It’s no secret that small businesses may struggle with payroll handling. Numerous duties must be completed when running a small firm in order to efficiently manage a workforce.
In fact, a survey found that up to 45% of smaller companies cited avoiding errors as a factor in their decision to outsource payroll.
But what exactly does payroll outsourcing mean? How would that affect your small business, specifically?
We are here to help you navigate it. Finding a top-notch outsourcing solution can make payroll management simpler and make mistakes less likely.
About The Client
One of the leading companies in the telecom sector, our client has operations in more than 60 countries and employs 3,000 people. Payroll implementation for such a customer was both a privilege and a significant challenge for the team.
Major Challenges
The client had two work locations. One was the domestic market, which was the American market, and the other was the international market.
For the home market, the client was prepared to deploy In-House Payroll in Oracle, however, for their global clientele, they preferred to stick with their old payroll contractors, which varied by country. For the customer, we were putting the global base into place.
It was necessary to use a different technology for each integration we had from Oracle to that country-specific payroll vendor because the international base consisted of 60 countries and there were different payroll vendors for each of them.
This was done so that they could process the data we sent them and pay the employees the right amount that they were entitled to. To deliver the data to each of these providers, we used a unique file format with a unique layout and support for several communication channels.
Our approach
As a result of considering the requirements, we ultimately decided on the strategy of developing unique extracts for each nation that adhered to the same format and were easy for that country’s payroll vendor to understand and use to make the necessary payments.
Only the updated data for a payroll period was submitted to the payroll provider after all extracts had been changed. The newly delivered files were in XML, CSV, or Excel format and were sent in accordance with the payroll vendor’s specific document type.
The well-known payroll service providers were TMF, ADP Streamline, Bottino, Ascent, etc. Through email bursting or the use of FTP, specialized connectors between the Oracle system and the payroll vendor system were made.
The possibility of a data breach in these integrations exists since a hacker might potentially eavesdrop on the network and access the private data. We employed end-to-end PGP encryption with our private key and the vendor’s public key to thwart this assault.
We intended to extract files from both the legacy system and the Oracle system for use in parallel runs and reconciliation.
We then planned to compare the differences between the two files by running the legacy extract through the payroll vendor’s production environment and the Oracle extract through the payroll vendor’s test environment.
The payroll managers of each country were given data roles that limited their access to that country’s data and prevented them from seeing information from other nations.
As a result, the reports that each payroll manager ran only included information specific to the country for which they were responsible.
The Impact
We were able to fully eliminate the client’s Excel-based system by applying our strategy. The payroll manager was able to send the information for each employee to the payroll vendor by simply running a few simple operations.
We were able to prevent any security breach that might have occurred in the past and create a seamless connection between the Oracle system and the server of the payroll vendor, which wasn’t there before.
Additionally, the data visibility was limited by the use of payroll manager roles that were specific to each nation, allowing the payroll manager of a given nation to only view data for the employees who work there rather than all the employees from other nations.
10 Payroll Tips You Should Know
1. Choose whether to pay your employees an hourly wage or a salary.
2. Select the payment schedule for your staff.
3. Sort the personnel you have.
4. Decide which program best suits your company’s requirements.
5. To save time and money, simplify your method.
6. Automate both federal and state taxes.
7. Take raises and benefits into account.
8. Find out if you require employer identification numbers.
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