HRMS Payroll: Solutions to Age Old Problems
The check is incorrect. The taxes are not right. There are additional, unexplained deductions. Employees want their payroll experience to be flawless but it isn’t always. Payroll dissatisfaction among employees is sometimes a make-it or break-it problem. HRMS payroll solutions cannot paint over these cracks, but given time and investment, they may begin to repair the damage done. After all, an employee needs to feel comfortable with their company’s internal processes and getting payroll right is a pretty important part of that step.
Payroll issues happen even to the best companies and often they are out of the control of management.
Payroll issues happen even to the best companies and often they are out of the control of management. This doesn’t mean that steps shouldn’t be put into place to eliminate the worst of the problems. If implemented successfully, HRMS payroll functionality can improve procedures and reduce potential issues throughout the payroll process.
It is not uncommon for HR departments to want to shift payroll to be the responsibility of finance, but it is important that Human Resources stay on top of it. It is equally as important for employees to have access to HR when it comes to payroll issues as the finance or accounting department does not have the training to answer questions about benefits, tax deductions or other related issues. Not only should the paychecks be correct for each employee but the HR department needs to properly report the information to the government.
Many of you will have experienced these common problems with payroll, the perils and pitfalls of working with employees income include;
- Achieving accurate social security information.
- Healthcare and medicare
- Misidentification of W2 employee or 1099 contractor.
- Overtime compliance.
- Exempt or non-exempt identification
- Child support and other garnishments
All of these issues arise from a lack of good organization on the part of HR and HRMS payroll functions which can assist in ensuring the process is smooth. Since so many of these issues are state by state, such as tax liability and overtime, it is vital to find an HRMS payroll solution that can assist you with local-specific compliance. These payroll processes will also be greatly enhanced by a solid reporting and payroll analytics system.