Reasons Your Payroll Management Has Become a Headache

There are numerous reasons your payroll management solution can become a nightmare. To manage, grow, and stabilize your business, you need to understand the fact that administrative processes need to run smoothly.

Naturally, you do not want to use a payroll management system that is expensive and time-consuming. That said, there is a good chance your organization will, in fact, face a few payroll problems. Payroll, management, after all, is the ultimate administrative task that can damage the productivity of your business even with a minor error.

Payroll processing is more than just a basic-back office task. It is no wonder businesses want to stay ahead of the curve. It means more companies want to shift from regional or local payroll system to a more centralized one to save cost without slowing the wheel of productivity.

Here are some of the most common reasons that can turn your payroll management difficult to execute:

What Does Payroll Management Involve?

In simple terms, payroll management represents collective financial records of your employees’ wages, salaries, bonuses, and as well as deductions. Whether you operate a small business or run a corporate giant, it is vital to pay close attention to your payroll management through the accounting department to prevent common issues.

You Overlooked Modern Payroll Management Practices

It is true, you may view Payroll as a mere commodity that serves companies’ interests. Unfortunately, several employees have limited information when it comes to payroll management’s role and functions. The moment you view your payroll management as an administrative burden, you will start to notice problems.

Evidently, you cannot spend your time to change the narrow-minded perception of top management. However, if you experience a major payroll management problem, you should ask yourself about the nature of your core services, cost-effectiveness, and awareness among different departments.

Software Solution Limitations

The usability of even a good commercial payroll solution will bound to have functionality issues to undertake various tasks. Apart from functional setbacks, your knowledge of payroll management makes all the difference. So long as you are aware of the potential of your software solution, you will be fine.

For instance, how you choose your payroll management system plays a significant role. It would be best if you chose the solution that caters to your needs. Furthermore, you should be able to anticipate any more features that you might need in the foreseeable future. Also, ensure that your payroll management does not have complaint restrictions that might deem it illegal in the eyes of the law.

Outdated Integrations

The world is changing, and so is the way organizations manage payrolls. As the new decade begins, new industry standards and payroll changes are already on the horizon. Technological support of mobile devices, tablets, and digital pay slips all play a vital role.

Concurrently, an outdated understanding of employees’ work habits such as career mobility and communication skills are important as well. Furthermore, automated enrollment and green initiatives have also become the need of the hour when it comes to payroll management.

Lack of Proactive Functionalities

One of the most common reasons your payroll management might be running into a wall is because of the undeserved undervalue within the company. Your business needs to see payroll management as a reactive force. From the payment of salaries to managing reports, your company should be aware of the complete set of operations.

That said, you cannot talk about various functionalities attached to payroll management without talking about security. Maybe you are storing crucial employee information in excel sheets, which are not entirely secure. In fact, it is one of the ways companies unknowingly leave the information in the hands of the wrong people. And any information leak can hurt your business.

Lack of Proficiency to Handle Real-Time Data

Without real-time information, employees would not be able to submit relevant records to the IRS. Your business should make it a priority to implement current real-time data integrations to support employees and follow the IRS guidelines.

First, you should ensure that you have real-time-information (RTI) compliant payroll management solution or consult with an accounting partner who understands RTI compliance. Second, do not forget to check your provider has enough choices to help you transition.

Unrealistic Cost Structure

Managing payroll system involves different cost-structure for different departments. Ideally, you should learn about the full features of the solution and inform your employees about its collective functionalities.

Also, opt for payroll management in terms of long-term commitment. Without a continuous support system and upgrades, you will add more cost to your payroll management system. You can, of course, train your employees about the possible changes within the payroll system.

Ability to Deal with Automatic Enrollment

You might be already aware of this, but automatic enrollment is, in fact, one of the essential components of your workplace’s pension initiatives. It serves the purpose that your employees live longer and save enough at the same time.

That said, automatic enrollment can have different stages. Ideally, it would be best if you prepared the automatic enrollment at least 18 months prior to the staging period. Once you understand the vitality of automatic enrollment, educate different departments about different payroll processes.


The right payroll management solution at the right time can render valuable benefits for your business. You can practically train your employees and then submit the records to the IRS without errors. It is a great way to take care of your payroll issues with a click of a button. Whether you want to get custom or detailed payroll reports, you should be able to analyze the data in the blink of an eye.

Today, companies can and should shift to a cloud-oriented payroll management system, which is much easier and secure than traditional solutions. Consequently, you will be able to comply with standard payroll compliance more easily. Ultimately, you will be able to save plenty of time. Though old school manual processing works, an efficient payroll management solution will undoubtedly save you a lot of money.

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