A quality payroll processing system is a necessity for businesses of all sizes. However, switching to such a system for the first time can be challenging. Here are three important steps you’ll want to take to ensure your payroll processing program is smoothly and correctly implemented.
Perform An Evaluation
An initial evaluation will be necessary before the actual payroll processing program is installed. At this point you will want to ask as many questions as possible, such as how will employee hours be tracked? What compensation system is most ideal? How will overtime work? What about taxes for income or payroll?
Every workforce has strengths and weaknesses and recognizing them will allow you to identify the people who are best able to handle the transition. If you are unable to find a suitable candidate among your workers, it may be necessary to hire a third party that is experienced with payroll processing installation. Payroll requires exceptional detail and high accuracy, so whoever is responsible for it must be dedicated to the task. You must also choose the right time to implement the payroll system, ideally when the business is in a state of expansion.
Determine The Compatibility
Once you’ve performed the evaluation, the next step is to determine the compatibility of available payroll processing systems. A common mistake made by firms is selecting a software package without taking the time to determine its compatibility with the business. These programs come with many functions, some of which may be desirable and others which aren’t. You must carefully select payroll processing systems with functions that are best suited to your industry in general and your business in particular.
You can determine which functions you’ll need by asking questions such as how often will you be notified of tax updates? How will current company data be integrated into the new system? What security mechanisms does it have? Which payment options are available? Look for payroll processing systems that provide added value such as shortcuts which allow for deductions which are automatic or earning codes. Companies that have advanced payment systems will want to go for vendors that allow codes to be customized.
Install The Payroll Processing System
Once you know what your business needs and have identified a compatible program, the next step is to implement it. You will first need to get your operations prepared for the transition. You will need to verify that you have the necessary hardware and you may have to hire a third party for the installation. After the payroll processing system has been installed you will need to perform routine checks to determine how well the system is performing and what advantages it is providing.
The best payroll processing systems are simple to use, easy to understand and highly effective. However, there are steps involved in evaluation and implementation that you need to get them right. By following these steps, you can ensure that the transition will be completed as smoothly and effectively as possible, allowing your payroll department to maximize its proficiency.