When you hear the term ‘payroll’, what pops up in your head? “Well… paying salary, keeping track of holidays…” you may say. But to be precise, payroll is defined as a financial list or record of payments that employers have to provide to employees as compensation.

As businesses are going global nowadays, payroll has become an inevitable topic for those who want to expand their scale to an international level. As easy as it might sound, payroll is a redundant yet crucial task that should never be underestimated.

To employees, payroll is protection to their labor rights. At the beginning of every new job, employees are asked to sign a contract that covers all the negotiated payroll-related terms, like salary, bonuses, commissions, awards, annual leaves, etc. By signing the contract, it is a safeguard to both the company and the employees that these terms are to be agreed upon and regarded.

As to employers, not only are the payroll records vital to the firm for financial and operational reasons, but it is also a contractual obligation for them to avoid penalties from violating a certain country’s labor policies and regulations. Take Hong Kong as an example, if the employers delay the compensation for just a week, their employees already have the right to file a complaint to related government bodies.

However, a more compelling reason for employers to comply with a sustainable and accurate payroll is employee morale! No employee would ever want to work for a nonpromising company, right? Here’s when payroll plays its magic — by adopting a transparent and automated payroll software system, employees are given easy access to their own payroll data. Not to mention, punctual compensation can be ensured along with reasonable chances of bonuses and rewards.

Thus, whether you are viewing from an employer’s or an employee’s perspective, payroll is still of utmost significance. Trust me, it is a lot more than just a monthly salary.