Payroll has become a source of stress and anxiety for many firms. This is largely due to the increase in litigation involving work time which is unpaid, with research showing that at least 90 percent of lawsuits filed within the United States involve hourly wages. While some companies choose to outsource payroll to third party firms, others are looking to managed payroll as a solution. Here are some of the most common questions involving it.
What Advantages Do HR Departments Gain?
Payroll management utilizes HCM technology which is cloud based. This means payroll data can be completely automated and streamlined globally. HR departments benefit by receiving compliance requirements in real time, greater transparency, and extensive analytics and reports. It also substantially reduces the requirements for internal resources while providing enhanced flexibility.
How Flexible is Managed Payroll?
Flexibility is one of the most important characteristics of a payroll management system. However, many vendors that claim to offer flexible or scalable payroll solutions do not provide intermediary platforms for their existing clients, let alone new ones. This is why it is important to use payroll solutions which are global and completely integrated, as they provide essential features such as managed services or management in-house.
How Should Managed Payroll Vendors Be Selected?
The most ideal vendors are those who provide solutions that give you a nice balance between automation and control. Their products should also be flexible in regards to BPO. Find out from the vendor if dedicated resources will be necessary to use it or is the transition managed? Inquire about who will be responsible for compliance and can the costs be estimated or are they dependent on cloud hosting? It is also crucial to find out how the payroll data will be secured as well as what measures will be enacted to reduce and resolve downtime.
How Compliant Is The Payroll Management System?
This is one of the most important questions that should be answered before you purchase a payroll management solution. Although cloud based tools provide significant security benefits, the compliance risk may vary from one vendor to another. Many vendors rely on third party sources for implementation, which must then use your rules for compliance. The best solutions are those which completely automate compliance through updates in real time from a cloud base with an international network of compliance experts.
How Much Technical Overhaul Will Be Needed For Installation?
One of the most common concerns among enterprises that plan to implement payroll management is the technical overhaul. This is quite understandable as there is significant variation in terms of cloud based technologies. While many vendors will require their clients to buy a complete suite of HCM solutions, others can be merely one component of a larger HCM suite which is unified, that may be integrated into an existing record system in a seamless manner.
This gives organizations increased flexibility while allowing for a transition phase which is much easier. These tools have made payroll management easier than ever, making cloud based payment management tools highly sought after by HR departments.