What do you need to do to ensure that your payroll is accurate and efficient today, in our fast-paced, go-get-it business environment. The answer is simple and complicated at the same time - Human Resource Information Systems (HRIS).
Today, I think HRIS is essential for streamlining payroll processes. However, to do so, it needs to be properly integrated, and your HR and payroll processes need to be in perfect alignment. But what exactly is an HRIS payroll system, and how it would look in your business?
In this guide, I will explore everything you need to know about HRIS payroll systems, from their key features to how they can boost your payroll management and take your business to the next level.
Boring definition: HRIS stands for Human Resource Information System, a software solution that combines HR functions such as employee data management, recruitment, benefits administration, and payroll processing into one unified system.
But in business applications, the HRIS payroll system ensures that your HR and Finance/Payroll teams spend less time on tasks that repeat from pay cycle to pay cycle and that the employee payment data is pure and accurate.
Which means focusing on payroll, ensuring that employee compensation is calculated accurately, deductions are applied correctly, and payments are made on time.
Managing payroll manually will (not just can; it absolutely will) lead to errors, inefficiencies, and non-compliance with local laws. An HRIS payroll system automates these processes, reducing the risk of mistakes and freeing up days' worth of valuable time for HRs, CFOs, and People teams (or whatever you call the department responsible for it). This software ensures that all payroll tasks, from calculating wages to generating pay stubs, are handled efficiently.
HRIS payroll systems integrate payroll with other HR functions, providing a comprehensive view of employee data. Here’s how it works:
When choosing an HRIS payroll system, it’s essential to know what they can and can't do. Here is a quick, no-brainer, absolutely must-have list:
At its core, an HRIS payroll system should efficiently process payroll, including calculating gross pay, deductions, and net pay. Check if your system can handle different pay cycles, such as weekly, bi-weekly, or monthly. If you want to learn how you change the payroll frequency and don't break your processes, you can check our article.
Compliance and taxes are actually one of those things that you don't need right away. Yes, compliance with local labor laws and tax regulations is important. But outsourcing any legal compliance to HRIS payroll system is scary. if the system can do calculations and remitting payroll taxes and generate tax forms like W-2s and 1099s - GOOD! If it can't - taht's not the end of the world.
PLUS! If you operate gloablly across multiple jurisdictions - good luck finding a software taht can handle compliance and not be overpriced.
Compliance is a luxury, usually reserved for enterprise-level companies.
Employee self-service portal is a must! Don't ever cosnider a payroll solution taht doesn't have one. Allowing employees to view their pay stubs, update their personal information, and manage their benefits online is cool. This feature enhances employee satisfaction and reduces the workload for HR teams.
This feature alone will eliminate 50% of requests and tasks during the pay cycle. So much time is wasted answering the same question:" Why is my salary like this? "I thought..."
Enough—let them have access to their pay stubs. This way, they will only write a request when there is an actual mistake.
Do you want accurate timesheets that are processed automatically by payroll? Then you will need to integrate the HRIS payroll system with other HR functions, such as time and attendance tracking, benefits administration, and performance management.
Now some HRIS Payroll software (Like Juggl) can have its own time and attendance and benefits features - which is a big plus. If it doesn't - invest time in integration. Lucky for you, there is Zapier.
Any HRIS payroll system must have robust reporting capabilities. The system should provide detailed payroll reports, including labor costs, tax liabilities, and compliance status. Advanced analytics can help businesses identify trends and make data-driven decisions. Your data is a resource and youneed to make the most of it.
The right HRIS payroll system can be challenging, especially with many available options. Here are some tips to help you choose the best system for your business:
Before selecting an HRIS payroll system, assess your business needs. Consider the size of your organization, the complexity of your payroll processes, and your budget.
Just like we discused, do you really need local compliance? Do you operate or planning to expand gloablly? Do you already use T&A or other systems?
Answers to those questions will inform your decision.
Compare the features of different HRIS payroll systems. Ensure the system offers essential features like automated payroll processing, compliance management, and robust reporting capabilities.
Listen, your team is going to have to use it. Everyone in your organization will be forced to use it. Do you want them to suffer? The user experience is crucial when selecting an HRIS payroll system. Look for a system that is intuitive and easy to use for HR staff and employees.
Ensure that your HRIS payroll system can integrate with your existing HR and financial systems. Seamless integration is critical to avoiding data silos and ensuring that all your HR processes are connected.
Before making a final decision, request a demo or free trial of the HRIS payroll system. This will give you hands-on experience with the software and help you determine if it meets your needs.
HRIS payroll systems are an invaluable tool for businesses of all sizes. By automating payroll processes, ensuring compliance, and providing valuable insights through reporting, these systems can save time, reduce errors, and enhance overall payroll management. When choosing an HRIS payroll system, consider your business needs, evaluate critical features, and ensure that the system integrates seamlessly with your existing HR functions. With the right HRIS payroll system in place, you can streamline payroll management and focus on what truly matters—growing your business.
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