasts and choosing compliances that benefit your organization the most.

Do You Know About Payroll Penalties?

Much like employees going against the company rules get punished with penalties, even corporations or organizations can face the same. For instance, unpaid payroll taxes, repeated delays in compensation, going against your company’s code of conduct, and failing to file Form 941 are all offenses in the eye of the law. Companies can get sued or may end up with a huge financial penalty if they don’t abide by the employee, labor, and business laws set by the Country /State. So how do you avoid these unwanted situations? You bring in a professional payroll processing company that is always on top of compliance so that you don’t miss out on these compulsory actions.

In a nutshell, payroll processing companies can not only make your payroll job easier, but they can also help you avoid landing up in a legal soup by helping you follow rules and regulations seamlessly. However, when choosing a payroll processing organization, keep a few security factors in mind. For instance, make sure the company that you’re choosing has industry credibility and is backed by good reviews and ratings from your peers. Overall, we believe investing in a payroll outsourcing expert can be super beneficial for you in the long run.

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What is HR Payroll?

There’s a lot that goes behind running an organization! There are accounts, human resources, administration, and operations to name a few! Now imagine all these data-loaded, complex procedures merging to create what we know as Payroll. If you run a budding business, by now you must have a clear idea of what payroll stands for! To simplify, it’s the intricate process of managing and monitoring employee compensation and making sure they get paid on time. So where does the term HR Payroll fit in, if these two are completely different processes? Let us explain.

Thanks to the technological advancements today, the complex processes of HR and finance can now be clubbed into one excellent software. The HR Payroll software comes with incredible problem-solving features that can not only streamline the entire process but also make monitoring and record-keeping feel like a breeze! But how does it do that? Let us walk you through the method of processing payroll through payroll outsourcing software.

How Does Payroll Processing Work?

To understand the method involved in payroll processing, here’s what you need to know.

1. Automation is the future, regardless of the nature of your business. When you automate a process, you are minimizing paper people errors, reducing data clutter, resolving challenges, and automatically updating your process as per the latest industry standards.
   
2. Instead of manually managing hundreds of data crammed up in hundreds of excels, how about streamlining the whole process through a cloud-based spreadsheet, readily available at your beck and call? That is how a payroll software system works. You have all your important data ready in a data silo, with features like access control and monitoring. For instance, imagine a digital portal that lets your employees view their overtime expenses with access control preventing them from changing any data. Only the admin or the dedicated resource team is allowed to make changes.
   
3. Now comes the most important part of the payroll process- outsourcing! But isn’t outsourcing a dangerous and expensive affair? Not if you shake hands with the right experts in town! Outsourcing is the process of handing over your responsibilities to a group of industry professionals for an affordable sum of money. In most cases, professional payroll outsourcing companies understand the relevance of data confidentiality and offer iron-clad security backed by professional payroll processing services.

What Are The Steps Involved In Payroll Processing?

If you’re new to payroll processing, we have good news for you! You are about to be part of a booming industry that is expected to grow tremendously in the upcoming decade. Did you know the demand for payroll outsourcing is expected to rise at a 6.1% CAGR value by the year 2033? But before you become a part of something big, you need to understand the skeletal backbone of the industry! This brings us to the next section where we discuss the steps that a payroll outsourcing organization follows to make your payroll problem disappear.

Steps	Purpose
Employee onboarding	Thanks to automated updates, new employees joining the team or old employees leaving the organization can be easily accounted for.
Policy Making	Get all your policies, both new and existing aligned and incorporated under one roof without manually having to do so.
Integrating Employee Data	From overtime and leave calculations, to handling multi-tier and international employees, this software can seamlessly integrate all the data.
Validating Data & Information	Once the policies and employee data are updated in the system, verifying and validating the authenticity of the data either manually or through the software will feel like a breeze.
Calculating Payroll	Now with all the data authenticity verified, the payroll process can begin. The best part? Automated payroll processing doesn’t need in-house resources.
Disbursing Compensation	After the calculation is done and all errors are eliminated, the payroll system can disburse all compensation directly to the respective employee accounts.
Computing Taxes	Understanding taxes and calculating tax breakdowns is one of the toughest jobs out there. Thanks to payroll processing experts, companies can now do it easily without defaulting on their taxes.
Clearing Compliance	When all the data is retrieved, salaries are disbursed, and taxes are cleared, your automated system will look into compliance errors or setbacks and work on them to keep your system up-to-date with the latest rules and regulations.

As you can see, a payroll software process performs end-to-end services, covering the entire platform of employee and payroll management under one big umbrella. Sounds too good to be true? Don’t worry, we are here to tell you about some limitations that you may encounter if you sign up with the wrong outsourcing crowd!

Benefits And Limitations Of Using Payroll Processing Software

Advantages	Disadvantages
Your payroll processing will be time-efficient & automated	Automated processes can be challenging at first without proper usability training in place
Your business can enjoy enhanced employee satisfaction	You may have to shell out some expenses on software training and usage
With an automated outsourced payroll process, you can expect overall reduced payroll costs	If you don’t sign up with the right company, you may risk data theft or privacy issues
You can always expect your process to be at the top of compliance modifications	Your employees may not have a lot of time to adjust to the new compliance modifications

Just like two sides of a coin, it is important to understand that change can be difficult to incorporate. However, in the long run, turning to automation will be beneficial for your business. Here are what business forecasts predict about HR Payroll processing.

The Future Of HR Payroll

In today’s day and age, businesses hardly have the time to manually rectify errors, collate data, and handle multi-level operations. That’s why the world is turning towards automation where a simple process can resolve all these complex issues in one go! Additionally, a seamless process can also benefit your business in terms of productivity.

For instance, most employees today live a pay cheque to pay cheque kind of lifestyle. Delays or errors in payment processing may reduce their working morale. On the other hand, a company that’s on top of its salary disbursement schedule will always fetch happy, satisfied, and productive employees. In a nutshell, the future of HR Payroll lies in payroll process outsourcing, automated payroll software, and professional companies that excel at both of these jobs.

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5 Strategies Payroll Outsourcing Organizations Are Implementing in 2022

The entire gamut of payroll outsourcing has undergone quite an upgradation, especially since the world plunged into digital dependence after the latest effects of the pandemic. This meant, to ensure steady compliance of the payroll process, payroll outsourcing organizations modified their strategies and enhanced their workflow patterns to ensure they can accommodate sudden setbacks without hampering the steady workflow.

If you’re currently struggling with your payroll process or looking to upgrade your old payroll management system, our organization for payroll outsourcing Bangkok can help you with 5 strategies that we have been implementing to make your payroll process smoother.

Ditch The Paper Payroll Process

When it comes to payroll processing, the top 2022 strategy involves going paperless. This appeals to the cost cutting and resource saving aspect that most companies today strive to achieve. But that’s not all, while paper documented payroll processes seem outdated and difficult to maintain, feeding your data to a secured cloud storage can actually help payroll processors access old records, data, and more efficiently and effectively.

Go Steady with Software Solutions

Why stick to old school manual payroll processing when you can slash resources, manpower, time, effort, and energy with a state-of-the-art payroll software solution. While most companies working with an in-house payroll department usually lack the fund and tech expertise required in setting up such an advanced software system, payroll outsourcing companies like ours dedicated to flawless payroll management can easily accommodate a technical approach on your behalf.

Try Seamless Integration

If you agree with our previous plan about shifting to a software based solution for payroll, you need to keep one thing in mind! You don’t want a new software or upgrades to an existing software process to hamper your current existing systems. This is why it is always essential to update your tech backbone in such a manner that any changes or upgrades to your payroll software system will be seamlessly integrated into the system without you suffering a system failure or setback.

Be Compliant Ready, Always

Are you aware of the new laws and regulations set aside for payroll management? Are they coinciding with the new finance laws? Will they hamper the administrative regulations in any manner? Why dabble in these questions when you can simply hire a group of experts who’s veteran in laws, modifications, updates, and more? Our Thailand payroll service includes dedicating a department to compliance so that you don’t have to burden yourself with changes and upgrades to your payroll system.

Streamline Your Pay Model

A big or a developing company may often come with perks like bi-monthly pay/ weekly pay/ pay per project, and more. While this pay model may appeal to the employees, it becomes a task for the payroll department. Managing multiple pay levels on varying dates often leads to delay in payment, loss of pay, errors in the numbers, and much more. We suggest, streamlining and aligning your pay model in a way where all the employees get same day pay without delay or errors.

Do you like these new strategies we have been incorporating? Want to discuss payroll process upgrades with our experts? We are here to help!

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3 Common Payroll Mistakes and How to Avoid Them

Payroll is undoubtedly, an integral part and parcel of any organization. From reputation management to compliance, from employee satisfaction to record maintenance- accurate payroll processing can be quite rewarding. However, payroll is anything but easy; something that more and more growing companies are realizing throughout their expanse. This is probably why most companies are putting their faith on payroll outsourcing service; a smart and agile way to get the payroll processing done without investing in-house time, effort, and resources.

However, for the ones who are not yet at par with the idea of outsourcing, let us acquaint you with some of the common mistakes companies are making and how they can be solved.

Setbacks in Record Keeping

Not maintaining a clean and clear record of your payroll can be catastrophic to your business. This is not just beneficial from the compliance point of the business. Proper record keeping can also benefit your business and employees too. At the same time, record keeping to the tee can also eliminate a lot of unforeseen issues triggered by market changes or legislation modifications. A simple way to deal with flawless record keeping is to switch from manual reports and files to a software based storage system.

Failing To Have an Iron-clad Backup

On an usual day, let’s say, your company relies a lot on the payroll management team and possibly your computer storage systems for data backup. Now imagine, the computer crashing or your payroll management team undergoing hires or terminations. Can you really afford to lose out on crucial data just because of trivial factors like this? Your valuable data needs a safe and secure system backed by state-of-the-art technology to make sure no setbacks hamper the data storage. Once again, we recommend a veteran software system or engaging in payroll outsourcing to Thailand where you can get some of the best payroll outsourcing organizations.

Trouble With Compliance Control

Sure your payroll processing team is aware of the rules and regulation changes; but how efficiently are we implementing the changes in the system? Did the sudden modification in law hamper the steady payroll process in your organization? Instead of engaging in late night overtimes and manual labor, why not opt for an intelligent working module where payroll experts backed by high-end software solutions automatically updates your process without causing any integration problems?

Now, we know incorporating a world class payroll software solution isn’t always easy- both fiscally and in terms of introducing a new concept to your payroll team! That’s why most companies rely on payroll outsourcing service Thailand. These outsourcing companies employ the best in industry payroll experts and have access to exclusive payroll processing technologies to make your job not just easier but efficient too.

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