Large and extra-large organizations have unique payroll needs. That’s where enterprise payroll solutions — advanced and automated software specifically designed for large companies with more than 500 employees — come in. Enterprise services offer ways to manage high-volume payroll operations, including different currencies and national regulations and compliance requirements. Effective enterprise payroll management systems centralize payroll information, streamlining operations and reducing human error.
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An EY survey revealed that “60 per cent of organizations agree that a truly global payroll delivery model would bring significant benefits.” Many enterprise automation software providers boast such scalability.
The benefits of enterprise payroll automation systems include the below.
- Enhanced and centralized operational efficiency, including:
- Integrated departments on one platform to avoid disconnected workflows and remove siloed systems;
- Automation for repetitive, time-consuming manual tasks to free up time and reduce errors; and
- Increased productivity within human capital management teams.
- Centralized data to make better decisions.
- Improved compliance: Enterprise payroll automation can help keep leaders apprised of industry regulations locally, nationally and internationally to ensure that changes are implemented correctly and on time.
- Enhanced data security: Data protection includes multi-factor authentication, role-based access control to ensure only the necessary people have access to payroll data, and systems approval checks and balances to prevent fraud.
- Elevated opportunities to collaborate and communicate with teams.
- Data in a centralized place, available in “real time,” allows teams in different locations and time zones an effective way to share critical data.
- Enterprise systems that operate using the cloud can be accessed globally.
” An EY survey revealed that “60 per cent of organizations agree that a truly global payroll delivery model would bring significant benefits. ”
Payroll automation challenges in large organizations
The opportunities for solutions afforded by those using enterprise payroll systems often go hand in hand with the most common payroll challenges, regardless of organization size. Such challenges may include the below.
- Keeping up with and meeting evolving payroll regulations (this can be particularly complex for larger, multinational organizations).
- Human errors, such as:
- Missing or incorrect statutory remittance, including tax withholding and calculation errors;
- Inaccurate time tracking for non-salaried employees;
- Employee-classification errors;
- Delayed or inaccurate benefits tracking;
- Garnishment mistakes;
- Under- and overpayments;
- Missing or late vacation or overtime payments;
- Lack of payroll reconciliation; and
- Skipped payroll reconciliation and year-to-date totals.
- Security and data confidentiality.
- Inadequate system backup as a part of the organization’s disaster-recovery plans.
- Inaccurate and incomplete data.
- Delays in payroll reporting.
Popular platforms
There is no shortage of choices for organizations seeking enterprise solutions. While many will opt for legacy solutions that seamlessly integrate with other software used in the organization, others may choose the platforms most popular among industry peers. Thorough research, alignment with organizational goals and strategy are paramount in selecting, maintaining, changing or updating any payroll platform.
Examples of leading enterprise payroll platforms available include offerings from the below.
- ADP Full Service Payroll for Enterprises
- Ceridian Dayforce
- CloudPay
- Collage HR
- Intuit Quickbooks (offering enterprise payroll solutions for smaller organizations with 26 to 99 employees)
- Oyster HR
- Paylocity
- Rippling
- Workday
Note: The National Payroll Institute does not endorse specific enterprise payroll automation solutions.
Enterprise payroll automation best practices
The role of enterprise payroll automation is to enhance the accuracy and centralization of payroll systems, resulting in reduced costs and better overall reporting.
Critical factors to keep in mind when selecting, auditing or maintaining such a system are general payroll best practices, such as:
- Unifying global payroll systems and other appropriate platforms to simplify and uniformly consolidate operations;
- Regularly auditing all systems and making appropriate changes based on results;
- Clearly communicating payroll policies and emerging changes to procedures to your payroll team and impacted employees;
- Maintaining transparency of payroll to employees to ensure any errors are caught and fixed quickly; and
- Investing in professional development to ensure that payroll professionals are aware of emerging regulations and can ensure that enterprise systems are ready to comply.
Enterprise payroll management in practice
Enterprise payroll automation is a critical efficiency strategy for large organizations. Like anything else in business, new or elevated systems require a well-thought-out strategy and implementation process. Heather Hetterick, Global Director of HRIS at Multi-Color Corporation, told Ceridian Dayforce, “You also can’t underestimate the importance of change management. Even if you’re adopting the best tool with all of the latest bells and whistles, unless you’re marrying it with an effective change management program across the organization, it just won’t get used the way you intend it to.”
Hetterick also reiterates the importance of consistent communication and platform advocates during implementation, saying, “You have to have champions in every region to help support you and to be in constant communication with them before, during and after deployment.”
“Enterprise payroll automation: Strategies for large organizations ” ?
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