When a business has more than one employee there is need to manage the intricacies of calculating their salaries and ensuring that everyone is happy. Different payroll systems will offer you various options however there are five things that every payroll must be able to give with regards to value for your organisation. We have compiled here five reasons why one needs to use a payroll for their company below.
1.Frees and Saves Time
The right payroll enables you to have more time to do other things. Imagine spending the whole time trying to calculate your Final Deduction System for 20 employees, sifting through the tax credits, accounting for allowable deductions and other considerations. If you are calculating your payroll manually you will need to know when the 50% tax credits can be considered, or those days that were sold during the month. A good payroll system does the calculation for you. You save on time to do other processes.
2. Compliance
Zimbabwe’s Zimra requires that you calculate PAYE properly whilst maintaining the different statutory requirements. For a good payroll system, compliance is at the heart of the matter. Being able to account for the Standard Development Levy, Aids Levy, NEC and other requirements is important. Compliance is not just about the calculation but also about the presentation when required. The staff member needs to see their net salary with the right calculations.
3. Ready Accessibility of Information and Reporting
When there are queries for a payroll process or the requirement to reproduce a past payslip or past information the right payroll system will enable the organisation to extract the information in seconds and not in days or weeks. The payroll system therefore keeps the information in the database and a good practice of data base back up enables you to retrieve the information from time to time.
4. Security and Privacy
An important aspect on the payslip in Zimbabwe is confidentiality and privacy. A good payroll system enables information to be secure by accessing it through an application which is password protected. This being the case enables the organisation to be more confident that the payroll information is secure and is not all over the place. Added to that an organisation’s information security policy can also further enhance the security of the organisation. Along with a good security policy is the audit trail that is required for each system.
5. Accuracy and Error Reduction
The number of calculations that one has to do for a payroll production are many. Examples of common calculations include the following
- Tax Calculations
- Statutory deductions
- Leave Processing (Leave Pay)
- Overtime Payments
- Tax Credits
- Allowable Deductions
- Benefits and Allowances
- Loans deductions
- Advances calculations
- Recoveries processing
All these calcualtionss are prone to errors however a payroll system helps to reduce the errors with already set formulas and treatment procedures.
If you ever get caught up in asking yourself why you need a payroll system, these 5 reasons can assist you to make a decision. These are a good check list to ensure that you are getting the right payroll system that will cover your needs.
For more information or free trial on Payline Payroll you can get in touch with our office today.