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Businesses are under pressure to ensure they are in compliance with payroll regulations, and failure to stay in compliance can lead to hefty fines, legal troubles, and damage to the company’s reputation. This is where payroll compliance software steps in as a crucial tool for businesses of all sizes.
Workstem will guide you in delving into payroll compliance software, exploring the best way to transform your compliance processes and elevate your performance to the next level. Let’s get started!
What is payroll compliance software?
Payroll compliance software is a specialised tool that helps businesses manage their payroll processes while ensuring they adhere to the laws and regulations governing employee compensation.
Payroll compliance software automates and streamlines payroll tasks, such as salary and wage calculation, tax deduction, etc., making it easier for organisations to stay compliant and boost efficiency.
Why is payroll compliance software important for businesses?
Here are several reasons summarised by Workstem to tell you why payroll compliance software is so important for business management.
Avoid costly penalties
Non-compliance with payroll regulations can result in penalties and fines. Payroll compliance software helps businesses accurately calculate and report payroll taxes, reducing the risk of costly mistakes.
Save time and resources
Manual payroll processing is time-consuming and prone to errors. Payroll compliance software automates many aspects of the payroll process, freeing up valuable time and resources for other essential tasks.
Automation enhances accuracy
Human errors in payroll can lead to disgruntled employees and legal issues. Payroll compliance software minimises manual errors and cross-checking workload by automating calculations. You can save all data in the cloud for accurate record-keeping.
Keeping up with changing regulations
Payroll regulations can change frequently. Payroll compliance software may sync with Fair Work and stay up-to-date with these changes, ensuring that your business remains in compliance without the need for constant manual research and checks.
Features of payroll compliance software
Normally, payroll compliance software has powerful features to automate all your payroll processes. You may have these covered by using payroll compliance software:
- Award interpretation & EA
Set your own rules to match your company’s unique payroll policies, allowing for custom pay structures and deductions. Ensure adherence to minimum wage, overtime pay, and other wage-related compliance requirements, no matter you’re on which industry award and under EAs.
- Automated Updates
Stay up-to-date with changing payroll laws and regulations through automatic payroll compliance software updates that incorporate the latest compliance requirements. A good payroll compliance software can handle compliance requirements specific to different states, including tax rates and labour laws.
- Tax calculation and filing
Payroll compliance software automates the calculation of various payroll taxes, including income tax, Social Security, and Medicare. It also assists in filing tax forms and making tax payments to government agencies.
- Manage employee deductions
Customise payroll additions and deductions such as benefits and SG contributions. A good payroll compliance software ensures deductions are accurately calculated and deducted from employees’ paychecks.
Employee Self-Service Portals
Provide employees with access to their payroll information, and by one link can they update their information directly to the supervisors. The multi-language interface and real-time notifications in workforce management.
Record-keeping and reports
Maintain a secure database of payroll records for auditing purposes. Generate comprehensive compliance reports that detail payroll transactions, tax withholdings, and deductions.
Integration with HR and accounting systems
Seamlessly integrate payroll compliance software with your HR management and accounting systems for a unified view of employee data and financial records.
Maintain the security and confidentiality of sensitive payroll data, adhering to data protection and certified by ISO. Implement role-based access controls to restrict access to sensitive payroll information, ensuring only authorised personnel can make changes or view specific data.
How to choose the right payroll compliance software?
When selecting payroll compliance software for your business, consider the following factors:
- Comprehensive compliance coverage
Ensure the software covers all relevant payroll compliance regulations in your region.
- Ease of use
User-friendly interfaces and features make it easier for your team to adapt to the software quickly.
Choose software that can grow with your business.
Look for payroll compliance software that integrates seamlessly with your existing HR and accounting system, or manage payroll issues in a real all-in-one and automated platform.
- Support and training
Reliable customer support is crucial for troubleshooting and assistance. Access to customer support and training resources to assist with software implementation, troubleshooting, and ongoing use.
Revolutionise compliance with Worsktem: Unlock next-level performance!
Workstem is a one-stop HR & payroll platform that can streamline payroll management for both employers and employees. We integrate rostering, attendance, leave and payroll, with the AI engine, all payroll-related data will be processed in one database and then auto-calculate the overtime pay according to different rates.
Workstem helps automate record-keeping, track hours worked, calculate payment and stay in compliance. By using Workstem, you can simplify the process of managing payroll and improve transparency in your workplace.
Workstem has industry experts to help the software implementation and training. With Workstem, no matter your people are full-time, part-time or casual, no matter they’re under what award, even EA, we can handle all automatically!