Why cloud-based payroll protects your business resilience
Business preparedness, emergency and continuity are all subjects that most business owners have discussed during their annual strategy days. Fortunately, most have never had to implement these plans – until March 2020.
We all know that COVID-19 pandemic has changed the world of work forever. Homeworking, changes to contracts, government benefits and employee furloughs have all had to be considered and managed.
Perhaps understandably, limitations to our existing HR and payroll have been revealed. Many organisations had to review how they manage their payroll, for the well-being of their teams and their businesses.
Payroll has been tested like never before
Old, complicated, IT systems and ineffective, manual processes have been unable to cope with the ‘new normal’. Inaccurate data and a lack of analytics and visibility have hampered businesses’ ability to make fast decisions at the most critical time.
With often whole workforces based at home, companies have had to urgently manage both the logistical and emotional challenges of keeping teams operational and happy. These issues don’t even take into consideration the potential of higher levels of sickness, leaving many businesses’ shorthanded, at the same time as possibly being over-staffed – it’s often one or the other, but rarely both.
Through all of this, people have still needed to be paid. Often with new, different terms than before as organisations rapidly restructured to maintain resilience.
Payroll management needs to be cloud-based
It has become apparent, very quickly, that the organisations who were able to adapt best to these new challenges were those who had embraced cloud-based working. Their teams were able to work from home more efficiently, and the administrative functions of their business, such as HR and payroll, were able to continue seamlessly.
Businesses that had traditional, in-house infrastructure, hosting internally, have struggled, at a time when certainty of income is all important. Having on-premise systems, tied to physical infrastructure and fixed locations, can create security, scalability and in the event of a pandemic even possibly health risks.
Payroll must change forever – like everything else
The COVID-19 pandemic has forced rapid change to the way we work, collaborate and manage our teams. It has also quickly proven that people can work well from home. Even when the health crisis ends, home working won’t, which means that innovations to our HR policies and processes, including payroll will continue to be a worthwhile and valuable investment.
If you would like to discuss how Offshore Payroll could help your business, please email info@offshorepayroll.com to arrange a chat.
September 18, 2024
Related articles
Combined Employer Return (CER) and changes to the 8 hour rule
From January 2022, the Jersey 8 hour rule will be replaced with a financial limit. This limit will be equivalent to 8 hours at the minimum wage that is in place at the start of the year.
For weekly paid employees there will be a weekly threshold based on 8 hours per week at the minimum wage. The employer will need to determine, each week, if the employee has reached that threshold and deduct contributions accordingly.
It is possible that an employee may exceed the threshold in some weeks during a month and not others. The Combined Employer Return (due January 2022) will require the earnings for the entire month to be declared for tax purposes but for contributions purposes only the earnings for the weeks where contributions have been deducted should be reported.
For monthly paid employees earnings will only need to be declared for social security purposes where the monthly threshold is reached.
December labour market report published by Statistics Jersey
Statistics Jersey have today published the December 2020 Labour Market report. Jersey’s labour market report is published every six months and covers key aspects of the job market for both the private and public sector.
In December 2020:
-
the total number of jobs was 60,000. There was an annual decrease of 1,380 jobs (2.2%) since December 2019, the largest December decrease since at least 1998
-
there were 51,470 jobs in the private sector. This was an annual decrease of 1,790 jobs (3.4%), its largest recorded decrease in December
-
there were 8,530 jobs in the public sector. This was an annual increase of 400 jobs (4.9%)
At a sectoral level:
-
seven sectors saw annual decreases in jobs; the largest decrease was of 1,040 jobs in hotels, restaurants and bars, which was the second-largest change recorded in any sector to date (with the largest being the annual decrease of 1,700 recorded by this sector in June 2020)
-
the annual increase of 400 jobs in the public sector was driven by an increase of 330 in the number of Government of Jersey (GOJ) core employees (permanent and fixed term employees), which includes staff employed in response to the COVID-19 pandemic
Source: Government Jersey website (December Labour Market Report Published (gov.je))
Embracing Modern Payroll Technology
In today’s fast-paced business environment, getting payroll right isn’t just a matter of paying employees on time – it’s about maintaining trust, boosting productivity, and creating a workplace where things run smoothly. Payroll errors, often underestimated, can turn what should be a straightforward task into a frustrating experience for both employees and business owners.
The good news? With the right tools, payroll can go from a headache to a highlight! Believe it or not, payroll errors are more common than we think. In fact, nearly 9 out of 10 UK businesses faced payroll issues in 2022. These mistakes, whether small or significant, usually lead to late or incorrect payments. The ripple effect of such errors can be felt throughout the entire organisation, leading to unhappy employees, unnecessary stress, and time wasted on troubleshooting.
According to Personnel Today, some companies are spending more than 12 hours a month fixing payroll mistakes – valuable time that could be better spent growing the business. But there’s no need to get bogged down by these numbers. The solution is simpler than ever: modern payroll technology. True Cloud-based payroll systems, like Offshore Payroll, are transforming how businesses handle payroll, making it a seamless, efficient process.
Many companies recognise that upgrading their payroll system can significantly reduce errors and save time but concerns about cost and implementation can often cause hesitation. Offshore Payroll is here to change that perception. We believe that powerful, intuitive payroll software should be accessible to all businesses, regardless of size and without the stress or high expense. Our smart import tools make transferring payroll data and initial set up a breeze, and our dedicated relationship managers guide you every step of the way.
Once you make the switch, you’ll wonder why you didn’t do it sooner. No more hours wasted on fixing errors – just more time to focus on what truly matters: growing your business. It’s a smart investment that pays off, leaving both you and your team more satisfied, productive, and ready for the future.
“It has given us peace of mind”
The reporting section is extremely in depth and helpful. We have been using various reports to help create our own management reports which has led us to examine payroll expenditure easily.
Having the widgets to run through step-by-step payroll or adding a new employee ensures nothing is missed. Also, the accessibility due to being Cloud based.
It’s a great system! Easy to use, can be tailored to your specific payroll needs without being overwhelming and if you can’t find something in the extensive user guide then a team of experts is only a click away.
Emma McCaw – Consultant
