Considering a payroll system is a great step forward in improving the accuracy and timeliness of payroll and accounting. It helps to know what to look for in a payroll system, so that you can identify if your shortlisted systems have these features:
- Tax and regulatory compliant
Most often, the decision to subscribe to a payroll system is to simplify the monthly calculations of various deductions. The system must be continuously refreshed to reflect the latest updates and rates to give you the confidence on relying on the software for your payroll management.
- Easy implementation
Payroll system implementation requires the collaboration of both the provider and the customer, therefore you should have an idea of how much effort and time is required from your HR personnel to have the system up and running. Expect to provide data such as employee details, department names, staff categories or ranks, deductions and EPF and Socso numbers. It would also be helpful if you have contacts within your industry who are using the same provider, so that you can ask how the roll-out went for them.
- Integration with other systems
Integration wouldn’t be a problem if you don’t already have an accounting, HR or time system. However, if your company already has one or more of such systems running, check with the provider if the payroll system works with the other software and how seamless would the integration be. You definitely don’t want to spend time putting the same set of data into multiple systems. There are also all-in-one solutions in the market encompassing payroll, accounting and point-of-sale, like ours.
- Ease of use
Bear in mind that it isn’t only the HR department who would be using the payroll system, but employees throughout the company too. The system should be easy enough for a first-timer to navigate through without requiring training, or else your HR department would soon be dealing with a lot of queries on how to download a pay slip and so on.
Ask the provider about the system’s historical updates, eg. how many updates that the system has undergone in the past one year, was there any downtime, how long did each downtime take, is each update chargeable. These would give you an idea of the system’s availability to the employees. Remember that it does not look good too if frequent notifications have to be sent company-wide that the system is ‘under maintenance’.
- Security features
Payroll systems contain a lot of highly confidential information that could be used for identity theft or fraud, if fallen into the wrong hands. Because the system is accessed by employees company-wide, there must be security measures in place across their devices too. Consider if you’d only want the system accessible on company-issued laptops, and enquire if the system has data encryption and multi-factor authentication. There should also be a dedicated risk assessment team.
With a payroll system like SQL payroll software malaysia that best meets your company’s needs, your employees will be more empowered. The HR personnel’s scope will be made more accurate and efficient while the rest of the employees are able to get their payroll information at their fingertips with lesser reliance of the HR department.