The current generation is more cautious than ever about their compensation. Any payroll discrepancies can lead to serious employee dissatisfaction. An incompatible payroll system not only causes errors but can also create friction in workforce management. For both employers and employees, the right software to handle payroll is crucial for saving time and money. However, many organisations fear that switching to a new payroll system will be a nightmare. This blog will walk you through everything an employer needs to know before changing their existing payroll calculation software.
What is payroll migration?
Payroll data migration involves transferring payroll information from existing software to a new system. This lengthy process must be planned before implementation, and the new system should be reliable enough to store sensitive data. From removing unwanted information to migrating data and going live, organisations must meticulously plan every step.
Switching payroll software is usually viewed as a challenging task. Implementing a new system takes time, but it is a necessary step for those relying on outdated systems with frequent problems. Changing to a different yet efficient system is better than sticking with one that does not serve your requirements.
Difficulties of Switching to New Payroll Calculation Software
Payroll Errors
Frequent errors in tax filing, employee time tracking, data duplication, and miscalculated overtime compensation are clear signs that it is time for an upgrade. However, if a proper payroll system is in place, these common issues can be ignored.
Multiple Pay Frequencies
Workers may be paid bi-weekly in a few industries, while a few come under a monthly pay schedule. Whether it is a small or big organisation, the business requirements will be changing constantly. At times, there will be a demand for workers who must work two weeks per month, and their payout will be bi-weekly. When other staff are paid monthly, some will have different pay dates.
This might be difficult for an outdated system to evaluate. Traditional payroll calculation software lets organisations follow a similar pattern. The aim of payroll automation is to reduce the burden, but adding more tasks to the HR because of incompatible systems will be a hassle.
Changing needs of the companies
As the company grows, it requires a scalable system. Reasons like hiring more employees, opening branches in new work locations, including complex structures, and more necessitate the companies to purchase the best payroll software that has all the essential features.
Not integrated with other HR tools
Besides payroll, an HR department performs several tasks including performance appraisal, training and feedback, attendance monitoring and more. If an organisation has separate systems for all these tasks, HR professionals will be entering the data manually across multiple systems. A unified platform with all essential tools to manage workforce is need of the hour in every company. When the data is centralised, payroll and other HR tasks can be implemented effortlessly.
Compliance issues
Employees may struggle to comply with local/state laws when it comes to payslip generation. They need a payroll system that is tax-compliant. It will be helpful for employers to file taxes on time, and tax account setup for new hires can be done easily without indulging in piles of paperwork. Once the software is implemented in an organisation to take care of the payroll, management doesn’t have to worry about tax filing or keeping track of tax rates.
System friendliness
If your existing software pushes HR to handle simple tasks like changing settings or retrieving payslips for employees, it’s time for an upgrade. From managers to employees, a user-friendly platform empowers everyone to perform payroll tasks like checking payslips, viewing salary reports, deductions and more.
Better customer support
Not all the systems are 100% reliable. Issues may arise when using the system but it is all about resolving them as early as possible. If there is a payroll error in the system, the customer support team should respond immediately. At the end of the day, the intervention of human assistance is inevitable in solving the issue.
Wrapping Up
Switching payroll systems may seem challenging, but the benefits far outweigh the temporary inconvenience. By investing in the right payroll software, you can ensure accuracy, efficiency, and compliance for your organisation. When searching for new payroll calculation software, consider one that offers robust features, seamless integration, and excellent customer support. With careful planning and execution, payroll migration can be a smooth and rewarding process.
