One of the most critical aspects of handling businesses to achieve efficiency is the payroll structure and processes. Timely management of payroll disbursal ensures smooth back-end functioning. The enormity of the payroll process encompasses many aspects of a company’s obligations than just estimating if the financial dues are correct. The payroll department has to ensure compliance with tax obligations and employment legislation. The company must ensure they are working within the most current laws.
Various payroll management processes lead to inefficiency in the entire structure. In a survey conducted by Deloitte, business managers were asked what their biggest payroll service delivery and processing challenge was. Their responses are shown below:
|Accuracy and timing of Inputs
|Multiple, inconsistent, and/or decentralized systems
|Vendor management/dissatisfaction with outsource provider
According to another survey reported by “Expanding Payments Choice Playbook,” 45% of independent contractors say they would like to be paid daily, or on-demand and another 45% would like to be paid at least weekly. This creates the tedious task of managing timely payrolls. Crediting vendors’ and contractors’ accounts on time strengthen relations and improves the company’s reputation.