The Problem
A medium-sized manufacturing company needed to transition from its outdated payroll software to the use of custom software for its payroll processing. The company had around 80 employees at the time of transition. As the business expanded, the HR team faced increasing challenges in processing payroll efficiently. With a combination of manual calculations and outdated payroll software, they struggled with frequent errors, delayed payroll cycles, and frustration from employees about payment discrepancies.The Solution
The team commenced a review of the existing software of how payroll is operated and collection of required information needed for the update of the custom payroll software. The key features of the new system included:- Smooth Transition: The transition and transfer of information from the manual calculations to the customized payroll system was seamless and easy.
- Automated Data Integration: The system integrated directly with the company’s time-tracking, ensuring that period worked, and other variables were correctly accounted for.
- Real-Time Tax Calculation: The custom payroll software was designed to update tax rates, benefits, and deductions based on the latest local, state, and federal regulations. This minimized the risk of compliance errors.
- Self-Service Portal: Employees were given access to a secure self-service portal where they could view their pay slips. This reduced the volume of HR inquiries regarding payroll.
- Customizable Reporting: The system allowed the HR team to generate customized payroll reports for auditing purposes, which saved time when preparing for year-end tasks.
The Result
After implementing the custom payroll system, the custom payroll software saw improvement across these key areas:- Payroll errors dropped as a result of using the custom system.
- The time spent on processing payroll was reduced. What used to take several days now took only a few hours, allowing the HR team to focus on other strategic tasks.
- With automated tax calculations, deductions, and benefit updates, the HR team no longer had to manually check for errors, which also saved valuable time.
- Timely and accurate payments led to a noticeable increase in employee satisfaction, with fewer complaints about payroll issues.
- The payroll system’s automatic updates ensured that the client was always in compliance with the latest tax and labor laws, significantly reducing the risk of costly fines and penalties.
- As the company continued to grow, the custom payroll solution was easily scalable to handle additional employees without the need for major system changes. The software could accommodate different employee classifications, benefits structures, and multiple tax jurisdictions.
