Top 7 payroll issues for the pharmaceutical industryadmin
For any industry, Payroll processing services are essential. The pharmaceutical industry in India is facing multiple issues when it comes to payroll. For any business organization, payroll is a very strategic function that requires careful attention and good skills.
Some of the major issues faced by the pharmaceutical industry, as far as payroll is concerned:
- Issues related to Non – Compliance
This may be classified as one of the most significant errors across all major industries. Every country has its own set of guidelines to be followed for payroll compliances. Whenever a company fails to accomplish these compliances, it becomes liable for prosecution. Many of the time, it is human calculation errors that lead to non-compliance.
- Ever-Increasing Costs
Payroll systems help to reduce the costs and maintain the budget in a company. Many a time, the technology used by the pharmaceutical companies is just so outdated, and this escalates the cost of operation in a company.
- Issues related to taxation
Taxation matters in India are often a complicated matter. For payroll processing services, dealing with taxation is often a complex matter. The failure of an organization to stay updated with the latest changes may lead to serious payroll errors. Usually, in a Pharmaceutical company, the tax environment fluctuations are overlooked.
- Managing Data
Employee payroll systems often find managing data a very challenging task. Accuracy in data is a very important aspect of payroll processing. The HR team needs to dispatch the right salaries at the right time. Making errors too often will lead to reduced trust in an organization. Old data must be calibrated with the new one. Accuracy in calibration helps in workflows like appraisals, promotions, bonuses, etc.
- Data Security
According to various studies, 27% of businesses face payroll fraud. This happens mainly due to the poor security of employee data. Almost every organization holds personally identified information about its employees, and this kind of information is quite valuable. If stolen, it can cause a lot of harm to the employees as well as the organization.
- Tracking Employee Absence
Manually tracking employees’ vacation and sick days has the potential for mistakes. Paper time cards or even the simple digital timesheets can be misused and are prone to unintended errors. Tracking every employee correctly is very important to avoid errors in payroll. Having an efficient and even digital timekeeping system is very advisable. This type of system can eliminate all the tracking and time card problems for the payroll management process.
- Incompatible Software
Not every payroll software program is compatible. A good example is that the program used for employee profiles or records differs from the system that you may use for pay and benefits. It is necessary to have a program that can integrate all these functions, and streamline the overall process, reduce the time required for tracking data and ultimately allow the entire department to become efficient and cost-effective.
Outsourcing payroll processing services are the best solution for payroll issues in a pharmaceutical company. This guarantees not only accuracy but also controls cost quite effectively. Payroll in a Pharmaceutical company is an added hectic task that you should try to get rid of. This will allow the management to focus more on other important core activities such as employee growth and company goals.