There’s a lot on the line when it comes to payroll processing. Working with numbers, budgets, timesheets, and government documents requires careful planning, collaboration, and execution. When your HR department spends most of its time on payroll processes, you could be wasting a lot of time due to inefficiencies.
Furthermore, you may be losing money, staff, or even face fines for late payroll payments, especially if you are not using the best payroll software in Kenya. Following best payroll practices will help you maximize the effectiveness of your payroll system while also minimizing errors. Before we look at the best payroll practices let’s first look at what payroll processing is.
Payroll processing is a critical corporate operation that involves calculating an employee’s net pay after deducting all applicable taxes and deductions. If you don’t know where to start, the procedure can be intimidating. Therefore the payroll administrator must organize the payroll process step by step to ensure that it runs smoothly.
A decent payroll involves a lot of intricate calculations and assumptions, and each organization has its own set of policies to prevent errors.
You’ll need to follow this payroll best practices to ensure all of your employees are happy with what they have during the next payroll.
Look, it’s no secret really. If you are not using the best payroll software in Kenya, you are losing out. An inaccurate, unreliable and complex payroll software is one of the most typical reasons for payroll inefficiencies. It may be time to upgrade if you’re still doing things manually or using old payroll software. And of course, Wagemaster is the best payroll software in Kenya for businesses like yours.
Using payroll software that does the expected job with little no to no manual intervention is the best way to go. Wagemaster, for example, works magic with your payroll processing. With automated calculations for all the critical tax deductions as well reports that are easy to understand, Wageamster brings order, reliability, and efficiency in your payroll processing like other software in Kenya.
It can reduce hours of work to minutes by combining automation and connection across different platforms. Many entrepreneurs are hesitant when it comes to investing in payroll software. They’re worried about training, integration, and costs. Working with Wagemaster will allow you access to the best payroll software in Kenya with a dedicated team to support you all the way.
You must correctly classify your employees for your payroll process to work. According to the labor rights in the Kenyan constitution, the workers may be classified into three categories. That is permanent workers, casual workers, and fixed-term contract workers. Wagemaster covers all these categories.
You must know the kind of employees you have to provide and file the correct tax forms. You could face major tax problems with the KRA if you misclassify your employees. Mistakes like that might have a negative influence on your company’s revenue if you’re punished with government fines.
Before you start the payroll process, double-check that you have appropriately categorized every one of your employees, regardless of how many you have.
It makes no sense to collect and complete your employees’ payroll paperwork if you are going to miss the deadlines. The state Department of Labor in Kenya has specific requirements for when and how businesses should submit payroll paperwork.
Failure to meet these dates, you and your company could face serious punishments. If you first have your deadlines in order, many of the other critical habits you create will fall into place. Retirement statements are one of the most crucial payroll tax dates and deadlines.
Businesses must keep their employees’ retirement statements, which include enrollment, payment, and deduction documents. You should also make sure that you continually add minor dates to your payroll calendar. This helps you know when your payroll process should be completed, whether on a monthly, quarterly, or annual basis. You can use a cloud-based calendar tool if you want to transfer your payroll procedures online.
Payroll policies that are clear and open help your company prevent mistakes caused by a lack of understanding of the payroll system. These types of mistakes occur when a policy is not clearly explained to an employee, or when an employee is confused by the deductions made from their salary.
Payroll efficiency can be a daily activity for your company if you focus on issues like underpaid taxes or employee misclassification. With clear policies employees may easily grasp how payroll procedures function, how they are categorized as employees, and how their salaries are calculated.
If you are using an online system, it’s imperative to understand the data storage risks that you expose your employees to. This also means that your company’s sensitive information is stored in the cloud. If you have to choose cloud payroll software, be sure their data policies are in your best interest otherwise you risk a lot.
Although Wagemaster is not currently online, you can download and store backups safely in formats that are easily transferable when you need to access it somewhere else off the default site.
If your employees frequently complain about payroll, you know something isn’t right with the system. Frequent complaints, as well as payroll errors, are indicators that you should be auditing the complete payroll process regularly. Even automated systems can make mistakes and if you don’t catch them in time, they might cost you a lot of money.
Double-check that everything is working properly if you’re utilizing add-ons or plugins to connect your payroll software to your time and attendance system or accounting program.
Companies benefit from outsourcing payroll administration because it saves them time and money owing to economies of scale. Payroll and HR service providers take care of the printing and signing of paychecks, the generation of reports, and the submission of taxes to government agencies.
Payroll processing standards and regulations are always changing, making it tough for businesses to stay up to date with the latest changes. Wagemaster ensures you stay up to date on regulatory changes so you can be sure to avoid costly misinformation. This is one of the reasons why Wagemaster is the best payroll software in Kenya. For a detailed list of Wagemaster features, click here.
These payroll best practices can provide a tremendous return on investment in terms of time, cost, and efficiency for your company. Making your payroll is now easier than ever thanks to Wagemaster, the best payroll and HR software in Kenya. Use these best payroll practices to revolutionize your payroll processing and while at it, think Wagemaster.
Starting at just KES 17,400, we have the best pricing packages for your organization. You only need to pay once and you have the software for life. Review our pricing here or contact us here to schedule a no-commitment online or physical demo today.