According to a 2012 Ceridian HR processes survey, 28 percent of payroll professionals feared they were out of compliance with regulatory and legislated guidelines. When it comes to taxes, the number is even higher: IRS statistics indicate that about 33 percent of employers make payroll errors costing billions of dollars in penalties each year. 

March 2013 Voice Calming compliance concerns with single HCM solutions

According to a 2012 Ceridian HR processes survey, 28 percent of payroll professionals feared they were out of compliance with regulatory and legislated guidelines. When it comes to taxes, the number is even higher: IRS statistics indicate that about 33 percent of employers make payroll errors costing billions of dollars in penalties each year.

28 percent of surveyed payroll professionals fear they are out of compliance with regulatory and legislated guidelines.

The good news is that the risk of these penalties can be mitigated and compliance concerns can be effectively managed without burdening an organization and its staff.

larry_dunivan.jpg“Single human capital management (HCM) solutions help to prevent expensive fines and penalties,” says Larry Dunivan, CIO Ceridian. “By fully automating tax deposits and filing, for example, organizations are able to bypass much of the burden when it comes to these compliance concerns and penalties.”

For organizations looking to improve accuracy, reduce errors and mitigate the risk and stress associated with compliance concerns, a single HCM solution is worth a look. It can take the worry out of these processes and help organizations focus on what they do best.

Not all solutions are created equally

Many HCM solutions offer integrated products that rely on disparate systems working together behind the scenes. “Unfortunately,” says Dunivan, “these disparate systems slow operations, introducing risk for error and resulting in unnecessary costs.” He adds, “In spite of these technologies companies have in place, they’re still fighting to meet payroll deadlines and comply with regulations and tax requirements.”

Manual work-arounds.jpgFor many organizations with “integrated” solutions, it’s not uncommon for multiple staff members to spend an entire day or more balancing and reconciling payroll. In fact, of surveyed professionals in the 2012 Ceridian HR processes survey,

  • 51 percent often run out of time for audits during payroll close
  • 92 percent use manual work-arounds to make their HR processes work

Dunivan says, “These and other obstacles stem mostly from inefficient technology.”

A stronger approach to regulatory compliance

According to a 2012 study by Nucleus Research, organizations using single HCM solutions like Ceridian Dayforce HCM expend less effort managing the payroll process. On average, single solutions recapture more than 80 percent of the time Accounting spends administering and finalizing payroll each pay period.

Because there are no integration challenges to deal with when it comes to single HCM solutions, companies can make adjustments at any point in the pay period, thereby reducing their payroll error rate.

Moreover, a single application for HCM provides real-time visibility across all the vitals of HCM. This reduces costs and mitigates risks by:

  • Anticipating budget overages for labor expenses such as overtime
  • Catching and adjusting discrepancies before payroll processes and posts to the general ledger
  • Eliminating duplicate data entry and reducing the chances of error  
  • Enabling both managers and employees to enjoy deep access to vital information

As legislation, regulatory and compliance guidelines continue to challenge organizations, turning to a trusted partner can be a valuable solution for companies looking to minimize risk and ensure compliance.

For more information:

  • Watch “Value of a Single HCM solution” webinar
  • Learn about Dayforce HCM
  • Read “Single Application for HCM” white paper