Payroll Management is one of the most significant business operations performed by your company. It involves executing all complex calculations of employee salary, taxes, and incentives by keeping track on their working hours, claimed benefits, tax deductions, and much more. It is an extremely mind-taxing and laborious job that doesn’t generate income in any form. Therefore, it is best to keep this process to the bare minimum in terms of costs and time to augment your business’s productivity levels. This is where a robust HR Payroll Software comes into the picture.
HR Payroll Software is designed to manage and streamline all tasks of employee payment and submitting employee taxes. The software helps in keeping an automatic track of the employee working hours, calculates wages and tax deductions, and finally issues paychecks. Most of the payroll software automatically update whenever any new tax law is introduced and also reminds the employees about filing tax forms.
Benefits of Using a Payroll Management Software
- Saves time
Managing employee payroll is very time-consuming and also error-prone if done manually. A simple misplaced decimal point, for instance, can create major confusion and mayhem. Also, since the tax and other regulatory laws keep on changing, it is difficult to avoid all kinds of malpractices. Automating the entire system can largely help by ruling out all inaccurate calculations. Payroll software compiles all employee information and latest law regulations, leaving no room for errors.
- Easy to calculate and pay taxes
With payroll software, you can preset the tax rules. This makes it very easy to calculate the taxes owed by each employee. There are templates that help in quickly submitting reports to the concerned authorities. Additionally, whenever a new tax law is introduced, the payroll software reflects the changes and helps to avoid any kind of payment penalties.
- Increased transparency
There is complete transparency in all operations with a payroll system as all the employee data such as working hours, leaves, expenses, loan advances, benefits, etc. are recorded in a clear and unambiguous manner. This rules out all possibilities of error and brings transparency and impartiality in all dealings.
- Better security
Given this payroll software are so easy to manage and control, the need for outsourcing payroll management to any third-party service provider is overruled. This helps in keeping all the sensitive employee information such as their wages and working records within the organization.
- Easy access to employee data
Payroll software centralizes all employee information such as their performance records, working schedule, leaves, and absences, completed projects, timesheets, etc. This data is securely stored and can be easily accessed at the time of need. Furthermore, the compilation of this information helps the managers in doing quick performance evaluation and opex costing.
Types of HR Payroll Management Software
There are two types of payroll software which are as follows.
- Integrated Software– This means that the payroll software is integrated as a module in an accounting or Human Resource Management software. It performs the primary payroll functions such as payroll management, tax deductions and issuance of paychecks.
- Dedicated Software– As the name suggests, dedicated payroll software is a standalone app and comes without a full-fledged HRM software. Apart from the basic payroll administration, it incorporates expert features such as employee time and attendance tracking, benefits administration, customized reports, expense management, FnF settlement, etc. You can go for customized software with features that match your business needs.
Significant Features of A Payroll Management Software
A payroll management software accomplishes a myriad of operations including calculation of wages and planning employee benefits. Below are some of the most important features to be included in your payroll software.
- Payroll Management- This allows to automatically calculate employee wages on a daily, weekly, fortnightly or monthly basis, depending upon your preset schedule. You only need to manually input the rules once, after which the software automatically computes all wage-related factors such as employee attendance, salaries, benefits, leaves, loan advances, taxes along with other terms and policies to calculate a final payable amount.
- Record-keeping- Payroll management software helps in storing all the significant employee data and other relevant documents. These documents are well-organized and can be easily tracked or retrieved at the time of need.
- Time & Attendance Tracking- Payroll management software comes with a time-tracking feature that enables the managers to mark the attendance of the employees along with their accurate working hours. The software tracks all leaves, working shifts, absence, etc. and uses the information to calculate the wages. Nowadays, payroll software is coming with a biometric integration that shows the exact employee clock in, clock out timings.
- Leaves Management- This feature enables the employees to submit leave requests to the HR managers and even view their own leave balance. On the other hand, the HR managers can review leave requests and have the option to approve or decline the requests. Finally, they can calculate the wage based on the leaves are taken.
- Income Tax- A robust payroll management software offers tools for calculating pre and post-tax wages. It stays updated with the latest tax regulations and calculates accurate tax projections and TDS estimates based on the same. Also, it reminds the employees when it is time to start filing the tax forms.
- Expense Management- All the employee expenses including loans, leave deductions, advances are well-entered into the system and duly calculated. Sometimes, the software also features a loan ledger that maintains all details of the employee loans.
- Benefits & Bonus Management- This feature tracks all the benefits and bonuses offered to the employees. The workers can even select the type of benefit and raise a claim for the same.
- Reports, Paychecks, and Forms- This feature allows the managers to generate reports depicting the salary statements, benefits reports and much more. They can also issue paychecks to the employees using the same. On the other hand, the employees can download and submit leave forms.
- FnF Settlement- FnF settlement means the Full and Final settlement of an employee leaving the organization. The features take all the factors such as owed salary, bonus, benefits, medical, travel allowance, expense or loan deduction, etc. into account and instantly generates an FnF sheet.
HR Payroll Management System is an effective and efficient solution for addressing all your employee-related activities. An increasing number of business enterprises are embracing the software instead of outsourcing their payroll management to a third-party service provider. This ensures that all your confidential data is well-secured within the walls of your business. Moreover, the software vastly enhances productivity and eradicates all chances of erroneous calculations. So, if you do not have customized payroll software to match your business needs yet, now is the time.