HOW TO CHOOSE A PAYROLL SYSTEM IN THE MIDDLE EAST
Companies can often overlook the peculiarity and complexity of payroll in the Middle East, which necessitates fundamental knowledge of the regulatory environment affecting payroll, as we see with the recent updates to the UAE labour law. To top that, you must choose a payroll system suited to your business. Choosing a payroll system is like choosing your chief assistant. The payroll process needs to run smoothly so you can get on with what’s important – grow your business. That said, every company has unique requirements, often also differing per region. Fortunately, there are software and teams, like gulfHR, geared to take on complexities specific to Middle East payroll. In fact, it won’t feel like work at all with the right payroll system, on your side.
So how do you choose the best assistant for the job? First, find out more about your prospective magical helper and it’s HR benefits.
What is a payroll system?
Think of a payroll system as your go-to guy, like Batman’s Alfred Pennyworth. It’s like an assistant, but better. A great system will significantly reduce payroll headaches because it skilfully manages the HR function so that you can focus on your business. What’s more, the right payroll system reaches beyond just managing wages. It automates all payroll processes with intuitive software. This includes not only the financial aspect of an employee but also employee benefits, like time off.
Payroll software’s scope
A payroll system’s comprehensive software takes care of the three stages of payroll.
Stage 1: Preparation
The initial stage consists of all pre-payroll activities, like gathering variable payroll data and other inputs, and validating all inputs. The validation process is vital to ensuring everything goes according to company policy. Of course, making sure things run smoothly and according to plan is every boss’s goal.
Stage 2: Payroll Calculation
The actual payroll process comes down to calculating the net pay after all earnings, tax and deductions. Checking and verifying the value accuracy is an important part of this step.
Stage 3: Post Process
The post-payroll process is more complex/challenging/requires more than the other two stages combined. This step includes adhering to statutory compliance (compulsory government fees), payroll accounting, the actual payout, and all important reporting.
Advantages of a payroll system
All in all, payroll can be quite a challenge. Yet, it’s easily manageable in the right hands. Enter the payroll system: it’s the assistant made of dreams. It takes care of everything.
1. Increases Efficiency
In business, few things are as satisfying as when operations run smoothly. HR operation is an area payroll software undoubtedly improves. In fact, a complete payroll system saves time and effort so that employees and employers can focus their energy on the company, not on the admin.
The software enables a well-organized and smooth-running HR process by taking care of payroll. Plus, this righthand guarantees higher accuracy and improved information security too.
2. Meets Regulatory Compliance Every Time
Like a super assistant, a payroll system remembers everything you need for a successful HR function. Through the automated software, you’ll easily:
- Keep correct employee records
- Manage employee compliance in terms of company expenses and document overtime
- Adhere to pension law
- Stay updated on payroll legislation
- Complete real-time filing and electronic deposits – even internationally
With the far-reaching payroll assistant, you’ll be in line with all labour laws in the Middle East. The software also automatically updates the system once new legislation comes into play.
3. Keeps a Candid Audit Trail
As this assistant remembers everything, you’ll have a clear audit trail. This, in turn, maintains your company’s good reputation as it provides support for all transactions. It includes sequentially saving all supporting documents, like invoices and validating purchase orders. This protects companies from fraud, maximizes account accuracy, and gives you a clear view of your company’s financial health.
Picking the best payroll software for your company
So, a right-hand can do a great many things, but you need to find your ideal assistant first. Fortunately, you know your business best. And knowing what you need is the first step to improvement. The next is securing the assisting payroll system to get and keep the ball rolling.
1. Define your requirements
Do you need work time tracking, payroll calculations and to facilitate your companies specific processes? Or are these things you prefer to do manually? If you know the scope of work required, it’ll be much easier to find the best software and system for the job. All this information will narrow down the options, so you’ll find the perfect fit.
2. Do your research
Get to know the different Middle East payroll systems before picking one. There are a few to choose from and each differs slightly in its service offering depending on the scale of the business. A small startup, for instance, will have different needs to that of a big corporation. This could mean the two are better suited with different payroll software. That said, superior and far-reaching systems, like gulfHR, cater to Startups, Bluechips, and Fortune 500 alike.
3. Book a Demo
Put your prospective sidekick to test before making commitments. Most Middle East payroll service providers offer a demo run for free or at a reduced cost. It’s vital to try it to see if the benefits will work for your business.
Find out if gulfHR is the payroll sidekick assistant you’ve been dreaming of – book a demo today!
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