30th March 2021

An inefficient payroll process that is inaccurate and unnecessarily complicated can result in consistently unhappy, sometimes angry employees. For the payroll department, grievances and employee allegations are expensive and needless problems. Regularly, payroll managers and HR workers must deal with a large amount of data. There are dozens, if not hundreds of names, numbers, documents, and reports to handle. There are also various laws, legislation, regulations, and deadlines to abide with.

For many organizations, payroll management may be troublesome. Although it should be a quick process, this is not always the case for many smaller companies. The manual method of payroll may suit new-born companies. But the manual methods of documenting, monitoring, and reporting time and attendance can quickly become daunting as the organization expands.

Fintech is essentially the use of technology to enhance the way individuals are provided with financial services at a higher pace and a lower cost than conventional means. This is why Fintech has surpassed services provided by established players in the financial sector, especially in Malaysia.

1. Distributing electronic payslips
Paper payslips are becoming a thing of the past. As corporations are dropping out of favour with the preparation and distribution of paper payslips, businesses are gradually embracing electronic payslips.

Not only do they save paper and money, without you having to raise a finger, but most payroll software can automatically produce and distribute payslips to your employees.

2. Maintain Regular Training and Education
For organisations, ongoing education and training are extremely important and this is particularly true for professionals in HR and payroll. The management of payrolls is nota static career, but a dynamic and changing force. Changes in technology, software, available resources and legislation enable payroll practitioners to continually upskill themselves.

As the industry, technological advances, and the pressures on the human resources departments shift, the position of the HR Manager is continually expanding and changing in many ways. For a good HR professional, on-going education - whether formal or self-administered - is necessary.

3. Keep your payroll policies simple
The more nuanced the, paid leave, committee structure, costs, engagement, mileage and other policies are, the more difficult your payroll process would be. Keep the rules as clear and transparent as you can, wherever possible.

Different payroll policies or complicated policies for different levels of your workers would just make your payroll process overly complex

Try to keep the payroll policies of your business straightforward, easy to understand, and transparent for all employees. Not only will the clarity be appreciated by your workers, but the number of administrative activities that are part of your payroll process will be reduced.

Other digital types of payment are also emerging, such as mobile wallets, to provide workers with options to get paid in cash.

4. Using an easier system
One of the most important and untapped business contact points for their employees is the payroll system, with payroll-related correspondence usually originating from external parties such as banks or other financial services firms and loan providers. A company-branded mobile wallet will consolidate all financial transactions between employees in one location, enabling the employer to retain, control and optimize the employee's experience where it counts.

All in all, mobile wallets will provide workers with a seamless digital interface as a payroll and financial wellbeing tool; a supportive one that answers some of their main issues and traverses both their work and financial lives at home. Migrant workers will appreciate global e-wallets, an easier way to help them send money home.

In improving their workplace experience, workers' digital interaction with employers is important. The blurring of boundaries between employees' work and home lives makes it all the more important for employers to create a seamless digital experience that represents how central the digital experience has become in the way people function over the past decade in their everyday lives.

5. Create a payroll calendar
Getting a payroll calendar will help to ensure that you remain on track throughout payroll processing. A calendar will help you keep up with your pay periods, commission payment cut-off dates, expenditures and mileage claims, and help you monitor the activities that need to be completed each month.

You can keep track of each step of your payroll process with a clear image of what needs to be done, and by when. This will keep the payroll department on the same page and aware of what has been accomplished and what has yet to be completed to process the payroll this month.

6. Stay Informed of State and Federal Tax Requirements
It can not be adequately stressed how important it is for companies to keep up-to-date with the various enforcement rules and regulations of the countries equivalent of the IRS and other government agencies. The potential costs for companies that do not meet deadlines or fail to file such forms altogether can be catastrophic, especially for smaller companies. Payroll tax reporting is a business requirement, but it doesn't have to be an expensive burden like that.

To review and appreciate your state and federal payroll, employee, and tax laws and adjustments, make it a necessary part of your ongoing processes. You and your workers can prevent a large number of costly errors and delays by being completely aware and updated.

EVOLET is a digital wallet app for migrant workers.

Learn more at https://evolet.io/