flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

Features Your Business’ Payroll System Needs to Have in 2021

Editor's Note: Take a look at our featured best practice, McKinsey Talent-to-Value Framework (230-slide PowerPoint presentation). Curated by McKinsey-trained Executives Unlocking Business Excellence: The McKinsey Talent-to-Value Framework Toolkit In the dynamic world of modern business, staying ahead of the competition means maximizing the potential of your most critical asset – your people. The **McKinsey [read more]

Also, if you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy's Human Resource Management (HRM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

If you own a business, making use of an efficient and effective payroll system is always critical. However, as 2020 has proven, it may be more important than ever given the way businesses have had to adapt to the COVID-19 pandemic.

Thus, with 2021 well under way, you should set aside time to ensure your payroll system and software offer certain essential features and capabilities. Specifically, in 2021, your payroll system should include the following:

Convenient Time-tracking

Many businesses were suddenly forced to allow employees to work from home when the pandemic struck. Business owners across a range of industries report an intention to continue doing so even when it becomes possible to return to the office. Studies indicate allowing employees to work remotely does not have a negative impact on productivity in most cases. Additionally, reducing the need for substantial office space can help a business save money in the long run.

That said, depending on your pre-COVID-19 policies, allowing employees to work from home may have impacted the way you track how much time hourly employees actually spend working on their various projects. Having a payroll processing system with convenient and intuitive time-tracking features may therefore be essential if you plan on continuing with a remote work or hybrid model.

Accurate Reporting

Although the deadline to apply for Paycheck Protection Program loans was March 31 this year, because the deadline has been changed and extended several times, you may be able to continue seeking PPP loans in the future. Similar aid and relief options might also be available in the coming months.

These loans typically come with stipulations regarding how business owners may use the funds. In some instances, as is the case with PPP loans, business owners can qualify for loan forgiveness by proving they used the funds according to the limitations placed on them.

Specifically, they typically have to prove they genuinely spent a certain percentage of the funds on payroll. If you’re ever in a position to qualify for loan forgiveness, you’ll want to be sure your payroll system’s reporting is accurate, otherwise those involved in deciding whether you qualify may feel you haven’t provided sufficient proof you used the funds appropriately.

Expense Management

The importance of expense management features ties in with the importance of accurate reporting. With the passing of the recent COVID-19 relief bill, some business owners can now apply for grants that are similar to PPP loans, but allow them to use the funds for a wider range of operational expenses.

Depending on how you run your company, you may permit some employees to essentially use these funds on your behalf, as long as they are using them for the proper expenses. They may not be using them directly, but you could use the funds to reimburse employees for qualifying expenses and purchases. 

Regardless, if employees are sometimes handling such tasks, you’ll benefit greatly from working with a payroll system that boasts extensive and accurate expense management features. You need to be able to track expenses, automate reimbursements, pay employees efficiently, and simplify the approvals process if you trust your employees to make wise decisions when deciding what can and can’t be expensed.

Remember, even when a pandemic hasn’t impacted a business, everything from tax law changes to business growth can affect how you need to approach payroll. You should thus make a point of reviewing your payroll system every year to determine whether improvements need to be made.

18-page Word document
Human Resource Strategy Creating Business Strategy With Human Capital 1. What Is A HR Strategy? 2. How Connected Are HR and Business Strategy? 3. 6 Steps to Craft Your HR Strategy 4. Three Tests of Best HR Strategy 5. Goals and incentives should be aligned with execution of the [read more]

Want to Achieve Excellence in Human Resource Management (HRM)?

Gain the knowledge and develop the expertise to become an expert in Human Resource Management (HRM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

Learn about our Human Resource Management (HRM) Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources


Excel workbook
This tool has been developed using Microsoft Excel. 1. This document consists of five tabs: Validations, Database, Dashboard, Monthly Comparison, and Department Comparison. 2. Begin by inputting your employees' information into the database sheet . 3. You can add records for the number of [read more]


 
26-slide PowerPoint presentation
 
 
95-slide PowerPoint presentation

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.


Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  

The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.
  


About Flevy
Management Topics
FlevyPro (Subscription Service)
FlevyPro Streams (Bundles)
Flevy Executive Learning (FEL)
KPI Library
Marcus (AI-Powered Consultant)
PowerPoint Services
Partner Program
LinkedIn Influencer Marketing
Flevy Tools (Free PowerPoint Plugin)
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com


CONNECT WITH US!

       
FLEVY MARKETPLACE
Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

TOP 100
Strategy & Transformation
Digital Transformation
Operational Excellence
Organization & Change
Financial Models
Consulting Frameworks
PowerPoint Templates
FUNCTIONAL FLEVYPRO
Business Transformation
Change Management
Customer-centric Design (CCD)
Digital Transformation
Human Resource Management

ADDITIONAL RESOURCES
Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Innovation Management
Organizational Culture (OC)
Organizational Design (OD)
Organizational Leadership (OL)
Performance Management


KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence
Product Strategy

Process Improvement
Post-merger Integration (PMI)
Strategy Development
Supply Chain Management (SCM)
Value Creation


Small Business Owner
Startup Resources
Strategic Plan Template
Strategic Planning
Strategic Planning Process
Value Innovation Strategy


© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.