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    4 Most Common Challenges of Payroll Processing

    December 23, 2020

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    Payroll processing can be a complicated process which requires constant monitoring to ensure a financial flow that is without errors. But whether you are implementing payroll for the first time or looking to introduce a new standardised process to your existing processes, the result will be worth it. 

    The flip side to this is that you can encounter a few challenges in the initial stages of adopting a new process. Another aspect that remains common amongst these challenges is that the start of any new payroll initiative in your organisation begins with first analysing your existing operational processes to know how they are performing. Although hurdles to overcome could be different for different organisations, the four biggest challenges listed below tend to be common for all. 

    The need to stay statutory compliant

    An absolute must and also a challenge that is almost always on top of every HR’s mind - is the organisation up to date with all the statutory compliances? Non-adherence to the statutory laws leads to levying of heavy fines on the organisation. 

    Dependence on inputs from multiple systems

    Ask any HR and they will agree to the massive pain involved in gathering all the necessary inputs like attendance, leaves, reimbursements, overtime, etc. With this data scattered across systems and teams, payroll often suffers loss of data, inaccuracies in processing, and a lot of back and forth. 

    Chances of making errors

    In the absence of an intelligent payroll system, most HRs resort to using excel sheets that may seem deceptively simple but are fraught with dangers if handled inexpertly. Even a simple error in processing salaries often brings down the trust and morale of the employees significantly.

    Lack of effective data management and reporting

    Traditionally, the flow of data between various facets of HR vis-a-vis payroll have not been smooth and seamless. There are often delays in data transmission, which is inaccurate or outdated. Similarly, the inability to pull up accurate reports at the right time renders any analysis futile leaving the leadership blind to gaps in what is the biggest cost to the company. 


    Even as you are faced with these challenges, Darwinbox is here to help. Solution, you ask? A cloud-based, well integrated payroll software that mitigates all the above challenges and more. Let’s take a look at our guide that will help you select the best payroll software for your organisation.

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