Undoubtedly, employees are the most valuable assets of any organisation which is why as an employer you have to be intentional about their payroll processing. The reason is that Employees are the face of the organisation, they contribute to the organization’s profits, interact with customers at different levels, and execute daily tasks that keep the company in business.
As a business owner, the best you can do aside from appreciating them with words is to compensate them monetarily for their time, effort, and input. By this, I mean taking responsibility for their payroll processing in such a way that calculation errors are not recorded and employees are paid on time.
Due to the rigorous task surrounding payroll processing, you will often find small businesses struggle with providing payroll processing solutions to their employees, and large companies outsource their payroll processing role to a third-party payroll processing service.
To fully understand the essence of payroll processing, I will be defining payroll processing before delving into the 7 facts that would impress you about payroll processing.
What is Payroll Processing?
Payroll processing is the task of managing employees’ salaries based on hours worked after deducting the company’s benefits and taxes. Businesses that struggle with payroll processing end up paying their employees late or incorrectly. This alone can lower employees’ morale, legal compliance, and the business’s overall performance.
To avoid the above, you should employ an HR manager or accountant to handle payroll processing for your small business or outsource the payroll processing role to a third-party payroll processing service provider like Earnipay.
At Earnipay, we provide a cutting-edge payroll processing solution that simplifies payroll management for your HR manager. Our payroll product comes with a user-friendly interface that empowers HR managers to effortlessly create flexible pay structures and handle employee details.
7 facts about payroll processing that would impress you
There are many things I bet you did not know about payroll processing. Well, read to the end to find out facts that would impress you about payroll processing.
- Leave allowance is not authorized by law.
It is not a must for an employer to give additional salary to an employee that goes on leave. According to the labor act of 2004, an employee is entitled to take six days off in a year with full pay at month’s end.
2. Anyone earning below the minimum wage is not liable to pay tax.
The federal government determines the minimum wage in Nigeria and does not apply to part-time workers who work less than 40 hours a week.
3. The word “salary” is traced back to Roman history.
Originally, soldiers were paid with salt instead of money after each day’s work, and it was called “salarium”, which means salary in the English Language.
4. The total payroll cost of an employee is more than the salary to the employer.
Here is the catch, as an employee, you are blown away by the salary you negotiated with your employer as your take home.
When in the real sense, your employer takes care of other expenses such as leave allowance, health insurance, Etc. that you are not aware of.
What is Total Payroll Cost?
Total payroll cost is the sum of all expenses incurred by an employer to reimburse His/Her employee.
5. According to Visually, over 56% of employers across Africa have indicated that payroll processing needs improvement to enable payroll practices and policies.
6. Payroll processing is designed for businesses of all sizes.
An example is our earnipay payroll processing product which is designed for small startups and large corporations. We are suitable for any company that needs to manage payroll to support their operations.
7. Payroll processing apps ensure sensitive financial information is saved on the cloud. Which guarantees the confidentiality of your user’s data.
Why do I need Payroll Processing?
There are many reasons you need our payroll processing product for your business. They are as follows:
- To automate your payroll and reduce manual effect: Going by manual effect, you will make lots of calculation errors. And it will cost you the time you would have used to do something else.
- You are guaranteed quick and easy financing options to help your business meet up its payroll obligations and avoid financial challenges that may arise from unexpected expenses or revenue fluctuations.
- To meet your unique business needs.
- It is affordable with no hidden fees.
- For comprehensive reports for real-time people and payroll insights to help your business make informed decisions about its finances and operations.
- It complies with relevant regulations and secured data management.
How do I get started with Earnipay’s Payroll solution?
Here is how to sign up and use Earnipay’s payroll processing and financing product:
- On our website, click on the “Sign Up” button.
- Enter your contact and business information to create an account.
- Set up your payroll and financing options. This includes selecting your payroll frequency, setting up automatic payments, and choosing the financing options that best meet your business needs.
- Begin processing payroll and accessing financing through the product platform.
You can contact our customer support if you have any questions or need assistance during the sign-up process or using the product.