An automated payroll system uses technology integrations to remove manual
payroll tasks, making the payroll process more efficient.
Global automated payroll systems often use a combination of technology-based
tools and knowledgeable third-party service providers to get the job done.
This gives you the best of both worlds—local payroll expertise and data
precision at a payroll cost reduction.
Types of automated payroll systems
When you think of automation, technology may be the first thing that comes to
mind. But buying more software to run your payroll processes isn’t the only
option on the table.
Automated payroll can include technology that streamlines in-house processes
and improves efficiency. But it can also involve combining those technologies
with outsourced managed payroll services. Beyond just paying your employees,
global businesses should choose a combination of automation solutions that
cover:
- Attendance reporting
- Timekeeping
- Tax filing and compliance
- Employee types
- New hires
- Separations
- Employee benefits administration
Benefits of payroll automation
While the business case for automated payroll is easy to make, especially for
complicated multinational payroll processing, no two providers or business
models are the same. Take some time to familiarize yourself with what’s
possible using automated payroll interventions. Then, shop around for the best
fit for your needs.
Here are some of the most common features—and their benefits—to look for in
your payroll software and services.
1. Never miss a compliance deadline again with calendar automation
When you run a global company, your payroll manager has a complicated list of
compliance needs to keep track of. Missing a payment deadline, for example,
can have significant financial consequences. That’s why the right payroll
automation tools include calendar automations that help you stay on top of
important dates and compliance requirements.
2. Save money, time and effort with robotic payroll processing
One clear benefit of automated payroll is that it eliminates the need for
tedious spreadsheets and time-consuming, manual calculations. Ultimately, this
reduces the workload for your staff and lowers your payroll costs, producing
more accurate payroll in a fraction of the time.
Payroll accuracy and efficiency is the top priority among 85% of global
employers. And many are solving their payroll challenges using robotic automations. These technologies aim to increase day-to-day efficiencies, as well as increase the availability of
insightful payroll data.
If you think about it, payroll is the perfect place to adopt automations. The
financial calculations are largely rules-driven and vary only based on the
inputs to the calculation. Side by side, machines are clearly better at
running these numbers than humans.
Multinational employers can also use robotic payroll processing to complete
thorough and effective audits, which provide more control over payroll
spending and processes, ultimately supporting strong operational growth.
3. Improve precision with automated error detection
Fewer errors are a big win for payroll—and for the company. An automated
payroll system eliminates the human error variable
in the
equation.
We’ve all heard (or witnessed) a horror story about a misplaced decimal or
miskeyed number. While your payroll department is undoubtedly full of
exceptional talent, it’s too easy to make a simple data entry mistake that has
big consequences.
Precision and accuracy is one area where automation wins.
4. Stop mistakes before they happen with built-in validation
Not only can an automated payroll help you detect errors, but in many cases,
it can prevent them from ever occurring in the first place.
Pesky data entry errors are to blame for the majority of payroll errors. Did
you know that 32% of global companies struggle with inaccurate source data as a top
cause of costly payroll errors?
Automated payroll systems can restrict inputs by field and require additional
verification of sensitive information, ensuring that all inputs are entered
correctly and verified for accuracy before any payments are processed using
that data.
These validation steps go hand-in-hand with the ability to detect payroll
fraud.
5. Simplify your process review and identify trends with automated payroll reports
Built-in reporting features can automate your payroll reports,
providing you with a clear and concise look at exactly what is going on with
your payroll any time you want it. You can also use automated payroll
reporting to feed your data into a dashboard that helps you to identify
emerging trends (at the click of a button).
How much time does your company spend analyzing data?
With an automated payroll system, you can see real-time data on:
- Attendance
- Earnings
- Taxes
- Cash flow
- And more
These automated reports cut your payroll analysis time down from days or hours
to mere minutes. They also help the business to make better decisions so you
can be responsive to changing labor needs.
6. Uncover fraud with at-a-glance analysis
The same automated reporting features that will help you stay on top of your
payroll activity will also help you flag suspicious activity and identify
payroll fraud.
Take advantage of automation features to:
- Prevent timekeeping manipulation
- Detect and eliminate ghost employees
- Stop paper check fraud
With automated payroll, it’s easier to see emerging trends that might point to
possible payroll fraud. Plus, the technology provides enhanced security
measures that can help to prevent fraud from the get-go.
Data security features like two-factor authentication and encryption offer a
lot more protection than emailed spreadsheets and printed hard copies. Half
of all data breaches involve compromised payroll data;
an automated payroll system with the right security features can help.
The bottom line on automated payroll systems
Technology can offer plenty of fancy bells and whistles for your global
payroll process. A lot of these features are genuinely useful, but others are
more for show. Choosing the right automations is an individualized choice. To
reap the rewards of global payroll automation, you need a solution that aligns
with your needs.
Curious what automation features Safeguard Global offers? Visit our
website to learn more about our international payroll services or drop us a line.