What is Payroll Software? Why a company should have Payroll Management software?
Payroll processing software is a tool that aims to restructure and automate the process of paying the employees of a company, making the task of payroll processing less time-consuming and standardized. Payroll management systems can be acquired from a payroll software vendor as a separate package or sometimes contained within a larger enterprise resource planning (ERP) package as a module.
One of the most fundamental functions of a business is to take care of the human resources. Managing Human resources can present you with a variety of issues, with just one of them being managing payroll. Managing payroll manually is a tough task. An organization with few individuals can get away with a manual process, however the management will be a time consuming task with a large amount of unstructured data in those excel sheets!
Payroll management software may be costlier to smaller organizations but remains to be an important activity which is repeated consistently with regular complexities identified with payments, deductions and statutory regulations. Small organizations may process the payroll of employees manually, but when the company grows, manual payroll processing will get tougher and more time consuming. A practical and effective payroll solution is an absolute necessity for a business to handle payroll processing, which in turn simplifies the tasks and efficiency of the business in the long run.
HR professionals or separate HR departments are very rare in small-scale organizations as they cannot justify the cost of having one. In such cases the payroll processing task can fall on anybody, from an executive to an administrator. While they can manage payroll manually up to some extent, in the long run it will tend to take a toll on their performance levels. A payroll processing system can help save two of the most important resources in business – money and time.
Manual Processing of payroll leads to human errors. Calculating salaries for one or two employees may be an easy task but the same task becomes complex as the business grows and more workforce is added. Errors commonly occur in the full and Final settlement and increases when the workforce joins in the middle of the Financial year as the process is being manually done. At some stage, organizations may realize that without the right payroll software, expected growth of the business cannot be achieved.
Also, payroll processing systems have the capability to improve the efficiency of small and medium enterprises, improving the general operational effectiveness. Payroll management software helps in computing pay rates including: statutory deductions such as PF and ESI, HRA, tax deductions, reimbursements according to CTC norms, employee documents management, email and document management in an organized way, keeping track of Employee attendance and loans and advances.
Also, payroll management system makes tax obligations much effortless. Estimation of Income tax is another regular burdensome activity that needs to comply with government regulations and standards. An effective payroll solution can automate this process with much more precision.
How Payroll Management Software can help your business?
Looking into the benefits of payroll software:
- Save time and Money: When employees are provided access to payroll software and they themselves work on the payroll software without seeking help of professionals a lot of time and money is saved in the process. No expertise is needed to use payroll software, making it very user-friendly.
- Notifications and Updates: The Payroll software keeps reminding you of important notifications like tax payments and salary due dates. There are reminders too which keep you in the loop about the different tasks to be completed.
- Employee attendance system: This module, part of the payroll software makes it easy to manage different aspects of employee status like check on sick leave, absence and overtime. Time management software with payroll helps employees to make plans and decisions on a particular day. In a single glance all kinds of information on the employee can be obtained, such as how long they have taken leave, whether to allow more leave or how much leave is entitled to them
- Payslips:This salary slip software helps you to generate payslips so that your employees and company can keep the payment records
- Time Saver: Automation of the data management in this payroll management software helps speeding up the process of your work and saves a lot of time.
- Negligible Errors/Mistakes: Errors/mistakes are minimized due to computing and automation benefits
- Customer Services: With saving time and money your employees can focus more on the customers thereby improving your business standards and profits.
- Customization: Payroll processing software can be customized for any kind of business. You can even add the different departments for increasing the software data usage across your enterprise and also be updated on all employees’ information
- Payroll Management: The most sought-after feature is the ability to customise or change payroll calculations based on the prevailing financial scenario. This is done by altering the formulas for taxation and allowance benefits.
- Generate Pay slips: You can easily generate payslips for all employees through the payroll management system. All the necessary calculations like taxes and allowances/benefits are also added onto these slips. The payslips can also be easily printed.
- Employee Management: The payroll software also helps indirectly in managing your employees especially in terms of their work and leave status and related attendance records. Some software also has the feature of providing leave encashment and loan repayment options.
- HR Management System: The software is really helpful in providing support to manage several HR activities
Important features of a Payroll Management Software:
Payroll software consolidates and automates the process of paying salary and other compensation due to a company’s employees. The payroll software not only just calculates salary but gives you updated information about the total cost of employment and also keeps track of the individual employees. Most of the payroll software is customizable as you can add more features to your software as your company grows.
These days, software can be customized to your requirements and employee capabilities. Using this software enables you to cut administrative costs and also aids in a number of other tasks as well. It can automatically and accurately perform a range of tasks from processing salary to extracting reports on payments and deductions and tax calculations.
The most important problems found in any companies related to HR are handing out remuneration checks and transferring funds for company’s employees. These are regular chores that every business undertakes. Most of the routine tasks that are done manually can now be automated by software and hardware solutions. Therefore, it is only logical to set up an effective payroll system to improve the productivity and efficiency of your HR department.
Payroll Management System, typically, can assist you with:
- Calculating major factors such as the hours spent in the office by an employee
- Calculating the amount of remuneration that each employee receives
- Online leave management, tracking
- Statutory Compliance Reports such as PF/ESI/TDS/PT
- MIS Reports and graphical Dashboard
- Expense and Reimbursement Claims
By using Primo Payroll software, all above processes can be performed very effectively and easily without facing any hurdle in the system.
For Payroll Outsourcers:
Outsourcing your payroll services can be more advantageous. Primo Payroll is the ideal technology partner for payroll outsourcing service providers. By automating the number crunching, report generation, and client communication, it enables you to handle more business with less effort. An effective payroll system will have a robust security feature that will not allow fraud by employees.
Performing the below methods will assist you in employing a very good and effective payroll system for your organization.
Therefore, if your organization is in need of a system that is versatile and based on accuracy, you have to get your hands on a payroll management system such as Primo Payroll to take your business to new levels of proficiency.