Why payroll process is important in business

1. Why payroll process is important inbusiness Link -http://disfrutaloscorrs.com/business/payroll-process-important-business/ Payroll processing might seem like one of the least interesting topics there is when compare to the other departments in the organisation. One of the reasons why it still remains a vastly ignored process. Since it is not a core function, it often gets overlooked when companies focus on improvement, efficiency, and riskmanagement. However payroll plays an integral role in the organisations. Itis not only responsible for employee' salary compensation, but also is also necessary for protecting the company’s reputation by ensuring compliance with various legislations. Normally many think of payroll as merely a processing function. They do not realise that payroll has a huge effect on companies. It affects the organisation in its entirety, from its reputation to the satisfaction levels in the workplace. Remuneration: Payroll is not restricted to simply paying employee’s salary on time. It includes everything from salary to bonuses and benefits as well astakes care of taxation. Employees are typically rewarded with a salary increments or bonuses based on their annual performance reviews. Itis www.paysquare.com

2. responsible for creating a positive effect on the organisation and boost employee performance levels. Increase employeemorale On time and accurate payroll has a significant impact on the morale of the employees. It ensures that they have stable finances. However late or inaccurate payroll causes employees to question the financial stability of the organisation. There could a lot of grievances and eventually the engagement levels can reduce to alarming levels. Thus to maintain a happy and satisfied work environment the importance of a reliable and accurate payroll system in the organisation cannot beoverstated. Proper utilisation ofresources: Payroll process takes up a lot of time and manual efforts when done in-house. Besides this process needs to be performed regularly every month which means additional resources need to be employed to ensure the accuracy and precision of payroll calculations. It is best managed with the help of a reliable payrollsystem. These systems ensure more comprehensive data management and provides customised reports that eventually lead to better decision making.Since they are usually updated with latest rules and regulations, companies do not have to worry about an overhaul on their current payroll system just to keep up with recent legislative changes. Automation of the payroll processallows companies to save costs and time in the long run. It also frees up valuable resources for the organisation to focus on other businessareas. Maintain organisationalreputation: Not meeting the state’s rules and regulations can have a huge impact on the organisation’s reputation in the market. Being able to meet all these obligations on time and upholding of legislative laws is essential for the organisation's reputation as a stable employer. It helps to attract and retain the top talent available to theorganisation. Conclusion: Employees are the best ambassadors that a company can have. Potential candidates can get a good sense of the company's culture, branding and financial stability simply by looking at whether the company’s current employees are satisfied with the payroll processes. Online portals like Glassdoor for example help such candidates.Thus it is of utmost importance that companies ensure they maintain accuracy and timeliness of payrollprocess. www.paysquare.com