Payroll is one of the most important enterprise systems. It is used to manage all the payroll activities of the employees. It is a process that includes calculating employee wages, salaries, and pay-outs, based on various taxations and deductions.

Payroll management is a complex process comprising defining the payroll policies, gathering data and information from multiple sources, payroll calculations, payroll accounting, payroll compliance, reconciliation, and the actual pay-out.

Ensuring effective and accurate payroll management is critical for companies with multiple employees. It provides companies with a comprehensive method to manage their financial activities. It helps them in the timely payment to their employees. It also helps in maintaining other financial activities such as social security, income tax, and unemployment tax.

Payroll Compliance – Benefits

Apart from the legal obligations, there are several reasons why companies must ensure payroll compliance

• It ensures that the employees and contractors are fairly treated

• The employees get appropriately compensated for their work based on the Minimum Wages Act

• Companies avoid penalties, fines, and legal troubles

6 Signs That Indicate You Need a Payroll Compliance Expert

Here are the signs to look for in your payroll management. If you notice one or more of these, you need to seek help from compliance experts –

1. If you are facing challenges in ensuring statutory compliance or encountering issues because of the constant changes in the payroll regulations. The laws could differ based on the size or type of the company, the state of operation, and other such factors.
2. If you are growing fast, adding more people to the organization, and are facing difficulty in the timely calculation and disbursement of the salaries of employees. Such delays can cause employee dissatisfaction.
3. If your HR teams are spending an inordinate amount of time ensuring the accurate calculations of payroll for employees and contractors by considering their attendance, benefits, and taxes. This diverts the HR team’s attention from other value-adding activities such as employee engagement and relationship management.
4. If you observe frequent mistakes and miscalculations in payroll (leading to employee disengagement and legal penalties).
5. If you are facing challenges in managing the payroll of your global workforce – the compliance rules and regulations vary in each country and there are different deadlines to follow.
6. If you are missing important deadlines regarding tax remittances, tax filing, and other such obligations.

The Role of Payroll Compliance Experts

Payroll is a complicated endeavor. Payroll compliance experts can help companies ensure that they comply with all the required regulations –

• They have the most updated understanding of a country’s local regulations and compliance policies. They are also usually well-versed with international laws and regulations. With their guidance, you don’t need to worry about the changes in regulations, deadlines, or other such factors.

• The experts ensure that they take into consideration the benefits, compensation, tax, and allowances of the employees and calculate the payrolls accordingly. With them on board, you don’t need to set up a separate team to do that.

• By taking care of every minute detail and paying attention to detail, they save you from penalties because of errors in payroll calculations.

• The payroll experts also handle the filing of the taxes and manage the quarterly reporting for you.

Payroll is a tedious, time-consuming, and sometimes, confusing task. There are several chances of errors and non-compliance. Payroll compliance experts can –

• Keep accurate records of the employees and contractors

• Manage employee expectations by providing timely and accurate answers to their queries regarding payroll calculations

• Stay up to date on the latest regulatory changes, industry trends, and innovations

• Understand the international legislation and ensure compliance with those

• Submit payroll information on time to avoid penalties

In conclusion

Payment management is one of the most important aspects of Human Resource Management processes. Hiring payroll compliance experts can help you maintain the reputation of the company and responsibly allocate your financial resources. Connect with us for your payroll compliance needs. We are focused and talented professionals specializing in people and compliance management.