Bridge Southeast Asia

The Editors of Bridge

Empowering HR With Managed Payroll

While most are familiar with their Human Resources department, very little is known about their work apart from record-keeping, compliance, processing leaves, and interviewing and hiring (and firing) people.

But HR teams can go beyond typical tasks and step into big-picture roles when they are empowered, thus becoming an integral part of the business. Here are some of the things empowered HR teams can do:

Take Part In Shaping Strategy

HR employees who understand the link between employee experience and business growth and revenue help develop ways forward that reflect the value of people and processes to the organization.

Champion Culture

Great HR teams recognize that they have a strategic platform to build, enforce, defend, and advocate culture that reflects the organization’s mission and values.

Support Or Help Lead Transitions

Insightful HR practitioners are open to strategic adjustments, whether it’s improving daily HR-specific functions or helping in major organizational transitions through change management.

But a quick visit to your HR headquarters may show you a reality that keeps them from taking on these roles: employees are bogged down by endless paperwork and administrative tasks, the costliest and most time-consuming of which is payroll.

A good way to address this would be to consider a managed payroll solution for your organization. You can invest in powerful software for leave and schedule management and accurate timekeeping; go for outsourced payroll, turning over your data to reliable organizations and certified payroll professionals to compute your employees’ salaries; or opt for a combination of both.

The best payroll management system combines powerful technology, expert services, and business intelligence, providing not just the tools that do the job, but also offering credible insights for better decision-making.

Here at Bridge, we offer managed payroll that does end-to-end servicing from timekeeping to payout with PayDay. Whether you choose to go with software, outsourced payroll, or both, we work alongside you to make this HR function stress-free, reducing human error, saving a big chunk of executive time, and increasing productivity and efficiency.

Leave the heavy payroll lifting to us and release your HR team to partner and collaborate with you in pursuing your company’s mission.

If you’d like to know more about a managed payroll solution for your business, we’d love to help you. Send us a message at info@bridgesoutheast.com or visit bridgepayday.ph.

5 Ways to Improve Payroll for Your Organization (PayDay Blog)

When organizations think about saving time and money, improving payroll is a good place to start. A few adjustments in the payroll process can go a long way. Here are 5 ways to improve payroll in your organization:

1. IMPROVE TIMEKEEPING AND ATTENDANCE

Timekeeping and attendance information is the basis for most employees’ payroll. This is why to improve payroll, consolidating attendance information is key. This is where most organizations usually spend the most time on for regular payroll.

To improve attendance consolidation, first, consider improving your method of timekeeping. If you’re still using manual sheets or punch cards to clock in/out of the office, switching to a biometric device may help you eliminate costly hours you’re currently spending on encoding work.

Second, consider whether integration is the next step for you. It may be that you’re already using a biometric device in your organization but still spend much time exporting/converting data so you can use it for payroll computation. In this case, consider getting a full solution that enables you direct integration between your timekeeping devices, and your HR/Payroll software.

2. AUTOMATE LEAVES AND SCHEDULE MANAGEMENT

Capturing employees’ time logs is one thing, but crossmatching that against their schedules, is another.

This is why simply upgrading to an automated timekeeping device is usually not enough especially for organizations with workforces whose schedules change from time to time. Without a system to easily manage employees’ schedules, determining whether a person is late or early, absent or on leave, will be challenging. Moreso will computing deductions, or overtime pay.

Automating your schedule and leaves management not only make crossmatching employees’ logs with their schedules easier, some solutions also help you streamline approvals for attendance-related requests such as overtime, leaves, and schedule changes.

 3. MAXIMIZE DE MINIMIS BENEFITS AND TAX-EXEMPT BONUS CAP

Not as many organizations are aware of or know how to leverage the de minimis and the bonus cap outlined by the BIR. Essentially, what happens is that organizations compute employees’ withholding taxes higher.

Because of this, employees either get lesser take-home pay than what is actually possible or companies shell out more money than they need to in order to achieve greater take-home pay for their employees.

And so to maximize these benefits and the cap for tax-exempt bonuses, organizations can either learn how to do this themselves, or seek the help of professional payroll practitioners (through consultation, or through regular payroll service).

Coins - Improve Payroll

4. STREAMLINE PAYROLL DISBURSEMENT

Sometimes, the challenge for organizations is not the computation of employees’ wages, but the actual disbursement of payroll.

Organizations can improve payroll disbursement by considering cash management solutions offered by their local bank. These solutions typically allow organizations to schedule payroll disbursement and streamline approvals.

Some companies can still take this further by contracting a service provider to also help in the payroll disbursement process, typically by giving them uploader/maker access to their cash management platform—so there is no need to switch to another disbursement method. This helps save companies even more time, so they simply just have to approve transactions they have already reviewed and authorized.

5. GO PAPERLESS TO IMPROVE PAYROLL EXPERIENCE

Printing reports, payslips, and other payroll-related documents take time, money, and lots of effort!

For instance, if you’re still printing payslips and handing them out manually to staff every payout, consider distributing payslips through email (but make sure they’re secured!) or even better through an HRIS system that allows access to electronic payslips.

As for reports and employee documents, some HR solutions already allow you to generate reports on the fly, keep an electronic 201 file, and produce the government statutory documents for electronic filing.

Payroll Management System

When to Invest in a Payroll Management System in the Philippines (PayDay Blog)

Most business owners tend to hire individuals to manually work on admin tasks instead of using integrated software and outsourcing services. This is especially true for startups or small businesses where there’s typically limited resources and a smaller staff to maintain.

However when the business grows, so will staffing concerns. Manual processes, especially with payroll, can be tedious and have a negative impact on overall efficiency and productivity.

This is when organizations need to consider setting in place a payroll management system.

WHAT IS A PAYROLL MANAGEMENT SYSTEM?

A payroll management system is the use of any or a combination of software, hardware, streamlined processes, and payroll services that work seamlessly to help companies make payroll processing (and other payroll-related functions such as timekeeping) faster and more accurate.

That said, getting a payroll management system is much more than just signing up for cloud software or say using a biometrics device. It is implementing an overall system and process, designed specifically for the organization’s needs.

SIGNS THAT YOUR COMPANY SHOULD INVEST IN A PAYROLL MANAGEMENT SYSTEM

In general, organizations must already have a payroll process in place. The question is when these existing processes (manual or aided with existing software) need to be streamlined into a more integrated system. The following signs will help you know that it is time to invest in a payroll management system.

Your business is growing

A manual system for handling administrative tasks is an unsustainable model for startups that are seeing signs of growth and progress. If you see that automating these processes as you grow will save you time, and resources, you might just be right.

Your current systems are incompatible

A payroll management system is a fully integrated system that can handle various data points and perform accurate computations in a fraction of the time it takes to do it manually. For instance, you may have procured a biometric device to make manual encoding a thing of the past, but your current software cannot integrate with the device directly. It may be time to consider a more flexible system for your organization.

You have too many backlogs

If you are spending too much time fixing payroll issues instead of focusing on your business, then you’re not maximising your full capacity. And you might be selling yourself —and your company—short. Don’t let administrative task stop you from looking at the big picture.

Relying on a manual system or outdated process increases the risk of mistakes. These can cost a lot of time, legal fees, and resources to correct. Using the right payroll management system will ensure that you’re on top of compliance requirements on a consistent basis.

Desk - payroll management system

You get too many employee complaints about salary mistakes

Salary concerns are a touchy subject, and employees are understandably sensitive to any mistakes committed while computing their paycheck. Invest in a reliable system to fix these issues, and it can lead to loyal and happy workers who will work hard for you for years to come.

Your current payroll process relies on too much paper

It’s time-consuming and wasteful to continue to use a system that needs too much paper. Cloud computing options allow for 24/7 access to vital information, where reports can be generated in an instant and data updated as soon as new information comes in.

PROS AND CONS OF A PAYROLL MANAGEMENT SYSTEM

Benefits

  • Efficient employee information management
  • Convenient and easy report generation
  • Security Management
  • Accurate salary computation that arrives on time
  • Reduce HR administrative tasks
  • Access to up-to-date compliance regulations

What to think about

While deploying a payroll management system might require time and resources, in general having a payroll management system in place gives far more benefits than the work involved in setting it up and choosing the right one. That said, the benefits are dependent on the successful implementation and transition to a new process.  The following are things to consider when you think it is time for you to explore a payroll management system.

  • Up-front and maintenance costs
  • employee training requirements
  • the time required for installation, setup, and configuration.

A reliable payroll management system is vital to running a successful business. It handles the repetitive, tedious, and time-consuming tasks so that you and your management team can have more time, energy, and resources to focus on activities that will grow your business. There might be upfront and maintenance costs to deal with, but the benefits of automating your company’s payroll system far outweigh these costs.

If you’re interested and would like to know more about when you should invest in a payroll management system for your business, we’d love to help you. Send us a message at info@bridgesoutheast.com.

Regular Holidays and Special Holidays: What’s the difference? (PayDay Blog)

With the number of holidays observed in the Philippines yearly, it’s easy to confuse Regular Holidays and Special Holidays. Here is a quick summary of their difference, plus their effect on payroll computation rules.

REGULAR HOLIDAYS AND SPECIAL HOLIDAYS

In general, Philippine holidays fall into either one of these two categories only:

“Regular Holidays” fall on fixed dates such as Christmas Day, New Year’s Day, and Independence Day. The only regular holidays that change dates each year are National Heroes Day and religious holidays. These are Maundy Thursday, Good Friday, Eid’l Fitr, and Eidul Adha. In sum, Regular Holidays—from its name—are regularly observed annually, typically on fixed dates.

On the other hand, Special Holidays or otherwise also known as “Special Non-working days” have more flexible dates. Congress can enact them, or declared by the President. They may also be declared for specific regions only, such as the ASEAN Summit in 2017 which affects work and class suspensions only in NCR, Bulacan and Pampanga.

HOW TO COMPUTE HOLIDAY PAY

It’s important to note that payroll computation differs between the two, which includes pay rules for hours worked, overtime, and rest day premiums. The Philippines’ Official Gazette has put together below a quick guide about this on their site:

Regular Holidays and Special Holidays Payroll

For the full resource from the Official Gazette, click here.

Of course, there may still be additional rules for organizations to factor in payroll computation. This includes provincial holidays, or special rules affecting companies that observe foreign holidays. BPOs are one example. That said, organizations that are particular about payroll accuracy often use software and engage a professional payroll services provider to take care of this on their behalf.