Month end always came as a trying time for Edna, payroll was truly a headache and a stress experience all in one. As HR, Edna had to endure dissatisfied employees knocking at her door every month end, either challenging her deductions to their salaries and complaining that their salary record was incorrect.
Apart from this, the company Edna was working for had grown in the past year from 22 employees to 41. With the new addition it became difficult to scale and manage payroll manually because it was now more complex and prone to errors.
Lastly a few weeks ago Edna became a bit concerned when she saw an employee going through salary files. She had to dismiss him. The experience made Edna regarding data and security of that information, which she felt was extremely sensitive.
Edna then went to a HR seminar in which she met Melissa who happened to be an HR consultant from M&J group. Melissa told Edna about the advantages of using payroll systems and how it could make her job much easier. Edna then tried using the system and she enjoyed the many advantages it came with. Some of them were:
The Payroll slips provided transparency and clarity regarding an employee’s earnings, deductions, and other financial details. They outlined the components of the salary, such as base pay, overtime, bonuses, allowances, and deductions for taxes, benefits, and other withholdings. This transparency helped employees understand how their pay is calculated and promotes trust and Edna’s relationship improved.
Compliance and Recordkeeping :
Payroll slips served as evidence of payment and compliance with employment and tax regulations. They documented the payment of wages and included important information needed for tax reporting, such as income tax withheld and social security contributions. Payroll slips also facilitate accurate recordkeeping for both employers and employees, ensuring compliance with legal requirements and simplifying auditing and reporting processes.