Payday is literally the most important day in the life of a worker. As the saying goes, money checkmates insult. Money is the language of the century. On payday, employees get rewarded for their physics, emotional and mental contribution to the growth of the business/company. Obviously, plans would have been made with the expected income. Payment of wages and salaries affords workers the opportunity to execute these plans.
The last thing workers want on payday is an excuse. They aren’t keen on listening to why payments couldn’t be made or salaries couldn’t be processed. The only thing they want is a paycheck, a credit alert, or cash. The onus is on employers to put appropriate measures and mechanisms in place for smooth processing of bonuses, wages, and salaries. As far as preparing payroll is concerned, there are different options available to employers. By employers, we mean the human resources department because they are the ones saddled with the responsibility of staff reward, staff manning and compensation.
Payroll can be processed using one of two methods. However, the easiest and most popular method is the use of specially designed software. Payroll processing software is a computer program written in machine-coded languages to help you handle your payroll needs. Usually, all deductions such as tax, levy, and fines are automatically deducted leaving you with an exact reflection of the net income of each worker. Final payments can either be done via direct deposit into the bank account of each worker or by issuing a paycheck. The amount earned by each employee depends on a number of factors such as the number of hours worked, the prevailing wage rate in the province/state, timesheet figures, extra hours worked (overtime), applicable tax rate, and the amount agreed per hour on the offer letter. All these parameters are put into consideration when developing the software or preparing payroll manually.
The manual method of is prone to so many human errors. Errors can occur as a result of miscalculation or oversight. In the manual method, a salary schedule is prepared (mostly in excel format) and forwarded to the bank for onward processing of payments. This method is very costly especially when you consider business and personal income taxes. We all know that companies are fined and sanctioned heavily for underpaying tax or when they do not remit the amount they ought to. With manual computation, the chances of an error or mistake are higher. As a matter of fact, it could also lead to overpaying or underpaying some members of staff.
If you own a business or you have people working under you, there is no need for any knee-jerk decision as far as paying your workers is concerned. The use of payroll software will take care of your needs. Hence, you’d have little or nothing to worry about. With the use of payroll software, late payment of wages and salaries will become a thing of the past.