Payroll software is critical in the manufacturing industry. With different pay scales, a fluctuating workforce, and varying sets of payroll rules and regulations, it’s challenging for most manufacturing businesses to effectively manage their payroll processes.
However, payroll software that is specifically engineered for the manufacturing industry, like Cougar Mountain Software’s flagship product Denali, can help manage and maintain control of critical payroll processes.
This article identifies four major challenges companies face and provides tips of how to overcome them.
The manufacturing sector often involves unionized labor, so a payroll system must work with labor laws. Union laws state that union dues must be paid, so as an employer, companies must ensure the dues are deducted from employee salaries. Performing these complex calculations requires a sophisticated payroll system that also provides extensive reporting and adjustment capabilities. This ensures withholdings and adjustments are accurate and tracked within the software.
Ensure your company’s payroll system can handle union labor nuances to avoid countless hours of manual processes and error checking.
Managing an extensive workforce and having accurate labor costs is critical for manufacturers. Allocation of labor across multiple projects using multiple labor categories and scales can complicate budgeting and product profitability.
A leading payroll system should be capable of accounting for labor costs against specific projects and for varying labor categories.
Access to Self-Service
Most manufacturing companies have multiple shifts which can make it difficult for some employees to meet with payroll administrators during “normal” business hours. Employee self-service (ESS) access allows your company to give employees access to payroll information like pay slips, hours worked, and benefit balances.
Implement a payroll system that provides all staff with the information they need at their finger tips.
Payroll and Accounting Systems Work Better Together
It is critical that a payroll system work seamlessly with your organization’s accounting system. Information in from a payroll system should automatically feed into your organization’s general ledger and accounts payable. Having your organization’s accounting and payroll systems linked reduces duplicate data entry and minimizes the opportunity for data entry and calculation errors.
Businesses continuously grow when they invest in systems that seamlessly work together in order to improve workflow automation saving time, effort, and reducing errors.
Manufacturers face unique payroll challenges. Using manual processes or complicated Excel spreadsheets to manage payroll puts any business at risk, which could result in fines and penalties. Take the time now to upgrade your system and ensure compliance.
We’d love to hear about some other challenges your company faces with manufacturing payroll. Please leave a comment below.