Remote work models have changed the way we run our organizations and how we navigate different processes. These changes have been made to improve productivity and encourage a better work/life balance for our employees. One way we’ve been able to do so is by utilizing payroll management software. The benefits and many uses of this software have worked to enhance our payroll processes.
How Does Remote Work Impact Payroll Management?
These impacts are not inherently negative. In fact, the use of a remote work model has fueled creativity in the usage of technology. While technology has long been a factor in how companies operate, working remotely has pushed businesses into a more technologically advanced space. By investing in technology, companies can show that they’re able and willing to continuously invest in their employees to make their lives and jobs easier. The creation and implementation of different software and systems have allowed organizations to improve upon their typical processes. But what are some of the obstacles that the workforce has had to face?
Compliances
Compliance can become tricky, especially when your workers are stationed across the country or even the world. It’s up to your organization to ensure compliance with the different states’ regulations. This wasn’t a typical issue with a typical, on-site work model. If your employees were required to be on-site, then they were often operating within the same state, making compliance much easier.
Thankfully, payroll software systems should be able to help you with your compliance research. Instead of spending hours sifting through different websites, your payroll software will help you stay up to date on the different compliances for your employees’ locations. This also takes into consideration the different time zones and currencies.
Tax Implications
Similar to different state compliance, different tax laws are dependent on where your employees are located. This can be in terms of tax reductions in their checks as well as other regulations their states may have. This becomes more difficult when you employ individuals from multiple different states, as you’ll need to keep track of the ever-changing rules and regulations.
Similarly to the way payroll management systems can help you keep track of compliances, they can also assist in understanding different tax laws and reductions. They can also assist you and your employees with their tax filing and receiving tax forms. This can make tax season less stressful and much easier to understand.
Data Privacy and Security
When working in-house, there are typically network security protocols in place to ensure the safety of confidential employee data. This is also true for remote working models, but payroll would be across multiple networks. When data is stored in multiple locations, network security may become more complicated, so it’s important to ensure that security protocols are up-to-date to keep data safe.
With your payroll management system, you can download a secure payroll system. This software encrypts your data so that it cannot be easily accessed by people outside of your company. It is also a beneficial way to store all your confidential payroll data without fear of it getting into the hands of unauthorized personnel.
How Has Payroll Changed To Adjust to Remote Work?
Payroll systems and processes are always changing to fit the company’s numbers, needs, and desires. Remote work has allowed businesses access to employees nationwide and globally, increasing the need for additional adjustments. These developments have increased the overall productivity and efficiency of payroll processes and management.
Paperless Paychecks
Of course, physical paychecks were slowly losing their place in the workplace before remote work models became widely used. However, for those companies and employees who still relied on physical checks, this was a huge adjustment. Employees are now almost always required to have a bank account and direct deposit set up. This isn’t only easier for the company, but for the employee as well. Having to wait an extra week or two for a physical check can be detrimental to the employee.
This also pushed companies to become fully digital in how they processed payroll. They’ve had to implement different software to help process the payroll and to be sure their employees receive their paychecks promptly. There is also an ability to create an employee self-service portal where your employees can access their paystubs themselves.
Onboarding
Before remote work, employees can remember filling out stacks of paperwork in the office. These documents ranged from tax documents, security protocols, full employee handbooks, and other necessary paperwork. With a remote work model, companies had to switch to uploading all their documents to a digital format. This required them to use eSigniture software to get their employees’ signatures and tax information.
Thankfully, HR software can allow employees to fill out the necessary paperwork and send it directly to the people who need it. This can be hiring managers and payroll professionals, making the onboarding process much quicker.
Integration With HR
It used to be that payroll and human resources were two separate entities. However, remote work has allowed their job duties to overlap, leading payroll to become a sub-unit under HR. This is because the tasks that payroll performs can be done by other HR professionals, especially with the use of HRIS, CRM, and LMS systems.
This integration was a major adjustment for businesses but has proved to be beneficial. A lot of the payroll operations can be automated with technology, preventing payroll professionals from constantly having a huge workload. This can help them identify any discrepancies and correct any inaccuracies.
Working Hours
The typical 9-5 may have worked with an on-site work model, but for remote employees, this might not work. Employing workers from different time zones can prevent them from working the typical service hours you used to have.
Some adjustments you can make could be tweaking your working hours, or even using time-tracking software. That way, your employees can work whenever they can and still get paid accordingly.
