COMPLIANCE
way while meeting all payroll compliance reporting and withholding obligations. In our experience, refocusing your challenges into the themes that create risks provides a valuable starting point, and these often fall under the following topics. Data The accurate and timely receipt of upstream source data required to produce downstream reporting is imperative. Therefore, understanding forthcoming changes to the data required and the challenges in receiving it (particularly where errors have arisen in the past), can help to identify and be proactive in creating viable workarounds. This is particularly effective when trying to understand where there is a reliance on data from other parts of the business to keep payroll processes operating smoothly, and vice versa. Mapping these data connections can help to create a process and governance framework for the payroll operations to reduce risk and non-compliance. Skills and knowledge There is an undeniable appetite and shift to utilise technology that can create efficiencies, particularly to automate significantly manual tasks. In payroll this can include activities such as reconciliation of changes or uploading information that may be held on another system (for example, hours worked or overtime in a time and attendance system). It is
vital that the payroll team are upskilled to utilise the technology, understand the benefits it can offer, and understand its role in the process.
on systems and can spot problems if they arise. Therefore, payroll teams should have the opportunity and support to understand upcoming changes to then ensure processes (manual or automated) operate correctly to result in the correct reporting outcomes. Technology Broader technology transformation projects may have an impact on, or a vested interest in, the operation of payroll. For example, where a new human resources system or time and attendance system may be able to integrate with an API feed to the payroll system enabling the automatic information feeds. Maximising the benefits Taking the above themes into consideration not only supports compliance in getting payroll right, but also helps to elevate the payroll function beyond just the operational aspects. An effective and deliberately thought-out payroll operation can add strategic value for a business. Data collated can be used to deliver management insight, streamline costs by efficient delivery and engage a qualified payroll team with a varied skillset and opportunity to learn. Fundamentally, the question to consider for your current operation would be “Is there a better way?” and if you think so, payroll consulting provides the opportunity to discover how. n
Diligence A robust testing or review process of any automated process is fundamental to ensure it is understood what is being achieved and that you are not over reliant “There is an undeniable appetite and shift to utilise technology that can create efficiencies, particularly to automate significantly manual tasks. In payroll this can include activities such as reconciliation of changes or uploading information that may be held on another system the game”
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| Professional in Payroll, Pensions and Reward |
Issue 106 | December 2024 - January 2025
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