Payroll is a hefty task for many modern businesses, accounting for an estimated five hours each pay period or 21 days each year. Payroll integration helps streamline this time-consuming process by connecting various software systems and applications to handle important aspects of payroll administration, such as accounting, HR management, time tracking, and expense reporting.
See how payroll integration can improve operations and eliminate administrative burdens on your HR team.
Payroll Integration Benefits for Employers
The main goal of payroll integration is to automate data exchanges between payroll software applications and other HR software to streamline payroll processing and reduce inaccuracies caused by manual data entry. Some of the top advantages of payroll integration for modern employers include:
Operational Efficiency & Cost Savings
Integrating payroll and HR software can simplify tedious administrative tasks and help your business run more smoothly. These innovative systems can often manage complex pay period calculations for gross and net pay, deductions and garnishments, retirement plan contributions, and local, state, and federal tax withholdings.
Eliminating these manual calculations can significantly reduce the time and money spent on payroll processing.
Improved Compliance & Security
Using an integrated HR and payroll solution can help improve security and maintain compliance by securely storing employees’ tax details and personal information in a centralized platform.
It also reduces the risk of duplicate information, which would otherwise require HR staff to manually review and amend incorrect data. Accurate tax information is sent to the proper authorities through automated means, lowering a business’s risk of potential fines and penalties.
Streamlined payroll integration even plays a significant role in business security. Integrating payroll systems reduces the likelihood of data breaches by eliminating potential security gaps that cybercriminals could target and exploit.
Payroll Integration Benefits for Employees
Integrating payroll and HR solutions can offer employees countless advantages, too. While it may seem that administrative tasks, such as payroll, solely benefit HR staff through saved time and automation, employees can also enjoy a range of conveniences, including the following:
Timely and Accurate Payments
Streamlined payroll integration can contribute to improved employee satisfaction in several ways. Having automated systems in place that automatically submit accurate and timely payments can help boost employee morale and nurture a positive work environment.
Enhanced Access to Benefits
Setting up payroll integration helps provide staff members with the best possible benefits experience. These solutions often come equipped with employee self-service, allowing workers to easily access and update their personal information from any internet-enabled device without going through HR.
Making self-service options accessible, such as online platforms that allow employees to access pay stubs and tax forms, gives workers greater control over their financial information and can reduce the administrative load on HR staff. These online platforms also promote greater transparency, encouraging trust between employees and employers.
Easier access to data also means that employees can quickly log into the system and access data on their available sick time, vacation time, and other benefits.
Transparency and Communication
Communication across businesses often suffers when multiple systems are in place that do not correlate with one another, meaning data can differ from one application to the next. Storing all data in a single location helps increase transparency and allows for more accurate reporting.
When an HR and payroll system is integrated correctly, just a few clicks is all it takes to generate accurate, reliable reports. Data is harmonized across all systems, providing employees and employers with the same information.
Implementing Streamlined Payroll Integration
Payroll integration is a complex process that involves many important steps, from setting up the software to checking compliance with relevant tax and labor laws. This process must be done carefully and quickly to prevent impacting the business’s operational efficiency.
Integration Process
The integration process begins by selecting an appropriate system for the business. Several factors, such as the company’s size, budget, and specific requirements, must be considered when making a decision.
Once these decisions have been made, software setup can begin. Setup and configuration involve gathering the necessary payroll information, such as tax data, employee information, and payroll schedules. Existing payroll data must then be migrated to the new system. This may involve setting up parameters for benefits and deductions.
Once the new payroll solution has been successfully integrated, perform a compliance check to confirm that the system complies with tax and labor laws to prevent potential problems in the future.
Learn How New City Consulting Can Help With Your Payroll Integration
If you believe that integrating payroll with HR may be right for your business, New City Insurance can help. We offer consulting services for businesses of all sizes, including HR and payroll integration, that help streamline operations and achieve greater efficiency. Reach out to our experienced team to find a scalable, integrated solution for your business.