Despite the range of HR tools, resources, and software available in the market, HR and payroll management is still afflicted with common issues that need to be addressed quickly and effectively. Payroll management professionals routinely encounter these problems and can tackle them with varying success.

A recent study reveals that 50% of businesses think they can improve their payroll functions even more. Common errors in payroll processing include under and overpayments, wrong tax withholding, and lack of consistency in payroll management.

An integrated HRIS system can facilitate secure storage of staff, payroll, and HR data, but errors can happen if your processes and storage are not organized efficiently. This can set back your payroll staff by many days.

In this article, we detail some common issues with HR and payroll management, and the steps you can take to tackle them effectively.

1. Organizational Problems

HR and Payroll Management Challenges

With a competent HR and payroll software solution, you can keep all your vital employee and payroll information and records accurately and efficiently.

The platform allows you to store your documents and files in a single secure location and create consistent filing procedures.

This allows you to minimize gradually and even eliminate paper files and forms. An integrated HRIS with payroll services and functions can enable this.

It empowers you to bid goodbye to time-consuming and error-prone manual processes, and make your payroll processing faster and more accurate.

2. Drawbacks of Manual Processing

A lot of small businesses still carry out manual payroll management in-house. This process typically needs plenty of paperwork and can burden your HR executives. It increases the risk of data entry mistakes which can lead to the wrong application of rules and payment concerns.

The solution is to invest in an integrated system that can be more cost-efficient than recruiting more employees to manage an expanding manual process.

Your business can also consider outsourcing its payroll management to a third-party provider. This will free up the time of your staff so they can focus on vital work while you can ensure your payroll processing is handled professionally by a competent vendor.

3. Tracking Staff Absence

Manually monitoring your workforce’s sick days and vacations can be a tedious and mistake-prone task. Simple electronic and paper timesheets and cards can be easily misused. Apart from payroll, a business must track personnel availability so that it can plan work schedules effectively and optimize productivity.

An HRIS platform with an automated time-off tracking feature is the solution as it can help to eliminate time card issues and facilitate more precise payroll management.

4. Incompatible Software

If you use multiple payroll programs, you may experience compatibility problems. For instance, the tool utilized for your staff records or benefits could be different from the product used for services and pay. Besides, you could be leveraging another solution for your workforce performance.

You can avoid these compatibility concerns by investing in a single integrated HRIS system with included payroll, benefits, and workers’ compensation modules.

Such a program can help to streamline your entire process, minimize the time needed for data entry, and empower your HR unit to function more cost-effectively and efficiently.

5. Compliance Concerns | Standard HR and Payroll Management Challenges

Federal and state legislation related to business management continually changes in the U.S. Therefore, employers need to continuously review their practices and policies and ensure they are compliant with required regulations.

Payroll professionals and companies need to manage their compliance practices in a timely and accurate manner. This is crucial for enterprises to avoid government penalties and investigations and expensive complaints.

As mentioned earlier, you can outsource your payroll management to a third-party provider who can take care of the task of handling your firm’s changing and ongoing compliance demands.

6. Conclusion | Standard HR and Payroll Management Challenges

Another benefit of outsourcing payroll is that the vendor will manage your payroll-related HR purposes and tax calculation and filing. This will clear up your HR professionals to concentrate on priority work, like improving employee engagement and productivity.

Evaluate your HR and payroll management needs and challenges, and decide whether to manage your payroll processing in-house or outsource it to a reliable third-party provider.