1. Managing the payroll needs of a global workforce

For global companies with employees across the world, it’s often challenging to set up a HR system that can ensure compliance with the different tax and labour laws of each nation in which it operates. Also, global companies typically need a system that can keep track of different languages and currencies.

To overcome these complexities, many companies have embraced technology through the adoption of a centralised payroll system. Such systems enable companies to create a global reporting capability through a centralised and intuitive dashboard, and automatically coordinate international payroll requirements. Additionally, a centralised payroll system also helps HR and payroll become more agile and effective by facilitating real time communication.

2. Ensuring accurate and time-efficient payroll processing

The manual work often required when processing payroll, for instance entering salary details, consumes time that HR professionals can better spend on more important HR initiatives. On top of this, it can also lead to human error.

That’s why many companies have adopted modern payroll software to automate payroll processes and streamline compliance, helping their HR team to avoid manual work and boost efficiency. For instance, it can help HR professionals automate the processes of checking payroll data to ensure employees are paid accurately and on time, and that tax payments are calculated correctly. What previously took hours to do is now done in seconds.

3. Lack of payroll talent

There’s a shortage of payroll talent around the world, with a report by Korn Ferry projecting that the talent deficit will amount to 85 million people by 2030.

Offering a competitive salary is essential to attracting and retaining the best payroll talent. But it’s also critical for companies to invest in training programs to develop the skills of their payroll professionals. So too creating opportunities for promotion to help them further their career. By doing this, payroll professionals understand that the company is interested in their development and career progression, and are therefore more inclined to stay.

4. Tax and compliance issues for payroll

The laws and regulations that govern payroll, like those related to The Inland Revenue Board of Malaysia (IRBM), payment schedules and record-keeping requirements, are often complex and ever evolving. If employers fail to notice regulatory changes and adjust their processes accordingly, they may incorrectly calculate employee pay or tax liabilities in their payroll and get slapped with a large fine or penalty.

It’s therefore critical for payroll professionals and their company’s leadership to actively monitor any changes in payroll laws and regulations, so they can take the necessary steps to update their payroll systems when required.

5. Updating outdated payroll systems

Companies need to have an updated payroll system that accurately tracks how much time their employees have worked. If the company is using an outdated or faulty payroll system, this can cause problems such as late employee payments or overtime pay miscalculations. To avoid miscalculating employee overtime pay, companies can utilise modern work time-tracking systems to ensure that overtime hours are accurately reported.

Access EasyPay: The solution for HR challenges

Trusted by over 18,000 businesses across Asia, Access EasyPay can help your businesses and your HR team overcome the complex challenges of payroll.

Access EasyPay provides a configurable and intuitive solution for HR professionals that can help them save time by streamlining payroll processing and compliance. The solution is backed by a dedicated team of payroll experts with intimate knowledge of the local regulatory landscape, and as such, Access EasyPay is always up-to-date with the latest regulatory changes.

The importance of skilled HR personnel remains

Having an effective payroll system, especially one that is automated by software, is vital to a company’s success. However, companies still need skilled HR personnel to ensure that its HR systems are running properly and that the data it produces is optimised. While the importance of good HR software cannot be overstated, it’s critical to note that it should not be seen as a replacement for HR staff, but rather as an asset to help them work more effectively.