Imagine the horror scenario when wages are paid completely incorrectly or not at all at the end of the month. Because we want to avoid exactly that and make sure you can enjoy Halloween and future pay runs, we'll show you the four biggest challenges and how you can successfully overcome them.
1. Are you up to date with legal regulations?
One of the biggest challenges in Payroll is the regular change in legal regulations. Tax, social security and labour laws vary considerably depending on the canton, Area and Industry. As a payroll expert, you need to keep up with these changes, otherwise you could face additional fees or fines.
How do you stay up to date with legal regulations?
Firstly, through continuous training. For example, we organise the end-of-year event every year in November, where we also present the changes and innovations in social insurance. Secondly, through regular technical adjustments to the system. Your IT department or your Payroll Software partner is the best place to find out which legal changes have been implemented in the system and how you can implement them. As a company, you are responsible for introducing and training internal users in the changed software/hardware solutions. Regular quality assurance is also required to ensure a smooth payroll run.
2. Is your HR master data correct?
Manually entering HR master data is a time-consuming and error-prone process. You often only realise this when errors occur during the payroll run. There are many reasons for incorrect data. We see the following causes among others with our customers: Data entry is carried out by people who are not sensitised and/or insufficiently trained and are not aware of the consequences of incorrect data. Master data has to be entered multiple times on entry; Payroll is not informed of master data changes; there is no single point of truth when it comes to HR master data.
How do you ensure that you have efficient and correct data entry?
In addition to a clean process and good communication between departments, it is advisable to consider modern HR software solutions. These enable data entry and management to be automated and are ideally connected to each other via interfaces. By integrating HR tools such as automated workflows and time recording into the master data system, you can ensure that all of your employees' data is recorded and managed correctly.
3. Is your Payroll system regularly maintained and is it up to date?
Technical difficulties have caused many a payroll manager to lose sleep, especially when outdated payroll systems or inadequate technical infrastructure are in use. These can lead to unwanted errors, which in turn lead to delays in payroll accounting and the resulting discrepancies.
How does your payroll system run smoothly?
Modern and reliable payroll software and hardware that is regularly updated is a basic requirement. If you have a system that is no longer being maintained, your top priority should be a new Payroll system. By investing in powerful technological solutions, you can not only save time, but also a lot of nerves.
4. Is your Payroll data secure?
Data protection and security are of the utmost importance in Payroll, as sensitive personal data of employees is processed here. Cases such as the one at Credit Suisse, which became public at the beginning of 2023 and in which an employee is alleged to have stolen personal data, are a super disaster. Companies must ensure that appropriate security measures are implemented and continuously monitored to guarantee the confidentiality and integrity of data at all times.
How do you secure your Payroll data?
Investing in data protection and security is essential for successful organisations. This includes utilising access restrictions, encryption technologies and regular security audits to protect your Payroll from potential threats. If an external provider processes your payroll, it is your responsibility to ensure that security is a top priority. Are you using Payroll cloud software? Then find out from the provider what measures are taken to defend against hacker attacks.
Conclusion
In addition to the unchangeable framework conditions, there are many ways to make your life in Payroll a nightmare. Invest in training, modern technology, efficient processes and data security. Not only will you successfully overcome the challenges of Payroll, but you will also save time and ultimately costs. With a well-thought-out Payroll strategy, you can prevent nightmares in Payroll. This gives HR time to reach for the stars again and dream of other things.
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