Keeping up with the tax updates in HRMS/Payroll systems

Human Resource Management System is a software tool that helps businesses manage their workforce’s records, payrolls, incentives, and benefits. HRMS prepares tax returns, complies with tax updates, and tracks employee incomes to deductions and allowances. Every transaction has an element of tax attached to it, and the HRMS assists in preventing mistakes that can result in tax underpayment or overpayment.

Direct tax compliance and complications

Any taxation bracket applied directly to your employees and business transactions, like income and goods tax, comes under direct taxes. Two strategies are used to process the data that falls in this bucket:

Data sensitization

Data sensitization is about protecting sensitive tax information from unauthorized users, access, or disclosure. Sensitization includes rolling out policies and cadences on how much your employees expose critical data to the public without intending it. Encryption, monitoring, and auditing are reliable measures for handling sensitive data. These measures help mitigate the risks of damaging your company’s reputation and directly impacting your finances.

Tax reforms

Ensure your calculation systems can match the proper taxes from paychecks around the tax reforms and updates rolled out in each iteration. New versions can have a fresh set of tax benefits, minor changes in the slab rates, or exemptions. The HRMS needs a collaborative approach from the HR, and IT teams to keep the system compliant and practical. New employees are recruited around the year, but the taxes are filled only at the end of the fiscal year. Provide the context of the employee’s payment history and track the amount allocated to avoid disparities between the two salaries withdrawn.

Payrolls and tax forms- W2, 1049, and F941

Configuring and updating your payrolls requires you to keep up with the latest updates in each tax form your employees are responsible for filling. A W2 Form is a tax form that reports an employee’s wages and taxes withheld in a fiscal year in the US Payroll. Likewise, the 1049 tax form in US Payroll reports interest income earned by a particular employee or a business. Employers use F941 or form 941 in the Canadian Payroll to report federal tax liabilities and taxes withheld from paychecks.

Any changes across the three forms will need a revamped calculation of tax algorithms, changes in employee information, and updating new information in the new fields introduced through the update. By providing US and Canadian expertise during ERP updates, CI Global helps you address concerns and provide the information the end user needs to understand and comply with the changes.

Effective tax rate and risk minimalization

Regularly reviewing the HRMS calculations helps keep a tab on tracking employee income and compliance with the relevant regulations. Implementing safety nets and safeguards against unauthorized access to tax-sensitive information is key to minimizing risks. Automate the process of preparing tax returns through an HRMS that helps you stay updated with the latest deadlines and other requirements. Work closely with people who can help you through their expertise in creating a seamless tax calculating portal in your ERP.

How can CIG help?

Looking at tax compliance against the race of time? Fret not; CIG brings more than 16 years of experience in the HRMS and Payroll domain within the software development field to your table. Boost your teams’ potential and get the support that helps you deliver your best. Ideate around concepts that will impress your clients with innovative solutions that make a difference. Want to know more? Click here.

Streamlining Businesses with ERP Development

Developing ERPs: Streamlining processes for optimizing businesses

An investment in ERPs comes from a business’s commitment to stabilizing its product and focusing on the processes. As more companies invest in integrating a solution that covers a broader range of functions that a business does. They can include internal team functions like HRM and a UI that brings multiple moving parts to a single database. The ERP makes managing workflows easier and day-to-day management easier for the business. It is a tool that suits various management cycles: product lifecycle, supply chain, supplier relation, and customer relationship.

Introduction to ERP Development

Developing an ERP is integral to filling the gap between what the ERP provides and what the business needs. For example, the ERPs are limited in providing ease of use when generating custom reports as a programmer is required to trigger the notification. Through a development process, you can take an approach that gives you organized structure and makes it deliver the reports with a matter of clicks.

ERPs provide only real-time analytics on what’s happening within the system. The lack of a database channel that stores the necessary information about what worked and provided the context for each design will be hugely detrimental to the business. Knowing what happened in the past in numbers will allow the decisions to be driven by a gut feeling instead of having a solid, proven thesis and numbers to back the theory proposed.

ERP Development- Why do you need it?

In ERPs today, product development and tailored solutions are the need of the hour. To meet the business’s specific requirements, it needs to be custom-made for your data flows. From the attributes of your organization to providing flexibility to all the stakeholders in the enterprise, a custom solution helps you avoid roadblocks.

Process standardization

When ERP vendors pre-configure industry-specific practices that standardize their business processes, the intention is to improve efficiency. The processes across departments can be standardized, covering offices in distant locations too. Depending on the business, there are unique ways in which transactions can be made. And that is where pushback comes from using a solution made right out of the box. Most businesses can benefit from standardization without negatively impacting their goals. Balancing the standardization of processes with effective change management helps transition employees to get the best out of the ERP system.

Cross-department communication

Management requires data about the other departments they are not involved in. While working independently, the need for seamless communication within each department is only rising. Without clarity and visibility, there is a high chance of miscommunication when data is pulled and submitted instead of automating this process. ERP serves as the core data’s central repository, allowing users to locate, retrieve and store the information they need. A well-customized ERP can pool information in real-time while giving access to the most relevant data and providing the context for each data point.

How to develop customization in an ERP?

Follow a phased approach and understand the business model to get the best out of an ERP system. The deeper the understanding of your intentions for an ERP development project, the better the result will be. A rough outline to follow when developing an ERP is as follows:

  1. Define the end goal after the customization
  2. Break down the basic functionality; understand the wireframes
  3. Decide the design language and create the first wireframes
  4. Choose the technology to develop with: Choose the suitable base ERP
  5. Integrate purpose-based modules and plan for the next module

ERP: Success vs. Failure

A successful development project involves dedicated purpose-based models used by stakeholders across the organization, depending on who requires it. When companies are shooting in the dark to land on a successful project, they risk being too vague in defending what they want their end goal to be. The distance between the executive team’s vision and the project team’s alignment will prove detrimental to the success of the ERP.

Why an iterative approach beats a holistic solution in ERPs

The phased-out manner in developing the ERP and integrating parts in terms of layers instead of creating a forced fit situation. This approach helps prevent errors and missed requirements from either team involved in the preliminary discussion, as they may only be caught once the corrections prove too costly. ERP projects can involve a lot of detailing and planning even after the project’s first phase is done. With more time at hand, every team can build customizations that make it easier for them to operate on it.

Wireframing and Visualization

Wireframing is the incremental way of getting to the end instead of finding a quick fix that will work in changing your business. By planning the steps of the ERP development process, create a structured wireframe that involves all the key stakeholders and their inputs. Based on what the unique modules should have, you can plan how many resources you’ll need to match the time frame that the business needs.

Product Updates and Race Against Time

An ERP system unifies several disparate systems with the swiss-knife like functionality. It covers a broad range of operations, from progress on enterprise development to payroll management. It allows your staff to access all the tools they need in one centralized system. A unified solution is always preferred by your teams over multiple devices with loosely bound integration.

But how does an ERP work? What role does development play in upgrading your ERP software to the current versions? Why is it essential to develop add-ons for your ERP? And why is it vital for your team to keep your add-ons ERP compliant? Read this blog to know that and beyond.

Why do we need to extend the functionality of an ERP?

An ERP is a business management solution with standard features and a range of elementary functions. However, every business has unique operations and processes that an off-the-shelf ERP cannot offer. Overcoming the limitations of ERP is possible through developing add-ons. An add-on is a feature that is built on top of existing functionality. Some reasons why you should consider add-ons:

What happens in a product update?

A product update is down to an update on every level of the add-on, from keeping up with ERP updates to an OS update that fundamentally changes the data funnel. The base tech of an ERP is updated to keep up with the changing technology, adding new features to the base and removing low-priority and out-of-date features. Any fixes that apply to the ERP will directly impact a feature add-on that you’ve built on top of it, so the team involved in the product update will need a thorough understanding of the .NET infrastructure.

Every add-on is created to serve a unique business purpose, with customization applicable to that business. Add-ons bridge the gap between the requirement and the available ERP without the firm undergoing a complete overhaul.

An up-to-date ERP add-on is a primary yet prominent step to make your operations safer and maintain tech compliance against cyber threats. Especially when the updates are from the OS, security patches can sometimes mean that the data funnel you’ve built for the ERP needs to be remapped along with database reconfiguration. These updates can be triggered by policy changes as well. Such product updates need specific focus as the payroll, operational costs of businesses and trade flows are all connected within the ERP system they adopt.

Why do add-ons need to comply with the ERP update as soon as possible?

An update can cause many ripple effects throughout the funnel from a management perspective; the add-on needs a corresponding update to comply with the new version of the ERP. Often the time given to comply is within two weeks; this halts the development team’s ideas and pushes the priorities into overdrive.

A simple change in the ERP system can directly impact the functionality of the add-on you’ve integrated into it. When compliance is neglected, a snowball effect occurs. Once a series of events continues on the old model without updating the software, your system collapses, and you risk legal actions in extreme cases. For example, in an HRMS update, payroll is affected, and the way your entire workforce gets their salary changes. A fast update on the add-on front must patch the requirement before it spirals out of control.

How does CI Global help your team get there?

Figure better ways out of a tricky situation—CI Global steps in whenever you need the guidance that makes things come alive. With over 25 years of experience in ERP product engineering across various industries, we bring the best solutions to your table. With experiences from compliance to tax updates across multiple industries. CI works around international time zones with a can-do-will-do attitude.
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