Deciphering the Difficulties Linked with Payroll Management

Payroll processing in the HR process is one of the crucial attributes that can have a deep impact on your employees and organisations as well. When the process is completed without issues, it increases your people’s trust in the organisation.

Every organisation looks for ways to manage payroll simply and accurately. However, there are some challenges that businesses of all sizes face during the payroll process. We understand that completely and have developed tips for handling such issues. Continue reading to identify the challenges and check whether our suggestions can help you.

Table of Contents

  • 1. Errors
  • 2. Data Protection
  • 3. Using numerous systems to handle employee data
  • 4. Compliance
  • 5. Choosing DigiSME as your Payroll Software
  • 6. Payrun Settings
  • 7. Allowances and Deductions
  • 8. Manual salary adjustment
  • 9. Diverse Reports
  • 10. Wrapping up


When companies use manual processes, mistakes are inevitable. It is challenging to carefully calculate various mathematical variables, including gross pay, allowances, deductions, tax, etc.

Whether a company size is small, or large, manual management of leave and attendance data can lead to errors. This issue may seem minor, but it can cause significant problems like loss in the company’s revenue, disruption to brand reputation and, most importantly, the trust of your employees.


Firstly, you can streamline leave management and attendance management with a good HRMS. Also, you should never ignore wage calculations based on the payroll laws in your region. Tax rates keep fluctuating, so investing in a compliance-free payroll system would be better.

Data Protection

Payroll is all about handling sensitive data that should be protected at any cost. As an employer, selecting payroll systems with high data security is your responsibility. Ignoring data protection can result in data breaches, and employees’ highly confidential data will be in the wrong hands. The consequences of data theft are even worse as companies have to spend a long time finding the hackers and investigating the case.


Go for highly secure payroll software available in the market. Physical documentation of confidential data should be completely ignored. Since your employees will be new to this, employers should be ready to offer training for managing financial data.

Using numerous systems to handle employee data

When it comes to payroll management, you will be integrating a lot of information. Payslip generation requires the name of an employee, no of. Days worked/absent, working hours, overtime and deductions. Using different systems to manage attendance and other details will complicate the process.


Choose a system that integrates all the modules. All your employee information under a single dashboard will speed up the process and enhance productivity. Your HR team can gather the monthly working hours and leaves to link to the payroll for effortless calculation.


Local regions may update payroll and labour laws every now and then. Organisations struggle to keep themselves in the loop. Companies that work across boundaries find it difficult as the laws differ in regions.


Experts suggest employers have a list of laws in a specific region and keep looking for updates every three months. Push HR teams to go through regional payroll magazines regularly. Search for payroll software that automatically updates the laws and does all the heavy lifting for you.

Choosing DigiSME as your Payroll Software

DigiSME payroll module has numerous features that are necessary for smooth payroll operations.

Payrun Settings

Payrun Settings allows employers to set the number of working days in a week. By default, many Payrun groups have been created, but the system lets you customise the number of work days in a week, salary payout time (weekly/monthly/fortnightly)

Allowances and Deductions

From income tax to transport allowances and KiwiSaver, there will be default categories. However, you can also generate new contributions as per the organisation’s requirements.

Manual salary adjustment

DigiSME’s payroll module lets users modify any salary adjustments manually. Even if there are any last-minute corrections, you can make them swiftly.

Diverse Reports

Payroll data management is quite complex but important. The insightful reports will help organisations in many ways, like increasing their revenue and understanding how employees are paid every month. With the DigiSME module, you can access the yearly summary reports, individual-wise yearly summary reports, and company-wise yearly summary reports.

Wrapping up

No matter what, payroll management is delicate and should be handled carefully. Choose the right software to avoid such costly challenges that can deteriorate your reputation and relationship with employees. Automate payroll processing with DigiSME and keep the stress out of “payroll”.