Before discussing the types of payroll systems, it is important to understand what payroll systems are. They are systems businesses use to make the process of handling payments to their employees easier. Now, this is not just about payments. Many advanced payroll systems, like the Payroll System in Saudi Arabia provided by MenaITech, offer numerous features, such as employment histories, employee profiles, salary details, leave reports, complaints against employees, hours worked, gratuity calculation, and employee handbook.
Additional features include important reminders. On a Payroll System in Saudi Arabia, there is a world of its own simply to benefit the employees and employers to the fullest extent. Without the help of payroll systems, businesses would be vulnerable as there would be no solid paper trail and there would be feuds between the employers and employees.
Types of Payroll Systems
- In-House Payroll Systems
In-house payroll systems are for small businesses that employ no more than 10 or 12 people. These businesses may have flexible working hours. There are a few downsides to this type of payroll system one of which is that the employee responsible for the payroll system must stay active at all times to keep an eye on complaints, as well as the hours that other employees log in. This system also leaves the business vulnerable to security hacks.
This type of system requires businesses to outsource work to a qualified accountant. The accountant then maintains a record of all financials, makes payroll slips, and keeps up with the tax issues. It is important to ensure that the accountant is an expert in all the services you are looking for and also is flexible when it comes to time and is capable of making quick changes when the need presents itself. When you outsource, you are responsible for accurate deposits as well as payments
- Online Payroll
There are online payroll systems available that allow you to monitor the payroll at all hours of the day with the aid of a secure web browser. This prevents you from purchasing extra equipment and software. All you have to do is update the information from any desktop. You can easily sign up for quick updates and this makes the whole process of payroll much easier, allowing you to concentrate on other aspects of your business.
To conclude, it is essential to have payroll systems in place while running a business, like the Payroll System in Saudi Arabia offered by MenaITech which you can use online and eliminate the hassle of in-house and accounting payroll systems.
Why Should You Automate Your Payroll System
An automated payroll system in Riyadh empowers the HR department to process payroll aspects via a computerized, state of the art system. A manual payroll system in Riyadh, which entails payrolls to be processed by hand, reduces the speed of the procedure down to a bare crawl and compromises the accuracy of operations. On the other hand, automating the system leaves no rooms for errors, makes things simpler and helps with your bottom line. Here’s why you should consider automating your payroll system in Riyadh if you haven’t already:
- Time-Keeping Transportation
In most organizations, hourly workers are paid according to the number of hours worked during the day. A timekeeping system is employed to track work hours of employees and pay them accordingly. Therefore, it is highly indispensable that each employee’s working hours are accurately computed. Old school companies are still using time clocks for tracking working hours, which opens doors for mistakes.
On the other hand, an automated timekeeping system allows the employer to incorporate all the time clock data accurately into a payroll system. In cutting edge payroll systems in Riyadh, employees use a badge or a swipe card, or fingerprint method for timing in and out. After all the check-in entries are transferred into the payroll software, the payroll system works on computing the working hours. The only task of the payroll staff member is to ensure that all the data is transported appropriately.
- Payment Calculation
An automated payroll system makes use of cutting edge payroll software to compute all salaries. Gross-to-net earnings are calculated by the payroll software, based on the information input by the payroll representatives. Thus, the results are highly dependent on the accuracy of the input. The automated system performs every sort of payments, including tuition reimbursements and auto payments, salary deductions, retroactive pay, pay raises, bonuses, commissions, and double time, overtime, and hourly salaries. The most notable feature of an automated payroll system is that it eliminates manual paycheck writing. The system enables direct deposit, and automatically generates stubs and paychecks.
- Deduction Calculation
Salary deductions are an imperative part of payroll processing. Deductions can be because of missed days or shifts not completed. Also, if any employees have taken on a loan from the company, and the instalments will be deducted from their salary.
Businesses have to maintain the payroll records of their employees for a number of reasons, and also because it is a legal requirement. Doing it by hand can be time-consuming and full of hassle. This is why it is better to invest in the payroll system offered by MenaITech to automate the process.