18th August 2021

If you are thinking about recruiting people, you will need a payroll strategy. However, with the additional cost of employees and benefits, you may not be keen on the high cost of outsourcing payroll. Is it possible for me to do my own payroll? Will I be more prone to making mistakes? How long do you think it would take? You have the option of doing everything manually or using software when handling payroll on your own. Regardless of which strategy you use, you must first obtain data.

It is far from guaranteed that keeping important personnel data on paper or in Excel spreadsheets is a good idea. Employees have high expectations of your firm, therefore ensuring the protection of sensitive employee data is vital. The quantity of information that goes into the wrong hands because of manual payroll processing is risky. Businesses may suffer because of this data loss.

Moving to competency-based payroll software that is safe, easy to use, and assures tight compliance can eliminate all of these problems. It also saves a significant amount of time and money compared to manual processing. Simple payroll errors can result in disgruntled employees and additional fines, all of which might have been prevented if the correct tools had been used.

Companies involved with Fintech in Malaysia, for example, have been pushing for the negation of these errors through digital payment systems. The rise of digital payments in Malaysia allows people and organisations to improve their accessibility to financial services whether they want to complete a cashless transaction or send money overseas.

EVOLET is one such payment solution that also doubles as an e-wallet. It is beneficial for both employers and employees, with integrated services as large as overseas transfers and cross-border payments, to as simple as recharging mobile reloads and paying bills.

1.Employee Classification

The categorisation of individuals who will be paid by the company must be extremely clear, as payment varies depending on this. Given that most companies have different types of working positions within their structure , some are full-time employees, while others work part-time. Some people may work on a casual basis, while others may work on a contract basis.

Some people are employed just for their skills and on a project basis, while others are hired for a set amount of time. Some employees are paid in a flat payment, while others are compensated based on the number of hours they work for the organisation. Employees will be paid differently based on this information. When dealing with such diverse payrolls, there may be payroll errors. To avoid this, each employee's payment policy must be examined first, and only then should the payment process begin.

2.Maintain Accurate Records

Paper timesheets are a problem waiting to happen. Manually entering time data is the epitome of "overdoing it", especially when you are trying to locate employees to check their hours and re-enter the data into your system.

Employ an electronic timesheet and timesheet software that allows managers to simply track employee attendance, track how much time they spend on shifts, collect automatic timesheets for approval and export timesheets to payroll software with a single click.

3.Purchase Payroll Software

Payroll software is a good compromise for doing your payroll. Payroll software that is accessible online is reasonably priced. Furthermore, the software performs all computations for you, so you will not have to worry about making any mistakes while still maintaining control over payroll operations. You get to be in command and you know when payroll will be completed. Depending on the solution you choose, you may have to go through a learning curve to get the hang of the software.

However, you can get assistance from customer service. Payroll software only takes a few minutes to set up. The time investment is less than what would be required for manual calculations. If you pay for a tax filing service, the software will handle all of your tax requirements. You will save even more time by not having to worry about withholding, filing and remitting taxes.

4.Personal Files Of Employees

There may be personal files of employees with updates and deletions. In certain exceptional cases, compensation and deductions may be available and these cases must be kept track of.

5.Overtime Payments

There are several options for managing overtime compensation when employees work overtime. Some payments are handled by reducing the number of directions, while others are estimated as extra payments. This policy differs from one company to the next. Overtime pay is also paid at a different rate. Some organisations keep track of how many hours their employees worked extra each month. Understanding the company's policies and then taking them into account when computing the payroll is critical to reducing payroll problems in these areas.

6.Taxation And Other Deductions

Calculations must be done, and payroll must be processed per the taxation policy of the country in which the company is located and the taxes that have been deducted in advance. Taxes would comprise both basic taxes that apply to everyone and additional duties that may be specific to the geographic regions where the payment is processed. All of this should be considered to avoid payroll errors and boost work efficiency in the organisation.

If you are ready to move your company away from error-prone and monotonous manual payroll systems, then EVOLET can help with many of the major components to an organisation's financial processes. From digital payments via e-wallet and salary management to accessibility features for the unbanked and migrant workers, EVOLET optimises your payroll and payment needs so employers and employees can enjoy the benefits of digital disruption. You can even recharge mobile reload and pay bills online with EVOLET. Make the transition from manual to digital as soon as possible.

EVOLET is a digital wallet app for migrant workers.

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