Whenever SMEs in UAE make a decision in taking on employees. There’s always the issue of logistics that need to be resolved. Among them is payroll processing. Although managing payroll can seem like a rather simple and easy administrative task, by the time that it is put into practice, majority of small businesses and HR managers discover several bumps which may be very expensive and costly if not handled well.
In this article, we’ll provide you with some of the best ways for you to ensure that you handle your company payroll correctly. Read on!
Best ways to handle your company payroll correctly
Learn about the UAE payroll and labor laws
If there is one thing that you need to know about UAE. It is the fact that government authorities have strict laws on payroll and employment. There are a number of regulations which you have to adhere to if you don’t want your company to accumulate fines and penalties from violations. There are also mandatory deductions which have to be made starting with healthcare insurance, a necessity for all employees. To ensure that your business is fully in compliance to all relevant policies and changes made to them, seek the guidance of payroll specialists in UAE.
Take your time in finding the most reliable partner
Naturally, a way for your business to ensure an accurate processing of payroll is by enlisting the expertise of a payroll specialist. Your partner must have experience navigating the complexities of UAE payroll processes. By having the correct partner on board, your business can move seamlessly. You won’t ever have to wonder whether or not you are making even the slightest payroll mistake!
When you have payroll specialists working and representing on behalf of your company, you’ll be able to focus on core business activities and leave taxation and regulatory issues to a team of experts.
Find more: HOW CAN PAYROLL SERVICES PROVIDER SAVE YOU TIME AND MONEY?
Centralize payroll records
From a payroll and HR perspective, having employee records regularly updated and organized is absolutely critical. However, the historical processes, scrolling through massive amounts of spreadsheets, sifting through stacks and stacks of forms, and manually entering information into several different systems are all not very efficient for payroll professionals. Storing appropriate records of employees in one place instead of in disparate locations is going to both save time as well as reduce risk in losing pertinent information.
You must read: TOP 10 ADVANTAGES OF OUTSOURCING ACCOUNTING AND PAYROLL SERVICES
Create a calendar for payroll
A payroll calendar will help your staff members in understanding when they’ll receive their wages and when their timecards are due. The calendar will also help the specialists you retain when they plan and execute tasks for processing company payroll. With payroll outsourcing in UAE, outsourced specialists will create the payroll calendar for you. However, it is still best to be aware of the crucial guidelines required to follow for creating payroll calendars. Here are they:
- Use colored fonts in emphasizing specific information e.g. early time card submission deadlines that are due to holidays.
- Utilize a regular calendar in helping you analyze certain dates which may require certain lags in allowing enough time to process payroll.
- Give supervisors and managers copies of the payroll calendar for them to distribute to staff members.
A payroll calendar will show the fiscal year’s pay dates. it will simplify processing of payment and reduce confusion among employees regarding on when they’ll be paid and timeframes paychecks are going to cover. As soon as you make a template, save the file on a hard drive in order for you to be able to update it easily as needed.
Observe transparency with the Payroll processing
Problems often come because of misunderstandings of a company’s payroll system. Problems are even more rampant in organizations wherein pay policies aren’t presented adequately or made accessible to the employees. A lot of payroll issues, including employee misclassifications and underpaid hours can be corrected with the instituting of a transparent payroll policy.
Read More: WHAT BUSINESSES IN UAE NEED TO ABOUT EMPLOYEE PAYROLL RECORDS
Transparent payroll policies
Transparent payroll policies should include the following information:
- How payroll processing in the company works
- The process in which salaries of employees are determined
- How employees are being classified for their wages
- Employee reporting responsibilities
- Levels of earnings that are considered ‘vacationable’
- Manner in which promotions, wages, and bonuses are calculated
- Company procedures for managing mistakes in company payroll
Put your payroll policies in writing. Then, display them prominently in the workplace. You need to make sure that each staff member has a copy. Also, update the employee manual or employee handbook accordingly.
Bonus tip: audit the payroll process. This can be with the help of an outsourced payroll professional in UAE from top payroll outsourcing companies in UAE. If you hear occasional complaints regarding payroll computations, then you most definitely need to reach out to payroll specialists that can check your books and make changes to how your business processes its employees’ wages.
To know more, call us here in Payroll Middle East today!