HOW TO IMPLEMENT A NEW PAYROLL SYSTEM IN EASY STEPS

1. HOW TO IMPLEMENT A NEWPAYROLL SYSTEM IN EASYSTEPS When implementing a new payroll system in your company, there are a few things to remember. If the new system isn’t well-organized and planned, it can lead to mismanagement of salaries and taxes. In this article, we will look at 12 easy steps for implementing a new payrollsystem. Understanding theSystem Whenever you are implementing a new payroll system, it is important to understand it thoroughly. The team that is going to handle the system must know how it works. The new system will be different from the one you are currently using. Hence, having complete knowledge about its working isimportant. IntegratingSoftware When moving to a new payroll system, you need understand if it can integrate all your HR, accounting and ledger software. An ideal payroll software should have this function, whether in-built or as an add-on. It should be able to collate reports, and prevent duplicate entries and unwantedpaperwork. System Size andRequirements If you are running a small business, the payroll systemwill be smaller in size. As your employees grow, so will the size of the system. Small businesses or startups sometimes graduate to a computer-based payroll system as the organization grows. When implementing a new payroll system, you should consider whether its scope suits yourrequirements. EvaluationTeam The evaluation team comprises of employees who are stakeholders in the payroll processes. This is the team that helps you make decisions when selecting a new payroll software. The reason you should have a team of stakeholders is because they are going to fund the new system. Hence, it’s best to have them on board throughout the decision-makingprocess. Timing Whether implementing a new payroll system or transitioning from your old one, timing is very important. Implementing a new payroll system at the start of a new financial year orquarter www.paysquare.com

2. makes integrating accounts and data easier. Like starting with a clean slate. It is also easier to transfer data to the newsoftware. DataTransfer Does the new system allow for automated transfer of all data from your old system? Do you need to manually enter everything or can the data be imported? Again, checking that the data entered is equally important. The new system should be able to do allthat. ParallelProcessing To ensure that the new system is working well, you can run it alongside your existing system for a while. This will pop up any glitches or data that may have been missed/duplicated. Since you are familiar with your existing payroll system, you will know what to expect. This will make it easier to conclude whether the new system is workingefficiently. AdditionalHardware Implementing a new payroll system can be an added expense. Talk to your IT team and understand whether the current hardware is compatible with the new system. If it isn’t, then you may need to purchase new one for the new system. Is this an expense that you are ready for? If not, you may need to rethink your choice ofsoftware. www.paysquare.com

3. Set PaymentMethods Setting up flexible payment methods that give your employees gives them multiple options for receiving their money. For instance, some people prefer bank transfers while others prefer payroll cards or cheques. This gives them the chance to manage their finances better. Does your new payroll system offer thisflexibility? Vendor TrackRecord There is no room for error when it comes to your employees’ paychecks. Hence, when selecting a new payroll system to implement, the vendor must be chosen wisely. Go with someone who has a proven, positive track record. There’s nothing wrong with going for a new vendor provided you have faith in his services. However, for a process like payroll, it’s best to play it safe. The vendor must be credible, reliable, established, and have a positive market presence. He should follow through on post-sales serviceterms. CustomerSupport This adds to the credibility of the vendor from whom you purchase the new payroll management system software. Does he offer comprehensive customer support? If you are located in a different time zone, does he have a support team that will be available to assist you during your working hours? Are they qualified to be providing such assistance? What is the average response time after you raise a query? Does the vendor have both telephone and online support? It is very important to ask these questionsbeforehand. References And the final step in choosing the right vendor - references. Obtain information about the vendor and his services from existing clients. Many a time, vendors provide these references themselves. But it is still prudent to do some independent enquiry. Talk to companies that are in different time zones or those that require constant customer support. These are the references that will count themost. www.paysquare.com