End of Financial Year (EFOY) is upon most of us and your business is likely now working on preparing tax filing. This time can be a stressful and busy time for those responsible. Working through your year of statements, checking exemptions, making certain to following existing and new rulings, etc. For Human Resource and Finance departments, it includes covering the companies’ responsibilities to their employees.
For some nations under their tax systems, an employee simply logs into their personal tax account and verifies the income data his employer sent to the government in advance. The employee reviews contact information; check for tax exemption or incentive they’re entitled too, clicks a box to claim a tax refund (if applicable), or set up tax payment instruction directly to their bank account. Voilà. Taxes are done, in less time than 10 minutes.
The mechanism behind this, personal income information is fed from the company to the government instead of the individual. So, those whose income is derived from a single employer would be able to file their taxes in a few minutes. However, the human resource and finance of these firms would have to sort the data accordingly.
They would have to work through income the employees derived as commission, over-time, awards or a benefit. Each is treated differently. They could start this tax preparation early. What if, over-time, commission or rewards calculation in the field or at the work-site is not regular? For some organization, it varies from month to month and based on different pay rules for different staff due to a different type of contracts offered. There could be thousands of such arrangements for some organizations. This is especially true for the service and professional sectors.
Going through the records by the human resource the finance can be tedious, copious and time-consuming. It is probably easy to have errors, which can be financially costly, in the case of overpaying; or staff morale may be affected in the case of underpaying.
An attendance and payroll rules integration system would make over-time payroll calculations easier and taxable income inclusion easier. A software solution such as Workforce Optimizer can help you to save payroll processing time and significantly reduce the risk of costly payroll errors. Cost savings estimation from reducing payroll expenses by 2-4% through reduced overtime expenses, staffing overcapacity and payroll errors.
In addition, the manager’s productivity is improved with reduced time spent on managing the workforce. The time reduction is about 70-80%. Staff productivity also improved as a result of transparency in their rewards to contribution. Time, attendance recording, and additional work pay calculation are all automated. Together these advantages lead to operational excellence and consistent customer experience across the enterprise, leading to a rapid payback.
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