Payroll management may seem like a daunting task. Follow these tips to avoid some of the most common payroll processing mistakes!

1. The Ultimate Guide to Efficient Payroll Management | Exela HR Solutions Blog
The Ultimate Guide to Efficient Payroll Management –
Exela HR Solutions
Remuneration is one of the biggest reasons why people come to work. Imagine the stress a
professional must endure if there is an error in their salary computation, or worse – if they don’t
receive a month’s pay after all their hard work. Payroll processing only appears like an effortless
task. But in reality, handling payroll is no joke, and it gets increasingly challenging as the size of
your business increases.
The most significant limitation in managing payroll is complying with relevant and area-specific
labor and tax laws, which are subject to periodic modifications. Non-compliance can lead to heavy
penalties, resulting in your employees' losing faith in the organization. Sure, this also translates to
increased employee turnover costs which are heavy on the wallet. But, goodwill and reputation
thus lost are incomparable. If you were part of the recruiting panel that took the effort to
complete the employee’s hiring cycle, you'd be twitching with disappointment. Payroll processing
is a responsible job. And while you may be great at juggling responsibilities, the slightest error in
managing payroll will result in disdain and dismay on your staff's faces.
But, we have listed some great tips that will help you combat the usual payroll management
problems:
1. Always comply with applicable Laws and Regulations
Tax regulations and labor laws can differ drastically from area to area. And it would be best
if you stay up-to-date with these. Failure to comply with even one of these can have
unforgiving repercussions. Innocent negligence or unfamiliarity can still lead to legal battles
and penalties. Another scenario is when you decide to expand your business or shift shop to
another location. If you migrate operations, technical and legal diversities may be

2. The Ultimate Guide to Efficient Payroll Management | Exela HR Solutions Blog
absolutely contradictory to what you may have been accustomed to earlier. Maybe you're
still headquartered in the same location, but what if an employee migrates to another
branch? Do you follow the payroll laws at the headquarters or the actual location of work?
And what if they're remotely working from another continent altogether? Which laws
become applicable then? Not yielding to appropriate regulations can result in fines and loss
of reputation. Therefore, ensure the payroll processing staff at your organization is well-
acquainted with all applicable laws. They must constantly refresh their knowledge and stay
updated and current to mitigate any legal risks.
2. Conduct appropriate and relevant Payroll Management Training
Many HR experts are already qualified in payroll management. But, payroll is handled (and
mishandled) differently in every organization. While their expertise may be relevant to their
previous organization, having your whole HR department trained together will ensure
they’re all on the same page. This will assist in collaboration within the department and
facilitate a more cohesive team approach. As a result, your payroll system becomes more
effective through better allocation, decreasing the stress on your payroll staff. All this is
favorable as you get a platform to streamline and discuss processes to arrive at a common
conclusion and SOPs, leaving less room for error. Therefore, organizing a payroll
management training class for your HR team can be a fruitful step toward effective payroll
management.
3. Maintain Transparency in the entire Payroll Process cycle
Multiple disputes can occur when your employees are clueless about how payroll really
functions. This can lead to dissatisfaction among staff and even result in employees leaving

3. The Ultimate Guide to Efficient Payroll Management | Exela HR Solutions Blog
your company. Therefore, payroll must be as transparent as possible to gain the trust of
your employees. You can achieve this by incorporating essential details such as your
company's method and workflow of handling payroll, employee category, reporting
accountabilities, availability & realization of paid and unpaid leaves, the appraisal &
promotion process, etc. In addition, ensure you display these policies clearly and concisely,
ensuring all your employees have effortless, on-demand access to these.
4. Maintain an up-to-date Payroll Calendar
A payroll calendar outlines the pay cycle's beginning and ending dates while marking dates
for incentive payouts. It helps support Human Resource teams in organizing and
maintaining payroll service functions by access to verifiable data. Creating payroll calendars
is not challenging as multiple payroll software are available nowadays. You can opt for
entirely automated and hybrid ones or even manually keep a tab of this vital information on
spreadsheets. In addition, you can color-code calendar sections, adding reminders and
notifications against events, targets, and deadlines. A compelling payroll calendar would
emphasize cut-off dates for salary computation, reimbursements, and incentives
throughout the year and, in turn, lessen the chaos and arbitrariness that would have been
present otherwise. Depending on your platform of choice, you may also be able to notify
your employees when they can anticipate their salaries and any past arrears.
Also Read: What Are The Payroll Myths? Busting The Most Common Outsourcing Misconceptions
5. Gather valuable Insights and Feedback
Sure, you have done a great job with payroll management with that new calendar, HR L&D
session, and exhibited policies for transparency. But that's just what you're assuming. Well,
in all possibilities, you may be right. But, planning, strategizing, developing, and executing
top-notch payroll management techniques may still have a leak that needs to be plugged.
The only way to find out is through constant evaluation. Check the statistics and ask your
staff to give you honest feedback. Sometimes, the gap lies in mere comprehension of
policies and procedures. You may have the best of these in place, but if your employees
haven't a clue, of what good is it then? Conducting periodic reviews and surveys can help
you understand if and where these gaps exist. Your staff will thank you for this gesture
because it displays empathy and concern. It proves you, as an employer, understand how
essential and delicate payroll issues are and do all you can to ensure clarity, transparency,
and proper management. Standing by such values helps garner loyalty and dedication from
your employees. Most of your staff will willingly oblige, and participation in such topics is
always 100% because it impacts everyone. This kind of participation can be clubbed with
other team-building activities for a double impact.

4. The Ultimate Guide to Efficient Payroll Management | Exela HR Solutions Blog
6. Consider outsourcing the Payroll Process
Your time is your most valuable resource. If you are experiencing roadblocks or frequent
lapses concerning payroll duties, it’s better to outsource this function. This can get some
load off your shoulders while providing you with the opportunity to concentrate on other
essential core tasks. Outsourcing payroll comes in numerous shapes and sizes. Payroll
service providers allow you to be a part of the process and still be in control of everything
through payroll software, offering varying degrees of control. Payroll service providers are
experts at what they do. They understand state laws and taxation. They’re adept at these
computations and ensure you adhere to the law with sufficient audit trails to back you. If
you’ve been experiencing mishaps or stress in areas concerning payroll, maybe it’s time you
consider outsourcing this task.
7. Automate only certain or all of your Payroll Service Functions
We live in a digital era, and IoT has enabled the automation of most business process
functions. Instead of outsourcing payroll processes, you can just manage your own in-house
software. The idea is to reduce the manual load, increase efficiency, and improve payroll
processing TATs through one automated platform. HR Suites and enterprise solutions are
advanced solutions that are the automated equivalent of outsourcing functions to an
external HR service provider. Automated payroll can be calibrated as per your location,
history, state laws, regulatory bodies, etc. They automate employee attendance and
calculate overtime payments depending on variable slabs and increment levels as defined
by the admin. It is undeniably faster and easier to have all this information pre-calculated
and organized systematically where your team can access these to authorize payments
instantly or as required.
8. Documenting the Payroll Process
Although it may appear as an unnecessary effort and additional cost, you must have all your
information regarding payroll available and accessible for audits or any unforeseen
circumstances. Apart from maintaining crisp records for auditing purposes, this practice
helps track essential information that can be studied and analyzed for better planning. It
allows HR to conduct regular reviews, clarify their positions, reinforce responsibilities, and
plug all areas of concern. Sometimes, a company's leadership undergoes a drastic change,
and resolving issues can become a massive task if proper documentation is not maintained
from the beginning. It's a good idea to have all past payroll records stretching beyond
employee separation and change of management. However, if you're struggling to
backtrack data, at least insist on the last decade's worth of trails, which is the bare
minimum.

5. The Ultimate Guide to Efficient Payroll Management | Exela HR Solutions Blog
Exela HR Solutions is a world leader in delivering end-to-end HR services, from recruitment and
global payroll processing to HRBP services. We’re here for all your payroll needs. Whether you’re a
startup, an MNC, or a conglomerate, we have HR software and solutions for businesses of all types
and sizes. So, get in touch with us today if you need help with payroll or any other HR function.
DISCLAIMER: The information on this site is for general information purposes only and is not
intended to serve as legal advice. Laws governing the subject matter may change quickly, and
Exela cannot guarantee that all the information on this site is current or correct. Should you have
specific legal questions about any of the information on this site, you should consult with a
licensed attorney in your area.
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