Trends market research report shares that the global payroll software market will grow at a CAGR of more than 9% during the forecast period 2019–2025.
More and more companies are gradually adopting cutting-edge payroll technology and payroll trends to simplify payroll processes and stay compliant with regulations.
If you are not using automated payroll software, you are probably stressing several hours in updating data, calculating it, and understanding the changing regulations. Implementing payroll technology ensures accuracy while dealing with adjustments; automates year-end reporting; calculates employee benefits with minimum effort and makes sure that you are compliant with the regulations such as HMRC and tax legislations.
As your trusted advisors, we have listed down these six key payroll trends that will help you thrive in 2023 and beyond:
1. Demand for cloud-based payroll solution
According to a report by Market Decipher, the Cloud-based Payroll Software Market size is expected to reach $13,374 million by 2028, growing at a CAGR of 6.8% during the forecast period of 2021 to 2028.
Cloud-based payroll solutions have become essential in the post-Covid world, where hybrid working has become a new normal.
The self-service features in cloud-based payroll allow managers and employees to access payroll information including their timecards, paid time off (PTO) requests and pension details from anywhere in real-time.
Similarly, cloud-based payroll ensures data protection as they invest heavily in security. Also, it provides regular software updates. Additionally, you will not have to worry about replacing your system as you grow since ERP integrated solutions like SiriusPayroll365 are scalable and are suitable for your growing business.
Apart from these, cloud-based payroll provides paperless solutions and gets you rid of physical documents. With a cloud-based solution, companies can reduce their carbon footprint, an added advantage for environmentally friendly organisations.
2. Integration with HR technology
Payroll and HR must work in synergy. By integrating payroll solution to your human resources system, you can increase efficiency in managing employee data and unlock the full ‘hire- to- retire’ cycle of your employees effectively. Through integrated payroll, both human resources and finance managers can access the same platform for accurate employee data; thus, removing the hassles of spending time on duplicate files and extracting information across various departments.
With the increasing need to analyse and use data, more companies are investing in payroll solutions that integrate with their CRM and ERP systems. With Payroll and HR integration, you can set up new employees, create benefit plans, and manage appraisals and performance review models. An HR integrated payroll solution will also enable your managers and staff members to access all essential information from a single dashboard, making data sharing across teams a breeze! For example, Dogma Group’s SiriusPayroll365 integrates seamlessly with Microsoft Dynamics 365 Business Central and Dynamics 365 for HR.
You can have this read if you want to understand the benefits of HR and Finance Integrated Payroll in detail.
3. Rise of AI Integrated payroll
Manual payroll processes are error-prone, slow, and mundane. Thus, businesses are widely adopting AI-integrated payroll solutions for quicker, accurate and efficient payroll processing and management. AI improves the efficiency of payment processing. For example: Deep analysis of payment trends, behavior and historical data through AI helps reduce manual intervention and enhance straight through processing (STP) rates. STP is an automated process of transfer without any manual intervention.
AI analyses variables like employee classification, age, withholding amount, allowing humans to give more time to cognitively demanding tasks. Similarly, chatbots can handle routine employee queries, helping in seamless communication with the work team.
The analysis created with the help of AI can provide valuable insights, help shape the company’s budget, identify unnecessary expenses, and contribute to the overall growth of your organisation.
4. Spreadsheets becoming outdated
Excel spreadsheets have been organising data for several years, but now, with the advent of modern technologies, companies are shifting to advanced tools.
Manual data entry in spreadsheets leaves room for errors and leads to complications like data and file duplication, which may result in cases like double payment to the same employee.
Spreadsheets lack data visualisation and are also time-consuming, unscalable, lack self-service tools and are not designed for online collaborative tasks. Thus, unsurprisingly, companies are adopting alternatives to the age-old system and switching to payroll software.
5. Stay compliant with complex legislation
Staying compliant is not an easy task. From labor law to statutory compliance, there are a myriad of legislation and rules you must understand when you are running a business. You never want to make mistakes; But as laws are constantly changing, it is quite a difficult job to remain updated. For many businesses, HMRC compliance and reporting are an additional source of confusion and potential fines.
With payroll software, you do not need to worry about compliance as this technology automates complex legislation and compliance.
You can ensure that your payroll is legally compliant by investing in an HMRC-compliant payroll solution that connects to HMRC and retrieves tax codes automatically. This helps you reduce errors and eliminate manual processes in HMRC reporting.
6. Multicurrency payroll to simplify international payroll transactions
Converting foreign currency data into local currencies, staying compliant with tax laws and labor policies of different countries are the main challenges for many employers in dealing with an internationally distributed workforce. However, we have a simple solution to this: Multicurrency payroll software; multi-currency-currency payroll is a technology that helps you manage international transactions through a single platform in real-time.
The software automates multi-currency payroll data to the local currency where your business is registered. It also allows convenient calculation by integrating the tax laws and labor policies of the respective countries within a single platform. Overall, this technology makes it easy for businesses with international franchises to manage payroll in multiple countries and hire the best talents across the globe.
Looking for an integrated payroll solution?
As your trusted advisors, we keep up with the latest payroll trends to help make sure your company can benefit from the latest technology and help you work smarter.
SiriusPayroll365 is a fully HMRC-compliant solution that manages your organisation’s payroll easily. SiriusPayroll365 streamlines your payroll processes, so your HR and Finance departments can ensure accuracy, timeliness, and compliance.
For more information on SiriusPayroll365, visit our webpage: https://siriusapp.co.uk/apps/siriuspayroll365/