Undoubtedly, one of the most valuable assets of a business is the employees, or in other words, its human resources. Human ResourceManagement teams deal with many responsibilities to keep these valuable assets satisfied, with one of their most nitty-gritty services being the payroll. Having the perfect payroll system allows you to satisfy your employees as you can pay them what is due and pay them on time. However, there are different kinds of payroll systems, and each is effective depending on the needs and situation of a business.
Internally Managed Payroll System
This system is probably best for you when you’ve only recently started a business, having to manage only a few employees. Managing your own payroll system allows having full control of it. This gives flexibility in making last-minute changes in the payroll. One problem for this type of system would be the knowledge of the business on managing payrolls. If you are overseeing the management of your company’s payroll, make sure to be aware of the various laws and taxes applicable, and the many changes and factors that may influence them. Even just one violation can cost the company a lot of money and become a major setback.
Outsourced Payroll System
There are 2 subcategories under this. The first involves outsourcing an individual payroll professional, while the second involves outsourcing a payroll service agency.
Small businesses that have grown to a fairly sized business are likely to use the first kind. The payroll is managed by payroll professionals who are third parties outside the company like CPP’s and bookkeepers. The business would worry less about making mistakes as this process is in the hands of experts. This allows a business owner to spare more time towards other responsibilities within the business. However, for most of the time, outsourced individual professionals only take care of managing the payroll system, as businesses are still responsible for completing the payroll process such as paying salaries and making bank deposits.
The second type of an outsourced payroll system leans towards hiring a payroll service agency to manage the payroll system for you.This system is basically a larger scale of the previous type of system. A payroll service agency is a group of payroll professionals that is commonly outsourced by businesses looking for assurance that their payroll process is always completed on time. Though it is the most expensive type, this allows business owners to not worry about the payroll as it is in the hands of a group of payroll professionals. Not only is the payroll professionally managed, but the agency also completes the payroll process from start to finish.
Software Managed Payroll System
Whether it is online or installed in a device, these software help businesses manage payroll systems more efficiently and accurately. The growing popularity of this type can be attributed to its accessibility as it can be used by any size of business and is a cheaper option compared to outsourcing. With this kind of payroll system on your side, the only work you would need to do in managing the payroll system is to input the necessary data, and the software will do the more time-consuming tasks of managing the payroll such as the calculations and organization of it.
Some businesses even opt to go beyond having a software dedicated to managing payroll systems, and choose to have a human resource information system (HRIS) instead, which is a system that helps in managing all the kinds of human resource services of a business, including the management of the payroll.
Knowing the right payroll system for your business can play a significant role in achieving satisfaction for your employees. Having the right system, whether it be internally managed, outsourced, or managed in a trustworthy HRIS like Everything@Work, would surely become an asset as well towards growing your business.