Are you an employer, looking to hire payroll professionals?
Here is something important you need to know!
Ever think of a payroll specialist and one of the crucial criteria affecting the reputation of your business. Right from calculating the wages, to insurance premiums, including handling risk errors, costly compliance penalties, a payroll specialist plays a crucial role in an organization.
Hiring a professional ensures all your business’s payroll responsibilities are taken care of- but how do you find out the right candidates and what kind of skills and traits should they possess?
Here is guide for you,
With years of experience in US Taxation and expertise in payroll iLead-FPC training institute in Hyderabad has figured out the essential traits that a recruiter should look for while hiring a payroll professional.
Let’s face it, payroll management is a chore. When was the last time you thanked the people in your organization for the timely transfer of your salary or the accurate calculation of income tax or contributions to the pension fund? Running a payment institution is similar to running an electrical business.
Not a single consumer will thank the energy company for uninterrupted power supply. Even if there is a power outage for a second, you will immediately hear how consumers scold the power company.
The fact that the payroll function is underestimated does not mean that the function is unimportant. Payroll errors can be costly in both monetary and non-monetary terms. Incorrect payroll calculations and delays in the implementation of payroll activities can lead to financial losses, fines from government agencies, qualification tests and employee dissatisfaction.
Payroll today sits at the intersection of human resources, finance and compliance functions in an organization and is increasingly becoming a separate function.
Since personnel costs are the most important item on many organizations’ expense lists, companies hire payroll professionals not only for routine administrative tasks related to payroll and compliance, but also for strategic activities such as compensation planning, rewards planning. and thanks and drawing up estimates and business plans. As a payroll service provider & US Taxation training institute in Hyderabad with some payroll knowledge, we can say with confidence that highly skilled payroll professionals are not available in abundance.
What are the characteristics of a high-end payroll specialist? What should employers look for when hiring candidates for payroll function?
- Analytical Skills
Payroll can be taught, but intelligence cannot. A good payroll professional has an analytical mind and is able to summarize facts, make assumptions, and come to sound conclusions. Whenever we meet with iLead payroll candidates, we evaluate their problem-solving skills.
Pose a few logic/number puzzles and see if the person is enthusiastic about solving them. Check the thoroughness of the person’s approach to the decision, as well as the decision itself.
Even if you have high-quality payroll software, sometimes you still need to do some offline calculations on a quality check spreadsheet. If you can’t count, payroll is not a profession for you. Payroll professionals may need to implement complex business rules established by their organization for payroll.
If they are unable to analyze and think logically, they may misapply these business rules, resulting in incorrect payroll calculations. We encounter many payroll professionals who do not have sufficient knowledge of payroll practices and legislation that governs payroll.
- Knowledge about Statutory Compliance
Unfortunately, many payroll professionals take pay cuts by simply loading some HR data into software and downloading some reports for finance or HR to use. Ask them an elementary question about how and why certain calculations are performed, you will get unconvincing answers. The payroll specialist should have a clear understanding of key legislation such as the Income Tax Law, the Public Finance Law, the ESI Law, the Bonus Payment Law, etc.
- Communication Skills
We cannot overemphasize the importance of communication skills for a payroll specialist. There may be times when payroll personnel, even if they are not very old, may need to explain the calculations to very senior managers, including finance, human resources, and even the CEO, in their organization. A payroll specialist can easily lose credibility in the eyes of other stakeholders if their communication skills are not up to par.
There may also be times when a payroll officer may need to explain statutory deductions to employees whose knowledge of the bylaws may be negligible. Good payroll professionals are never condescending or impatient, but instead show empathy for colleagues seeking their help.
The pursuit of accuracy is key in payroll. Mistakes can also happen if the payroll team uses great payroll software. The payroll process should be designed in such a way that even if errors occur, they are detected before the payroll is completed. Good payroll professionals create comprehensive checklists to verify payroll results and diligently go through the checklist items each month.
The payroll specialist must be prepared to deal with material delays and therefore work to tight deadlines.
- Commitment to Confidentiality
No confidentiality agreements, security systems, security certificates, etc. could help if a payroll specialist is careless about maintaining the data confidentiality.
Have not we all seen emails being sent to the wrong recipients due to using the autocomplete feature in email software or because the sender hit the “reply all” button by mistake?
The payroll professional must treat information about employees and employers with extreme care and ensure that information does not reach unauthorized recipients.
Businesses require operational support staff to process payroll, distribute payroll, prepare returns, and ensure regulatory compliance. Payroll Specialist is one of the best jobs in accounting & finance. What types of skills, credentials, skills and experience do employers look for in today’s payroll professionals in general? If you are in the market for a payroll job, these traits can help you have a better payroll career path.
- Payroll Certifications
The American Payroll Association (APA) offers two types of certifications for payroll professionals: Basic Payroll Certification (FPC) and Certified Payroll Professional (CPP). Designed for entry-level payroll professionals, the FPC program provides a comprehensive introduction to the field. CVT holders are ideal candidates for payroll clerical jobs or other mid-level entry-level positions.
When you aspire to take on more challenging management and payroll roles, CPP can help you stand out. This advanced certification requires prior experience in the field and a solid understanding of key concepts such as labor taxes, employee benefits, and the Fair Labor Standards Act (FLSA). At iLead we offer Fundamental Payroll Certification training courses online along with the placement support.
CPP holders also demonstrated their knowledge of payroll, payroll management systems and payroll administration.
- Payroll Software
Most payroll platforms are complex. There can be many variations from one system to another, and skills are not always transferable. For example, a payroll specialist who has extensive experience using ADP Workforce Now for payroll will not be able to seamlessly transition to Kronos Workforce Ready without training.
The good news for those looking for payroll jobs is that the market for hiring payroll professionals is very competitive right now. Therefore, many employers are willing to hire and train candidates who have not worked with their company’s dedicated payroll platform but demonstrate the ability to quickly learn new software.
Other Software Skills
In addition to their knowledge of payroll software, most employers are looking for candidates who have experience using Microsoft Office software, especially programs such as Excel, Word, and Outlook.
Some payroll experts’ roles overlap with accounting, especially in small businesses, so experience with QuickBooks or Quicken is also an asset. And, of course, since many financial statements and payment processing have been moved online, you should feel comfortable working with cloud applications.
In addition, the ability to use telecommuting and collaboration tools, such as video conferencing, as needed in the course of daily work is a must. Even if you don’t work remotely, many of your colleagues may be remote or hybrid workers.
This is why many employers want to hire people who understand the rules and know how to put them into practice. So, during the interview phase of a payroll job, be prepared to answer compliance questions and demonstrate your familiarity with the relevant rules and regulations. Payroll employees, whether a first-level employee or a payroll administrator, cannot afford to make mistakes in their work.
The above mentioned are some essential criteria to look for while hiring a payroll specialist.
So choose wisely when you are hiring payroll professionals, and you don’t need to go through the process alone. iLead offers a simpler and professional Payroll and QuickBooks Keeping services to manage your payroll and other tax compliances.
For any queries, speak with our payroll specialists and tax experts!