Payroll automation saves HR teams countless hours and substantially improves accuracy and compliance. Cloud-based HR software can turn hours of work into minutes. Saudi Arabian businesses don’t deal very well with manual payroll processes. These outdated methods often cause errors, compliance problems and unhappy employees.
Dynamo Payroll has a detailed payroll automation software solution built for Microsoft Dynamics 365 Finance & Operations that tackles these challenges directly. This reliable HR payroll automation system works in both Arabic and English to support teams of all types. The payroll automation process automatically calculates precise GOSI figures for Saudi nationals, GCC, and non-Saudi employees. The system connects finance and HR teams end-to-end, while employees use self-service features that improve workplace satisfaction. This cloud-based solution makes HR operations simpler, reduces errors and boosts productivity throughout the organization.
Localized Payroll Compliance in Saudi Arabia
Saudi businesses face unique challenges with payroll compliance in the Kingdom. Companies need to understand complex regulatory requirements, especially when dealing with social insurance contributions and end-of-service benefits.
Saudi Arabia’s social insurance system falls under the General Organization for Social Insurance (GOSI). The system needs precise contribution calculations based on employee nationality. Saudi nationals’ total GOSI contribution comes to 21.5% of their basic salary plus housing allowance. The employer pays 11.75% (9% for retirement, 2% for compensation and disability, 0.75% for unemployment). The employee contributes 9.75% (9% retirement, 0.75% unemployment). Expatriate employees are different – their employers only pay 2% for occupational hazards.
Companies also need to calculate and set aside End-of-Service Benefits (EOSB), which is a mandatory severance payment system. The calculation works like this:
- For employees with less than 5 years of service: half a month’s salary per year
- For those with more than 5 years: one month’s salary for each year beyond the first five
The Wage Protection System (WPS) stands as another key compliance requirement. Companies must create WPS-compliant salary files using approved bank templates and submit them for processing. This gives employees their payments on time and accurately while keeping proper records for regulatory authorities.
Yes, it is clear these complex requirements need sophisticated payroll automation systems. Dynamo Payroll blends with Dynamics 365 Finance & Operations to give Saudi businesses a perfect solution. It handles automated GOSI calculations, EOSB accruals, and WPS-compliant processing automatically. This creates smooth connections between finance and HR functions and removes manual processes that often cause compliance errors and penalties. The software stays current with regulatory requirements and helps guide businesses through the maximum GOSI contribution cap of SAR 45,000.
Automation and Self-Service with Dynamo Payroll
Dynamo Payroll revolutionizes employee experience through its built-in self-service capabilities. Staff members can manage their information through an accessible portal that supports both Arabic and English interfaces.
The employee self-service portal gives staff direct access to essential payroll functions. Employees can request letters, apply for leave, check salary details, and handle many other tasks without involving HR. This approach reduces administrative work and improves data accuracy. Staff members build trust with management because they can access their financial information instantly.
The payroll automation system tracks time and attendance with precision and prepares data for processing. This information flows naturally into the payroll automation process and eliminates error-prone manual entry. The automated validation system spots potential issues early by flagging excessive overtime, missing entries, or unusual changes in pay amounts.
HR departments become more productive with hr payroll automation capabilities. The system creates detailed audit trails of all payroll activities and records who made changes, the timing of modifications, and specific changes. This thorough tracking helps teams stay accountable and provides essential documentation for audits or disputes.
Dynamo Payroll’s integration with Dynamics 365 Finance & Operations creates a single platform for workforce management. The system architecture provides immediate visibility into every aspect of personnel administration. Finance and HR teams benefit from this complete integration that removes data silos.
The payroll automation software makes compliance management simple by staying current with tax regulations and labor laws. Regular updates reduce legal risks and penalties. Dynamo Payroll offers a secure and efficient solution that grows with your business while providing the bilingual support Saudi Arabian operations need.
Integration with Dynamics 365 Finance & Operations
Dynamo Payroll and Dynamics 365 Finance & Operations work together to create a single global system that manages your workforce effectively. This integration stands apart from standalone solutions. It delivers clear visibility and up-to-the-minute data analysis for every workforce aspect. A dual-write system connects human resources and finance applications almost instantly. This eliminates isolated data pools and keeps information consistent across your organization.
Employee data moves smoothly into financial processes. The system automatically updates payroll calculations with employee records, compensation changes, and employment status modifications. This reduces errors and ensures your staff gets paid correctly. Your organization keeps all employee details in sync – from compensation and benefits to performance and attendance records.
Finance teams benefit significantly from this integration:
- HR data flows straight to financial planning tools, giving precise, current analytical insights about payroll, benefits, and labor distribution
- Labor costs become easier to predict with fewer payroll errors
- Audit processes become efficient with better compliance verification
- Bank transfer files generate automatically for quick payment processing
The payroll automation system lets organizations monitor labor costs precisely. It maps payroll information directly to departments, job roles, business units, and project accounts. Leaders can see exactly where workforce investments go and how they affect overall performance.
The payroll automation process does more than just improve operations. It helps make better decisions through advanced analytics. The system examines both payroll and employee data to create valuable insights that propel development. Azure Synapse Link for Dynamics 365 lets organizations learn about their Dynamics 365 data right away. This combines the capabilities of Dynamics 365 with Azure Synapse Analytics.
Administrative staff have ended up becoming knowledge workers. This change allows HR departments to take on a strategic role in their organization’s success.
Conclusion
Dynamo Payroll paired with Dynamics 365 Finance & Operations shows what the future of HR management in Saudi Arabia looks like. This powerful combination helps organizations deal with their biggest payroll challenges in the Kingdom.
The system handles complex compliance requirements through automated GOSI calculations, precise EOSB accruals, and WPS-compliant processing. This helps businesses avoid regulatory penalties and makes sure employees get paid correctly.
Self-service features make a real difference too. Employees can access their information through interfaces in two languages, which cuts down on admin work and makes everyone happier at work. The complete audit trails also give you all the documentation you need to track payroll activities.
The uninterrupted connection between HR and financial systems breaks down old data barriers. Information updates immediately throughout the organization, which lets you track labor costs and plan finances better.
Dynamo Payroll’s cloud-based system gives Saudi businesses an edge because it grows easily with their organization. HR departments can turn basic admin tasks into opportunities that add real value to business success.
Saudi organizations that want to update their payroll systems while following local regulations will find Dynamo Payroll fits their needs perfectly. Finance and HR teams benefit from this all-in-one platform that handles everything about workforce management in Saudi Arabia’s unique business landscape.
Dynamics Business Solutions (DBS) is certified Microsoft Dynamics partner in UAE, we take pride in our ability to develop and deploy the right business solution that matches global client’s requirements. DBS has developed in-house state of the art solutions for HR and Payroll, Dynamo and DynaPay on top of Microsoft Dynamics 365 FO and Business Central respectively. These solutions are catering the all business needs of HR and Payroll departments. We provide best services and support to our clients.
To know more, speak to our expert at Riyadh: +966 595071619 Dubai: +971 4 447 5525 Jeddah: +966 508162072 or inbox us your query at ask@dbsksa.com OR visit www.dbsksa.com
FAQs
Q1. What are the key features of Dynamo Payroll for Saudi Arabian businesses?
Dynamo Payroll offers automated GOSI calculations, EOSB accruals, WPS-compliant processing, bilingual support in Arabic and English, and seamless integration with Dynamics 365 Finance & Operations. It provides a comprehensive solution for payroll automation and compliance in Saudi Arabia.
Q2. How does Dynamo Payroll handle GOSI calculations for different employee types?
Dynamo Payroll automatically calculates GOSI contributions based on employee nationality. For Saudi nationals, it computes the total 21.5% contribution, while for expatriates, it calculates the 2% employer contribution for occupational hazards, ensuring accurate compliance with Saudi regulations.
Q3. What self-service features does Dynamo Payroll offer to employees?
Employees can access a self-service portal to view salary details, request letters, apply for leave, and manage various tasks independently. This portal is available in both Arabic and English, improving transparency and reducing administrative burdens on HR departments.
Q4. How does the integration with Dynamics 365 Finance & Operations benefit organizations?
The integration provides real-time data synchronization between HR and finance systems, enabling accurate labor cost tracking, precise financial planning, and enhanced compliance checks. It also offers advanced analytics capabilities for better decision-making and strategic workforce management.
Q5. Can Dynamo Payroll handle the complexities of End-of-Service Benefits (EOSB) in Saudi Arabia?
Yes, Dynamo Payroll automates EOSB calculations and accruals based on Saudi Arabian regulations. It accurately computes severance payments, considering factors such as length of service and salary, ensuring compliance with local labor laws.
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