What is Payroll Software?
Payroll software helps small businesses track logged hours for every employee and calculate paychecks. Taxes and deductions can also be managed efficiently with payroll software. You can take payroll management software as an independent application or incorporate this as a module with your HRMS software.
By easily calculating paychecks with payroll management software, your accounts professionals can quickly deposit funds into employee accounts as per their pay structure and ensure that they are remunerated on time. This is the ideal software to ease your payroll burden in a few clicks. From calculating accurate salaries to reimbursements, advances and loans, all can be managed with payroll software.
Top Features of Payroll Management Software
- HR Payroll Processing: By automating the payroll process, you can automatically calculate the employee’s gross pay based on days worked in the month. This information can be exported from a time & attendance module or manually entered from a timesheet. Apart from this, it considers tax deductions, EPF contributions, insurance policies, etc. Also, it provides details of bonuses and salary hikes while preparing the monthly salary.
- Payroll Tax Calculator: The best payroll management system software helps efficiently execute the tax management process of employees. It helps calculate deductions and benefits such as any investment made under Section 80 C, any charitable contributions, EMIs on home and educational loans. HR payroll systems also updates any changes in tax policy and sends out alerts to the user to notify them.
- Reporting: Top HR payroll software solutions come integrated with reporting functionality that helps with compensation analysis, deduction analysis, gross-to-net payroll register, tax reports, and more. Users can create custom reports and take advantage of pre-installed reporting templates.
- Mobile App Functionality: The best payroll system offers a mobile app through which users can log in their accounts and view their salaries. Employers can process employees’ payroll easily through the app. And that’s not all. You can add bonuses, generate payroll summary reports and more. Through the mobile apps of top HR payroll software in India, you can add reminders to receive updates about employee birthdays, bank holidays and other events.
- Payslip Generation: The best payroll & HR software helps generate pay slips with just a click. The pay slips carry necessary information concerning taxes and employee allowances and benefits. You can also print or download these pay slips without any trouble using HR payroll software India.
- Benefits Administration: Payroll management solutions offer an integrated benefits management module through which the company owner/HR manager can monitor the benefits offered to employees. Usually, companies offer health insurance, retirement, gratuity, pension/welfare packages, vacation/sick leaves, and other benefits. Payroll solutions allow employees to pick and choose the benefits they want from their basket of allowances. The employees can also submit their claims and upload proofs for online approvals.
- Cheque Deposit/Online Payment: Payroll solutions allow you to print or electronically send paycheques. You also have the option of directly depositing employee salaries in their bank accounts.
How Does Payroll Software Work?
Payroll system software helps organizations manage compensation and other employee payment related details accurately and automatically. HR & payroll software can be integrated with leave & attendance system to track working days, overtimes of employees at the time of salary processing.
Payroll management system supports employee compensation in multiple ways, such as, cheque, bank deposit, payment card, etc. The software also provides insights about employee earnings and expenses across different departments. Such insights help the management take informed decisions to stay in control of their finances.
Overall, payroll systems make the entire payroll flow simple to help businesses manage tax and compliance for different branches across different locations. Employees can use payroll HRMS software to manage their personal information, reimbursements, tax declarations and other details.
Who Needs Payroll Management Software?
All kinds of businesses, having twenty or two thousand employees, require payroll systems software to take care of their payroll needs. The essential purpose of any payroll solution is to process employee salaries on time without any hassle. The software helps manage all types of payment records related to your employees.
Payroll is an integral function for any growing business, whether it is a small business or a large enterprise. To rack and manage employee payments, it’s better to invest in a payroll systems software. Taxation is also simplified as the HRIS and payroll software helps manage tax related details as per the pay structure of every employee.
Why Organizations Use Payroll Software?
Payroll management software helps accounting professionals save time and money in tax preparation, payroll processing, rewards and remunerations. Most importantly, payroll systems software is critical for accountants and small business owners who otherwise spend a lot of time in manually calculating wages and benefits.
With the use of payroll processing software, businesses can stay up to date with tax rules and compliance tools. Above all, the software is secure to use and keeps the data of your employee salary confidential.
Payroll management system is equally preferred by employees, who can access all their salary, loans and advance related details at a single portal. They can also access their pay slips and update important tax related documents.
Here are the reasons why organizations use payroll software:
- No more manual errors
- Saves time and money
- Ensures data security
- Timely payment to employees
- Easy to manage expenses and earnings
Here are the reasons why employees prefer payroll software for organizations:
- Easy to access salary pay particulars
- Quickly view and download pay slips
- Seamlessly update important tax related documents
- Advance taxes and expenses management
Payroll Management System Modules
- Attendance and Payroll Management: Payroll solution’s time and attendance management module help record the check-in and check-out time of employees. By using the attendance and payroll software, employers can track the clock-ins and outs of their workforce. You can also keep an eagle eye on vacation/sick leaves of employees. The majority of payroll software has an in-built time & attendance module however, others may require integration with an attendance module separately.
- Expense Management: All kinds of expenses, deductions, loans, advances, and other employee costs are recorded, monitored and calculated in this module. Quite a few payroll systems have an integrated loan ledger feature that keeps a list of all approved employee loans. You can also manage reimbursements for employees based on approved expenses.
- Leave Management: This is another module offered by HRIS and payroll software that helps employees submit their leave claims and monitor leave balance. Managers can review these leave requests and either approve or deny them, sending a notification to the concerned employee. This module helps in calculating, loss of pays, if any for employees based on their leave balance.
- Full and Final Employee Payroll System: This module helps auto-generate full and final settlement reports for employees. An integral part of any top HRIS and payroll software, makes employee exits a breezy affair. You can quickly make final payments to employees on their last day without missing a beat.
- Tax Calculation: Payroll system helps businesses deal with changing tax laws and legal readings. It helps fill different tax-related form automatically and ensures timely returns filing. This way, organizations can avoid legal penalties and stay compliant with the latest business laws.
You can access and print all important tax and salary related forms. Employees can also access forms at ease and ensure updated tax-related records.
How Does Payroll System Software Streamline Tax & Compliance?
Payroll software helps accounting professionals and business owners streamline all the processes related to regulatory compliance, employee salary processing and taxation. It helps with tax calculations based on the salary structure of every employee and bonus, and ensures timely tax filing based on pre-set timelines.
With the help of payroll management software, accounting professionals and auditors can track any discrepancy in taxation and salary processing. This way, all data related to employee benefits, company expenses and earnings are maintained accurately for audit purposes.
Advantages of HR Payroll Software
- Pay Slip Management
- Up to Date with Tax & Compliance
- Accurate Processing of Employee Salary
- Timely Payment of Taxes
- Builds Transparency
- Quick Access to Employee Data
- Customized Reports
Benefits of HR Payroll Software
Top payroll software solutions offer quite a few benefits to businesses and help bring a level of efficiency, efficacy, and order to the organization. Some of the benefits of payroll software system are:
- Payroll Solution with Pay Slip Management: Acting as a central repository of employee salary records, payslips, expense, and reimbursement claims, payroll processing software ensures secure document management. It helps in the handling of documents such as offer letters, experience letters, payslips, and employee profiles.
- Avoid Data Entry Errors: The major benefit of a payroll solution is you save time and avoid making silly mistakes. You know the kind you used to make when you were a kid. (Some of us still make them…you know old habits, hard to break!) Payroll processes are susceptible to manual errors and can be time-exhausting. Even a misplaced ‘0’ can have severe repercussions and send your finances in a tizzy. To keep your finances in good health, you can automate your payroll to avert inaccuracy in financial statements.
- Stay Up to Date with Payroll Taxes: With the help of the payroll solution, employers can keep track of any changes which have taken place with respect to payroll tax policies. Payroll tax generally falls into two different categories, namely deductions from an employee’s salary and taxes paid by the employer in lieu of employee wages. In the situation where any tax updates have taken place, the same is updated on the software automatically.
- Accurate Processing of Employee Salary: Incorrect salary transfers can leave an employee dissatisfied and may even affect their morale. This is where payroll management software comes in the picture. Through a payroll management solution, you can ensure that no miscalculations occur. You can automatically factor in several key factors like salary grade, benefits, expenses, allowances and deductions at the time of processing employee salaries.
- Correct Payment of Taxes: If your employees are spread across different states of the country or other countries, tax compliance can bog you down. Most payroll systems offer users the facility to pre-set tax rules based on location. With the help of automation, the HR manager can easily compute the taxes owed and paid per employee. He/she can also make use of templates to speed up the submission of scheduled reports to regulatory agencies.
- Build Transparency: Payroll software solutions help bring transparency with respect to timesheets, benefits, agreements and other related data. With the help of payroll systems, you can settle disputes related to leaves, absences, expenses, adjustments, and other wage-related items with pinpoint accuracy.
- Quick Access to Employee Data: With all employment data available at a centralized location, payroll solutions can easily automate employee contracts, performance records, leaves, timesheets and conversations. Authorized users can quickly access related data through various devices. Furthermore, keeping a repository of data is helpful beyond just payroll, like for example, job evaluation, apex costing, etc.
- Customized Reports: The majority of attendance and payroll solutions offer the ability to customize reports based on a time period, accounting method, location, etc. You can also set parameters with respect to what goes in a report such as payslips, benefits, expenses, current or historical data related to finance & accounting. By making use of smart alerts, you can easily generate, and schedule recurring reports based on a standard format.
- Enhanced Data Security: By having an online payroll solution, you protect yourself from outside threats that may leave you vulnerable and expose your sensitive data. Only the HR managers, accountants, business owners, and authorized staff will have access to payroll-related data.
- Scalability: Scalability plays a huge role when deciding which payroll management system software is right for you. You must consider the size of your organization, whether you have offices at multiple locations, cities or countries. Are you looking to downsize your company or hire new recruits? So, make sure you go for a payroll solution that offers you the ability to scale up or down.
Factors to Consider When You Buy Payroll Software
If you’re looking to buy offline or online payroll system software, there are certain criteria that you may need to evaluate first before taking the leap. Let’s find out what you need to keep in mind before investing in a payroll management solution:
- Define the Need: The first step on your journey to buy payroll software is an assessment of your needs. Do you want a standalone payroll solution that takes care of your major payroll tasks like salary processing, and leave and expense management? Do you need an integrated payroll system that can be used along with your existing HRMS software?
- After you’ve performed the internal assessment, you’ve to choose the best HR & payroll software according to your defined needs.
- Consider the Budget: You have several options for payroll management software to choose from. Options that are available at different price models. If you’re working on a limited budget, you can take a monthly/yearly subscription with cloud-based payroll system software. You also have the option of ‘pay per use’ where you pay as per the amount of bandwidth you utilize.
- Ask for Payroll Software Demo: Check if the payroll software vendor offers free demos or trial version. This is especially useful if you don’t want to make a significant investment without having a look at the software features. Find out if the payroll management software fits the bill and offers the features/modules you’re looking for. After going through the demo, evaluate if you’re comfortable and willing to take the jump.
- User Experience (UX): User Experience plays an important role when it comes to choosing a solution for salary payroll software. The design aesthetic of the system, how pleasing it is on the eye, its user-friendliness can swing the buyer’s decision. Top payroll system with advanced modules will not overwhelm the user if it's backed by a clean interface.
- Customization Possibility: Whether you want a robust payroll software with all key features or the basic modules for timely salary processing and benefits administration. Accordingly, you can ask for customized payroll software with specific modules.
Payroll Software Trends - The Future of Payroll Management System
- Cloud-Based Payroll Systems for High-End Data Security: Cloud-based payroll software provides role-based access to different employee payment-related data anytime and from anywhere. Also, the software ensures that the employee-related data is updated in real time with every onboarding and offboarding.
- AI-Enabled Payroll Systems: Such solutions ensure that all compensation, bonus, loans, advances, and reimbursement-related queries of employees are answered instantly with AI-powered chatbots. This will save the time of your HR & payroll professionals.
- Integrated Payroll Management System: Integrated payroll systems with HRMS, leave and attendance software provide a better view of the work hours of every employee. The software ensures accurate payroll processing without any scope of redundancy or duplication.