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Once or twice a month, a company’s finance and accounting department is haunted by the horrors of computing the employees’ payroll; there’s also the hassle brought upon the disbursement process. That’s why many companies now shift from processing the payroll manually into integrating their data into a payroll system.

And if you want to have a payroll system for your company’s use, you can. Nowadays, payroll system vendors are everywhere! If you open Google and try searching “payroll system in the Philippines” for example, there’s going to be a bunch of them to choose from. But actually immersing yourself and your employees into the system is not a job you could get done in just one snap. You must be very careful when choosing the right payroll for you.

If you are currently canvassing for a payroll system, keep these 4 things in mind:

Switching into an online payroll system might feel like a big jump; because it probably is. With all your previous and existing data, integrating everything into a whole new ecosystem might be an issue in mind. So this is one factor you should consider with the system you are eyeing, if it is capable of integrating all your data into the new process. And remember, it is possible to integrate everything without leaving even the smallest detail out. If it cannot do as much as absorbing data, then handling more complex task can be a big problem.

Data integration will also mean that you are close to going paperless. Meaning, all your files will now be stored in the system. So it must be reliable enough to store all the data for future reference and usage. Data security and safety must be a top priority; the payroll system must be able to keep everything in without compromising its standard process. If the system cannot handle such job, then this is an automatic red flag, a no go, an obvious stop-and-turn-back sign.

Each country has its own laws regarding payroll. And it varies, it is not a universal thing. Each country’s payroll laws have its own peculiarity. Some may be simple; others may be complex. But no matter how the laws are, it should be strictly followed. And the system must also be “updates-ready” because you’ll never know when the higher ups decide to change the law.

Take the Philippines’ case for example. In January 01, 2018, the new tax reform law known as Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law took effect. This have a direct effect on all the companies’ payroll process nationwide. The previous regulations have completely shifted and users of existing payroll systems have worried about it. If you are getting a payroll system in the future, put it into consideration that the system itself is capable of updating its database upon implementation of changes like the one mentioned. It will cause you so much hassle if you’d have to wait long before your existing system gets updated. Without the update, you’re better off processing your payroll manually to avoid possible conflicts. Imagine you’re the HR manager, all your employees are aware of the new regulations but your system processed the payroll this cutoff following the old one. Would you be able to handle all inquiries and complaints from the employees? That’s the kind of situation we’d all want to avoid. This contradicts the main reason why you got a system, a hassle-free processing.

Now this is the main necessity of why companies go for payroll systems. If you have about a hundred employees, it’d take you so long checking everyone’s records and computing their monthly or semi-monthly salaries. The payroll system does the dirty job for you and gets it done fast. But what you should look into is (1) how does the system records employee’s time in and out, and (2) is it capable of calculating deductions.

All payroll systems have a standard function of time recording, the one question you should be asking is how does it do it? There are a lot of methods of recording the daily time record of your employees. If it does not use an external machine, the payroll systems usually have an online bundy clock instead. Other methods include integration to an RFID reader, a biometrics machine, and a face recognition machine. The payroll system’s complexity of integration to such methods must be kept in mind.

It should also be able to calculate government-mandated deductions. Each payroll processing must include these deductions. This should be calculated along with the timekeeping records to avoid mismatch of information.

What better way to look for a perfect fit for your company than to mold it yourself! The best payroll system offers a feature of customization. Before actually using it, you should be able to customize the system according to your business roles and peculiarity. Not all vendors’ standard system are complex enough to meet your requirements.

The best Payroll software must be able to adjust to your needs, not the other way around!

And this could also be related to #1. The system must be able to integrate all your data and process new ones while still following the same method of data gathering.

#2 comes in, too. Consider if the system is capable of integrating timekeeping machines into its database. If it has an online bundy clock, see if it can abide to the restrictions you’d want to implement.

When canvassing, be sure to discuss all your company’s business roles and peculiarities to make sure that the system provider would be able to customize their standard system to meet your needs and requirements.

A payroll system is a handy tool to have at the office. It gets the the dirty job done so that you wouldn’t have to. But purchasing one is not something you should just jump in to. Process everything and put all things into consideration before immersing yourself into it. Remember, if it causes even the slightest hassle then might not have considered all the factors correctly.

Vitruv Technologies’ Aria HR Suite can provide you a payroll system that considers all these things to put your mind at ease. Let us help you get started, book a demo at vitruvtech.com/book-demo.

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