Advantages of Automated Payroll Processing

Running payroll can be a very complex procedure to most HR professionals. A huge portion of an average HR professional’s time is spent on payroll processing alone, especially when it is still done manually. In contrast, many capabilities are built into an automated payroll system, allowing the user to work more efficiently on routine payroll tasks.


Compliance with manpower regulations

One might feel comfortable processing payroll manually, especially when the headcount is small and manageable. While formulas can be used in the spreadsheet to make payroll calculations, it is still a manual process as one needs to keep track of regulatory changes and update the formulas accordingly. This presents a risk of non-compliance with the latest regulations that affect payroll processing.

To ensure compliance with local employment laws, it is important to engage a reputable automated payroll system provider with a proven track record. Such a provider would have the resources to promptly update the system to take into account the latest regulatory changes to ensure full compliance at all times. It would also have tested its system thoroughly before its launch and ensure that it adheres to industry standards. In addition, support is always available when the HR professional needs help with the system.


Protection of sensitive data

One might think that employees’ personal data is safe as long as the document has been encrypted with a password. However, this requires constant supervision to monitor changes made by authorised personnel. Another problem with a manual payroll processing system is the inconvenience of ensuring that employees who leave the organisation hand over all corporate data entrusted to them. A minor error might also significantly affect the accuracy of the entire document, making it very difficult to rectify the situation.

In contrast, an automated payroll system would have more robust information security features to prevent leakage of sensitive data outside the organisation. It would also allow the organisation to easily track what data changes were made by which individuals with an audit log and ensure that only authorised personnel may access the information. In addition, any data errors could be easily identified and rectified.

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