What Is Payroll Data and Why Is It Important?

That said, no financial oyster can be shucked without a successful payroll management system. With that said, how to do payroll smoothly? And successful payroll processing starts with payroll data, ensuring real-time access to financial insights

In short, payroll data consists of reports detailing payroll costs, business structures, and tax liabilities. Payroll data is especially important when your business must comply with country-specific HR codes, helping you manage budgets and cash flow more effectively.

With exceptional payroll data, you can say goodbye to complex payroll management and bonjour to new opportunities that enhance your business decisions.

Who Generates Payroll Data?

Payroll is the purview of your business’s HR department. By aggregating your company’s employee expenses, business costs, and tax liabilities, your HR department can generate detailed reports which help detail the following:

• How many hours your employees worked
• How to reduce errors and cut costs
• Your expected growth rate, aligning with your long term business strategy
• Your required tax reports

These are just a few of the questions payroll information can help answer. For the most comprehensive payroll information, hire a company specializing in payroll management and data collection.

That way, you can relieve your HR department from worrying about overly-complicated international business costs.

Types of Payroll Data

Like French beignets and Brazilian sunshine, you can never have enough payroll data. That said, knowing what payroll data is can help you cut the informational chaff from your financial wheat.

Below, we’ve broken down the two payroll metrics to more fully answer the question what is payroll data? These metrics make the biggest difference to your bottom line.

#1 Employee reports

Employees constitute the largest payroll expense for most businesses. What better way to gauge overall finances and employee productivity than a detailed employee report?

The most useful employee reports contain the following information:

• Salary payments – If you run a small business, you may only have to worry about paying a handful of salaries. But if your business is global, you may have to pay hundreds, if not thousands, of employees. A detailed employee payroll report lets you know individual salary amounts so that you can modify salaries if needed, addressing concerns like the gender pay gap.

• Benefits – If your company provides retirement, medical or dental benefits, you’ll want to keep track of their impact on your monthly payroll costs, including sick leave. High-performing employees may enjoy travel benefits and other perks. An employee report lets you know who is receiving your company’s benefits and at what cost.

• Time reports – Knowing how long your employees were on the clock can be a serious boon to your business. A thorough employee report can give you an inside look at employee productivity relative to revenue. You can also keep track of any overtime payments. That way, you can downsize or upsize as needed, making informed strategic decisions about your workforce.

• Contract and freelance expenses – Although your employees will most likely take up the bulk of your business expenses, you might also have to pay a contingent workforce. In cases where accurate payroll data distinguishes regular employees from freelancers, tracking allocated funds becomes straightforward.
  

When it comes to running a successful business, your employees are front-and-center. Let them know they matter by keeping accurate employee data.

#2 Tax and compliance information

Let’s face it: even if you run a local business, taxes can be more complicated than navigating Charles De Gaulle airport on Bastille Day. Taxes can be even more confusing if your business is international.

Fortunately, payroll data can make understanding tax and compliance information easy as a Sunday in Bordeaux.

Payroll data can specifically itemize the following:

• Payroll liabilities – Payroll liabilities encompass employee wages, benefits, garnishments, and tax information. In addition to providing this information to your employees, you’ll most likely have to provide this information to state and federal governments. Payroll data keeps all this important information in one place, helping you avoid the pain of tax penalties. 

• Loan information – In times of financial uncertainty, government-backed loans such as Paycheck Protection Program (PPP) loans can help your business make payroll. If you need a payroll loan, you’ll be required to submit accurate payroll data. Furthermore, payroll data keeps track of loan payments, making the loan forgiveness application a straightforward process.

In addition to itemizing tax and loan information, payroll data can be a major asset for an employer when it comes to complying with international regulations. The last thing you want is to forget a crucial protocol when setting up your overseas HR.

But with a multinational payroll expert, you don’t have to worry about adhering to country-specific human resources laws. That is because they’ll handle the nuances of the international payroll process so you can get back to what truly matters: expanding your global vision.

Read more about: How to Hire Remote Employees In Other Countries

Playroll: Perfect Payroll Solutions, Limitless Possibilities 

Payroll data is essential for keeping track of your expenses, maintaining legal compliance, and identifying areas to optimise the productivity of your workforce. You're payroll records and payroll documents are also up to date.

Although your automated payroll software is one of the most important aspects of your business, managing it can feel like a full-time commitment. This is especially true if you’re managing payrolls across the globe.

Wouldn’t it be great if there were a way to manage international payrolls simply and efficiently? That way, it wouldn’t be a hassle to send payments to foreign contractors for services. With Playroll, there is.

A platform dedicated to helping you hire global teams, manage cross-border payrolls and comply with international HR regulations, and carry out employer of record services, Playroll gives you the payroll system you need to run your business from Savannah to Shanghai.
Contact us today to see how we can help you meet and exceed your payroll service needs.

Book a demo this week.