Payroll Software – What is Payroll System?, Process and Benefit
Payroll is more crucial then you can think, and the chances of committing errors while calculating payroll are always high. For a moment, let’s think about the employees whose family is entirely dependent on the monthly salary, and if there is any miscalculation or mistakes, such things can totally dishearten the employees. Such things adversely affect the productivity of the business directly or indirectly.
It is also equally crucial to adhere to the salary laws & other statutory compliances such as PF, PT, ESIC, income tax etc. A mistake leading to non-adherence to such compliances can attract serious legal issues. To achieve a 200% productive environment and happy employee you need to have the complete knowledge about the payroll system, starting from very basic till advanced features. You need to have complete payroll software implemented at your organization.
What is Payroll?
Payroll counts for the number of employees who get paid on a monthly basis & receives a fixed salary in return for the services offered by them. It also includes many business functions as:
Developing Organization Pay Policy
Defining payslip components like, basic, HRA, PF, ESIC , etc
Collecting all other payroll inputs, like convenience or meals consumed
Calculating the net salary payable, after calculating the deduction & other expenses
Releasing employee salary
Submitting the dues like, PF, TDS etc.
In other words, Payroll is responsible for calculating the net payable salary to the employees, & filing tax returns to the authorities.
Stages of Payroll Processing
A payroll officer has to do all the planning & calculations carefully. There are always tasks which are ongoing which demand special attention. All in all the complete payroll process can be categorized into three stages, pre-payroll, actual payroll & post payroll.
Pre-payroll Activities which includes defining payroll, gathering inputs & input validations.
Actual Payroll Process which includes payroll calculation.
Post Payroll process which includes payroll accounting, reporting, statutory compliances & filing tax returns
What are the challenges in handling payroll?
There are two main reasons why a payroll management becomes challenging.
As mentioned before, adhering to the leading terms & conditions is very important. Any negligence in the statutory requirements can lead to levy serious fines & penalties and hamper the business existence also. But in today’s scenario, it has become quite easier with the availability of advanced Payroll System that automatically calculates the payroll with compliance to statutory laws.
Multiple Input Sources
To process the complete payroll within the required time duration, you need to collect all the data from various sources like attendance, pay hours, deductions, expenses, etc making it a complex procedure to follow every month. For many HR professionals, this is a very difficult task & sometimes it becomes monotonous. To solve such issues of calculations, limitation & remove the process of manual data entry, Payroll software can be implemented. Payroll software not only minimizes the difficulty in extracting information but also simplifies the tedious job of payroll calculations.
Best payroll system for your organization
Moving from a manual payroll system to an automated Online HR Payroll System will save a lot of time & efforts. You can consider the below features while selecting a payroll system.
Features of Payroll System
Easy to use
You should always look for software which is easy to use & comfortable with the changing business requirements. Payroll software must simplify the process rather than complicating it with heavy & difficult processing system.
Keeping in mind the current situation, as the world is moving slowly following social distancing, it is better to always look for an Online HR Payroll System which is scalable. If you have only say 20 employees at present, you won’t be having the same in future also. If your business grows you are destined to have hundreds of employees. To sustain such heavy changes you always need software that can be easily scaled respectively to your business size.
Employee Self- service Portal
Again this is very important to maintain social distancing inside the organization. The employee can fill in all the details online, without any physical contact. It is also quite easy to maintain the online records in Epayroll System & the chances on errors or data loss are also negligible.
Integration with the accounting system
In the end, it is important that your payroll system should be integrated with your accounting system. So that you can easily manage all your transactions, accounts & release employees’ salary on time.
With all above-mentioned points & features, we can draw a conclusion that managing payroll is not that tough if you have the right Payroll Software installed at your organization. It is a process that can be easy with the apt software.