Why your Business Needs a Payroll Health Check

Why your Business Needs a Payroll Health Check

Why your Business Needs a Payroll Health Check

Why your Business Needs a Payroll Health Check

Just like human beings, businesses require regular check-ups on their processes and systems to ensure that any potential risks are promptly dealt with before any issues escalate. One such system prone to going unchecked is payroll. A regular payroll health check helps to identify and prevent the possible risks that can be resolved before they become a serious problem.

Payroll is the backbone to most companies: essential yet unnoticed, often overshadowed by revenue-generating operational and business units. Generally, low efficiency of payroll can divert precious resources in a business. This can result in the Human Resources (“HR”) department appearing as a cost centre when in reality, an efficient HR team can value add much more to a company’s growth.

We’ll explore how payroll inefficiency can cost businesses and why a health check of current systems can assist in more efficient business planning.

Effects of Payroll Inefficiency

As a business, payroll processes are often determined and then untouched for years, the mindset of “if it isn’t broke, don’t fix it” can be prevalent. In addition to this, many companies use legacy payroll systems that don’t offer the wealth of benefits technology has enabled in this space. However, as companies continue to grow and mature, what works for a small business is not necessarily suitable for larger organisations, or for those who are expanding overseas.

Some pain points of payroll that might surface as a company grows are:

  • Resource Strain – Time and talent are wasted on tedious administrative tasks instead of business generating activities such as talent management, employee engagement and strategic planning. As the business grows, the resulting increase in administrative tasks can lead to a greater burden on the HR team.
  • Compliance Risks Leading to Potential Penalties – Constantly evolving and vast differences in rules between countries can result in the difficulty of complying with legal requirements. For example; in multi-state countries like China, there are distinct sets of laws governing wage, employee tax and insurance that are specific to the respective province. HR teams need to have an in-depth awareness of the various regulation differences per state and stay up to date with the changes. This can cause an increase in workload and open your company up to risk for non-compliance.
  • Inconsistency of Reporting – Different countries might use diverse templates which could lead to unnecessary frustrations when analysing data across various offices.

A prompt & regular payroll health check could uncover if your current practices are costing your business valuable time and resources.

Benefits of a Payroll Health check

A payroll health check is an assessment that should ideally be conducted by independent payroll experts to identify key risks and potential problems in a company’s payroll practices.

A professionally executed payroll health check can help to:

  • Garner an independent assessment on how your payroll can be better managed
  • Analyse what your business’s payroll is costing your company
  • Identify a high-level payroll process flow
  • Ascertain the payroll issues exposing your business to risk
  • Tailor payroll solutions to your specific needs
  • Address your concerns about payroll

Like any other health check-ups, delaying them will make the recovery process longer and more painful than necessary. Catch any risks early and engage a payroll health check right now!

BoardRoom is currently running a 100% FREE health check to help you maximise the efficiency of your payroll, sign up here now for this exclusive offer before it expires!

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Two Direct Methods To Improve HR Efficiency Today

Two methods to improve HR Efficiency

Two Direct Methods To Improve HR Efficiency Today

TWO DIRECT METHODS TO IMPROVE HR EFFICIENCY TODAY.

Since being coined in 1893 by John R. Commons, Human Resource (HR) has evolved to become a vital part of any thriving business. In a bid to ensure that the company succeeds in its growth and development, the HR department is responsible for its workforce’s productivity and contribution to the company. This means on top of traditional roles like recruitment, training, management of employee benefit programmes, processing payroll, and maintaining overall morale; the HR Department has become a core driver in shaping business success.

Optimising your HR operations is not an easy task. The continually evolving business landscape is pushing the boundaries of HR capabilities; HR as a whole finds itself in a position where they need to spend more time enhancing performance and less time on traditional administrative work such as employee record keeping or payroll processing. There are many strategies HR Departments can undertake to achieve excellence. Perhaps the most impactful would be the contributions brought about by payroll outsourcing or the adoption of an all in one Human Resource Management Software (HRMS).

01 Consider outsourcing to a payroll service provider

Of the many benefits that come with outsourcing payroll, specialised expertise would be the most notable. By outsourcing your payroll, it provides HR with the opportunity to save on time and cost as well as navigate delicate cultural, language, and regulation issues. By engaging a third-party payroll vendor, the HR department can significantly reduce risk and labour.

Payroll outsourcing reduces cost and saves time.

Processing payroll in-house is time-consuming. It is delicate work that requires a high level of attention to detail. The stress on workload only rises as the company grows and headcount increases. It is important to remember that payroll is only a subfunction of the HR department and one which is an administrative back-end function. Unlike other strategic functions of HR that can drive business performance such as management of employee benefits, recruitment, and training. Consider the benefits to the business if your HR teams were wholly focussed on these instead of scrutinising considerable amounts of data to avoid miscalculations and errors. It is important to note that the time your department saves by not burdening itself with this duty is reflected in cost savings. So, by outsourcing payroll processing, which includes anything from calculating payroll taxes and statutory filings to handling payroll enquiries and disbursement, you benefit your organisation financially too!

“Human resource isn’t a thing we do. It’s the thing that runs our business.” - Steve Wynn

The ongoing costs of the payroll software, additional headcount required for processing wages, managing paperwork, and tax liabilities can add-up to a considerable sum. So, in addition to saving time-cost, by choosing to outsource your payroll functions to a payroll vendor, you could be generating concrete savings to your bottom line.

All things considered, the actual extent to which payroll outsourcing will assist in reducing your costs depends on your current level of efficiency in administering payroll in-house and of course, the complexity of your payroll.

Payroll service providers can offer you peace-of-mind when it comes to compliance and data security.

Staying up-to-date with complicated compliance regulations is an ever-present and real risk that HR teams face when running payroll operations in-house. Even with the most experienced employees, lapses may occur when your department gets busy. Payroll vendors minimise this risk through a dedicated team of experts that operate under stringent protocols and multi-level cross-checking – a process that is often skipped when managing in-house to save on time.

Another aspect for worry other than compliance would be security. Considered the security of your HR payroll software and data is In an age when data security and personal data protection are at the forefront of conversations it is critical you have the appropriate measures in place to ensure accountability with these matters. You need to consider where your payroll software and data are stored and is this a secure location with ISO certification? Do you have the latest security updates installed and processes in place? In the event of an unfortunate lapse in security or hardware malfunction, the many hours required to recover your data along with the implication of experiencing an extremely sensitive data breach will deal a severe blow to the HR department and your company.

By contrast, when you outsource your payroll to a top payroll outsourcing company, they will offer highly secure payroll solutions. They do this by storing your data on highly secure cloud-based servers that utilise state-of-the-art encryptions that prevent any unauthorised access. Data-loss worries would also be a thing of the past with backups across multiple server locations. This essentially allows the HR department to eliminate the effort and time cost that comes with constant security monitoring and data protection—in short, peace-of-mind with minimal effort.

Boardroom payroll HRMS Architecture

Still need a reason to outsource your company payroll? Here’s 6 more!
➤ Read 6 Key Reasons to Outsource Your Company Payroll

02 Consider a well-integrated and interconnected Human Resource Management System (HRMS)

There are many reasons why your HR department would want to consider investing in a fully integrated HRMS solution. All-in-one HRMS solutions typically provide a better user experience for all staff (including HR) and swifter access to a broader array of data. According to research conducted by Software Path, it is not surprising that the most popular reason for HR to integrate an HRMS is to increase overall productivity.

Well-integrated HRMS saves time and eliminates potential human errors.

Automating your HR processes helps you save time. Having to manage every HR function efficiently is hard work. Payroll management and processing in particular can be needlessly resource-draining. However, with a well-integrated HRMS, a company with about 100 staff can complete its payroll processing in a day or less. And while some companies may already be using an HRMS to process payroll, it is important to note that the lack of a well-integrated system that automates calculation and combination of data between various HRMS modules could potentially bring about greater potential for errors leading to areas of inefficiencies.

An ideal HRMS would encompass several key modules and automate a swift data-sync process between them. Examples of modules can be: Leaves, Claims, Time and Attendance, Personnel, and Payroll. Remember to review your HR needs and ensure that your HRMS of choice offers a all the required modules. It is important to note that data from different modules are interdependent.

E.g. payroll processing is dependent on accurate claims data to ensure precise disbursement amount.

By utilising a well-integrated solution, you can ensure that that there are no lapses or variances in the records that may lead to inaccurate accounting.

Payroll outsourcing - Leave and attendance
“One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.” – Elbert Hubbard
Payroll outsourcing - Overtime and Claims calculation

By choosing your HRMS wisely, you guarantee peace of mind for your HR department and free-up resources to focus on other functions such as improving processes and securing a strong talent pipeline. In the words of Elbert Hubbard, let your extraordinary people do extraordinary work and leave the machine to do the ordinary work.

HRMS simplifies employee services

One of the critical functions of any HR department is employee servicing. The task of supporting employees with basic services such as clarification and generation of essential documents, amongst other things, can be extremely tedious and time-consuming. This becomes exceptionally prevalent for organisations with a massive number of overheads. Needless to say, this causes a drop in the department’s productivity. Top HRMS applications can offer remote access to employees. Some of which even provide mobile solutions which increase accessibility for the modern employee who is always on-the-go. Having such a function provides quick access to general information and documents as well as facilitates an efficient enquiry process without the need to be connected to a physical intranet.

These are just a couple of ways in which you can significantly increase the efficiency of your HR department and begin moving in the direction of HR excellence. However, outsourcing a vital HR function or adopting an HRMS does not come without its challenges. The department may show signs of resistance for fear of their jobs. Decision-makers must provide clear communications on how these new efforts serve to benefit its people. Furthermore, while there is a chance that jobs and positions could be replaced, new positions will always be created to facilitate outsourcing or integration.

Have we provided you with the answers you’re looking for? If we haven’t, we’d very much like to do so. Contact our resident expert on increasing HR efficiency here!

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Outsourcing Payroll in China – Understanding your Payroll Duties

Outsourcing Payroll in China

Outsourcing Payroll in China – Understanding your Payroll Duties

Employment Considerations

One of the biggest risks employers face with executing payroll in China is not fully complying with the country’s labour laws. Employees are generally required to have proof of residence in the city in which they apply for employment, and employers must file the appropriate social insurance paperwork.

Employees may be hired on a permanent or temporary basis; a temporary contract can be for a fixed period of time or until the occurrence of a certain event. Workers from abroad can be employed only with special permission from the local authorities and after obtaining an employment certificate for the employee.

Wages and Compensation Considerations

Minimum wages are set by local government agencies across China, and the country’s labour bureaus set standard minimum wages for certain types of jobs. China has an eight-hour work day with an average working week no more than 44 hours long and (generally) two days off per week. Salaries and payroll-run in China are generally paid monthly.

An employee may terminate employment with 30 days’ written notice. Employers must provide 30-day advance notice to an employee to part ways with mutual consent and must pay severance unless the employee failed to satisfy the conditions of his or her employment contract and/or violated any laws or company policies.

Taxes, Social Society & Withholdings

Required tax deductions vary from region to region (and even city to city) across China, but they usually total around 40 percent of an employee’s salary. Since all employees pay income tax, China mandates that employers withhold around 15 percent of employees’ wages for individual income taxes and pay, paying them to China’s tax bureau before the 15th of each month. Employers are also required to withhold and pay a shares tax, bonus tax, or severance tax when applicable.

Employers and employees are required to contribute to China’s mandatory social insurance schemes – pension insurance, medical insurance, industrial injury insurance, unemployment insurance, and maternity insurance – as well as to its Housing Fund which allows the employees to save money towards purchasing their own home.

The amount of social insurance and Housing Fund contributions are adjusted each year for every city or region, with the amount determined using the average salary in each city. Respective government officials often implement the changes at different times, placing an important administrative burden on employers to stay abreast of all required payroll compliance guidelines.

The required withholdings must also be paid to the Bureau of Labour Insurance, National Health Insurance Council, and the Employee Pension Board before the 15th of the following month.

Leave, Vacations & Holidays

As in most other Asian countries, workers in China receive about 10 paid holidays per year. These generally include the first three days of the traditional Chinese lunar calendar, three days for International Labour Day on May 1-3, and three days for National Day from October 1-3. They also receive a paid holiday for January First on the Western calendar and China’s government occasionally establishes special holidays on short notice.

Employees are entitled to between 5 and 15 days of paid annual leave at a sliding scale based on their length of service to the employer. Employees can also apply for sick leave, marriage leave, and funeral leave, when applicable.

Women are generally entitled to 98 days of maternity leave, paid by the employer, though certain provincial regulations extend the amount of leave available (in some instances, by as many as three months). Fathers are entitled to 7-20 days of paternity leave, with some extensions permissible.

China Payroll Outsourcing

Most companies operating in China have engaged a regional payroll services provider to take care of China’s complex payroll considerations and tax requirements. To ensure all employer’s liabilities are complied with according to the local regulations, consider outsourcing your payroll operations in China to a trusted managed services provider like BoardRoom.

BoardRoom has extensive experience operating in China with a local team and a new cloud-based HRMS solution, Ignite, that delivers a superior user interface and an intuitive mobile application.

Looking For An Established Payroll Partner In China?

At Boardroom, we are experts in helping companies, from corporations to fast-growing SMEs, with their payroll, allowing them to focus on what matters – growth and profitability.

From local payroll services handling to managing substantial payroll obligations for bigger companies spread across Asia-Pacific, we help companies comply with local statutory regulations while ensuring their most valuable asset, the employees, are paid on time.

Contact us today and empower your organisation with greater freedom through our payroll solutions.

Or you can also learn more about our payroll solutions here.

This article is for informational purposes only and not intended to convey or constitute legal or any other advice. It is not a substitute for advice from a qualified professional.

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How To Choose The Right Payroll Provider For Your Business

How To Choose The Right Payroll Provider For Your Business

When it comes to ensuring that every employee gets paid on time, many companies choose to outsource this payroll responsibility to professional firms.

It is rather easy to understand why – handling your payroll effectively will either require you to spend a substantial amount of time figuring out the proper procedures to pay your employees (time that could be used to focus and grow your core business) or committing to hiring a payroll specialist that could be rather expensive together with a backup resource for contingency.

By choosing to outsource your payroll to a credible firm, you will not only have service assurance by having agreed Service Levels thereby reducing errors, saving time and money. In addition to this you will have access to a knowledgeable and dedicated team but also gain access to a myriad of additional benefits that include:

  • Agreed Service Levels and reporting
  • Technology refresh and ability to add new functions
  • An assurance of compliance with government regulations and reporting standards
  • Information security and confidentiality of your sensitive payroll data
  • A team of professionals with expertise extending to accountancy, tax advisory and beyond.

In this article, we will go through 5 questions to ask yourself before deciding on the right payroll service provider for your business.

1. How Big Is My Organisation?

Am I a growing SME under ten employees? Or maybe I have a bigger regional business with branches spread across Asia-Pacific.

While every company requires mandatory payroll management services that include the computation of gross to net salary, statutory deductions as well as the preparation of year-end forms, a regional company will require these across multiple countries as well as additional services to stay organised and compliant.

A suitable payroll firm for bigger companies will have the ability to provide centralised payroll coordination through their network of local offices, allowing your organisation to stay compliant under the local jurisdiction you are in as well as in your local Country.

2. How Up To Date Is My Payroll Provider’s Technology or Platform?

Technology is ever changing and you will need a firm that keeps up with the trends.

From the issuing of confidential payslips through electronic means to the easy access of payslips and data, a good payroll provider will provide a flexible and central platform for the administration of payroll.

Many payroll services today will allow employees to access a secure site to view their individual payroll history as well as providing an avenue for the submissions of claims and leave applications.

Most employers are becoming more and more aware of providing the same customer experience to their employees regardless of which Country they are based in or managed from. Having access to a solution that has the ability to provide this across multiple Countries is a key consideration.

Ensuring your payroll provider is tech savvy is vital not only for the convenience of your employees but also if you decide to scale your company to the next level without payroll becoming an issue.

3. How Secure Will My Employees Information And Payroll Data Be?

Outsourcing to a payroll provider can be scary but it doesn’t have to be so. Conducting adequate research on your payroll service is a good way to gauge the level of security they will provide.

Look for a company that has a strong IT team coupled with secure hardware and redundant backups together with a disaster recovery system in place, should the unforeseen happen.

4. How Is The Level of Customer Service?

No matter how smooth sailing your business might seem, unforeseen issues could arise at any time.

What you would need is a partner that offers superior support during such moments of crisis.

This can come in the form of an account manager or a single-point-of-contact executive that will grow with your company as the years go by, intimately understanding your organisation and how it functions.

This will allow a smooth resolution of any potential issues that might spring up without the need for you to re-educate a new representative every time you decide to reach out.

Ask your payroll service provider if there will be a dedicated manager tasked to service your account. If they say yes, you will be in good hands.

Your service provider should also be able to offer you guaranteed levels of service through a Service Level Agreement with Key Performance Indicators that are reportable on a monthly basis.

5. Do They Provide Other Complementary Services?

When it comes to running a business, payroll is just a facet of many services that can be outsourced.

While there are merits to choosing a specialist company that only handles payroll, a more sensible choice would be selecting a payroll provider that offers a spectrum of services that can handle your non-core business functions. These can include corporate secretarial services, bookkeeping services as well as tax advisory.

Selecting a single provider that can handle a whole suite of related services will not only help you save time but also synergise the various aspects of your business that can lead to additional benefits such as tax savings.

Looking For An Established Payroll Partner In Singapore & Beyond?

At Boardroom, we are experts in helping companies, from corporations to fast-growing SMEs, with their payroll needs, allowing them to focus on what matters – growth and profitability.

From local payroll services handling to managing substantial payroll obligations for bigger companies spread across the Asia-Pacific region, we help companies take care of their people while increasing productivity.

Contact us today and empower your organisation with greater freedom through our payroll solutions.

Or you can also learn more about our payroll solutions here.

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6 Key Reasons To Outsource Your Company Payroll

6 Key Reasons To Outsource Your Company Payroll

When it comes to running your business, time and resources are best dedicated to core functions that help generate profit and meet the expectations of your customers. The last thing you want to worry about is your payroll!

Administrative tasks such as payroll are non-core activities that are time-consuming and can get more complicated as your organisation grows. Due to this, approximately 47% of companies choose to outsource their payroll and it is no wonder why!

Especially if you are operating across multiple Countries in the Asia Pacific region, it is key to understand the region’s legislative complexity while recognising people today are internationally mobile and expect the same level of customer experience regardless of which Country you work from or which Countries you manage people from.

But what exactly are the benefits of outsourcing your payroll?

In this article, we will take you through 6 reasons why you should consider a payroll outsourcing company.

1. Your Company Saves Valuable Time

Whether your firm has five employees or fifty, processing payroll will demand a substantial amount of time and keen attention to detail.

When you outsource your payroll processing, you not only save money that might have been spent hiring a payroll administrator, you will be saving time by hiring an expert.

Professional payroll firms also have the experience of handling a myriad of situations from their years helping a variety of companies with their payroll. By outsourcing your payroll needs, you will save valuable time that might have been used to train up your in-house hire to get up to speed.

2. Professional Service With Better Reporting

Depending on your business needs, a professional payroll service can provide basic payroll administration or customise a more complex solution that involves regional and online pay advices to employees across the entire organisation spread over different countries.

In addition, a good payroll company will also have its own platform that will allow for better reporting and generating more comprehensive reports to cater to any analysis required.

The key “mantra” with payroll is accuracy and timeliness. In some cases, this is the only contact your employees have with the Corporate Organisation and so their customer experience is paramount to their view of you as an employer. Your employees expect and deserve nothing less.

3. Information Security & Confidentiality

The data held for payroll is sensitive and the investments required to protect that data are a must.

The security of payroll data is also an essential factor to be considered. With the introduction of EU’s GDPR laws, an increasing number of organisations are assessing the impact of them becoming the new global standard, subsequently two questions must be asked:

How safe and secure are your company servers?

How do I protect my employee’s data?

Using a credible Payroll Outsourcing Company is key to you and your employee’s peace of mind that their data is not at risk and is dealt with by a professionally qualified organisation.

4. Be Compliant With Government Regulations & Standards

When handling payroll, there are many statutory regulations and standards that have to be met.

From the accurate computation of gross to net salary and statutory deductions, there is also a need for the preparation of the year-end reporting.

The intricacies of these reporting standards will have to be timely and mistake-free to avoid potential time-consuming audits and penalties – definitely situations that every business wants to avoid!

A professional Payroll Outsourcing Company will ensure you always remain a compliant employer.

5. Enjoy Cost Savings

While your first reaction might be to either task your finance team with payroll or hire a payroll specialist, both these options can actually cost more money for your company in the long run.

Routine tasks such as calculating payroll, the distribution of paychecks (both physically or electronically) as well as the preparation of payroll taxes to the government can take a toll on an in-house team that isn’t trained to do it accurately and swiftly.

Hiring a specialist might be a solution, but you would be better off spending your revenue on hiring more profit-generating roles for your business.

6. Gain Access To Experts Beyond Just Payroll

When you outsource to a professional payroll processing company, you will also gain access to a team of experts that can help answer your immediate questions and handle any situations that might arise with pin-point solutions.

Payroll processing companies such as Boardroom have a wealth of complementary services such as corporate secretarial and accounting services that are just a phone call or email away.

At Boardroom we also offer consulting and advisory services to solve any challenge your company might face when it comes to running the non-core business functions – these include employee plan services to expatriation services.

Looking For A Trusted Payroll Partner?

At Boardroom, we are experts in helping companies, from corporations to fast-growing SMEs, with their payroll, allowing them to focus on what matters – growth and profitability.

From local payroll services handling to managing substantial payroll obligations for bigger companies spread across Asia-Pacific, we help companies comply with local statutory regulations while ensuring their most valuable asset, the employees, are paid on time.

Contact us today and empower your organisation with greater freedom through our payroll solutions.

Or you can also learn more about our payroll solutions here.

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