If you work with payroll and/or HR, you are certainly familiar with HR systems. But have you thought about whether or not it is an advantage to have both payroll and HR in the same system? We have. And we believe that having them in the same system will give you clear benefits. So let us tell you more about the what and the why.
Register information - once
When you choose a solution that has payroll and HR in one and the same system, you only need to register information once.
This way, you will save time (because double registration is actually time-consuming) and you will reduce errors (because manual errors do happen). You will simply work both easier and faster.
And if you have not entered the address of an employee in your HR system, you will get an error when you run payroll. This must be updated. If you have payroll and HR in the same system, you can validate that the HR data is correct, so you don't have to worry about that.
There is nothing called that in approx payroll
Let's say you have an employee who starts on January 1. In 2022, this would effectively mean that the first day of work would be January 2nd, as January 1st (for most people) is a day off. If you use January 2nd as the employee date, this will (probably) work just fine in your HR system, but in payroll it could cause challenges. Partial payments will be incorrect, information for the A-melding will be incorrect, pension reporting will be incorrect, and you will simply end up with different information in your two systems.
But does it matter then?
Yes. It does.
payroll as a starting point for HR processes
Let's say you are considering giving an employee a salary promotion. If you have payroll in one system and HR in another system, it is not certain that the salary you use as a starting point is up to date. We are sure that the salary registered in the payroll system is correct, but are you sure that the salary you are using in the HR system is up to date? If payroll and HR are in the same system, you can be absolutely sure that this is correct, because you use payroll to wash HR data. This way payroll is up to date and will always be the correct input in your HR processes.
Surprise…
On several occasions, we have witnessedHR being surprised when washing their data against payroll. They have thought they had good control and good data, but when the HR data has been checked against payroll , major discrepancies have emerged. And it just so happens that the data from payroll is correct, because it can't be wrong.
Having payroll and HR in the same system ensures that HR is exactly (and embarrassingly) correct. Data relevant to HR will be 100% correct!
Fixed additions
Another example of the advantage of having payroll and HR in the same system is fixed allowances. In a HR system, you should have an overview of who has which fixed supplements, while in payroll you should pay them out. If you have everything in one and the same system, you have full control - at all times.
And have you thought about this with retirement?
Pensions are not always just defined contribution pensions. There are many companies out there (maybe yours?) that have closed defined benefit pensions, or supplementary pensions in some form. This needs to be well documented in your payroll system, but if you don't have the right information from HR, you could be in trouble.
Marita Johansen
Consultant Manager
The list of reasons why it is beneficial to have payroll and HR together is long. If you want to know more, you are more than welcome to contact us.
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