1 out of every 5 corporate establishments uses an online payroll management system to streamline the processes revolving around payroll.
Do you think this number is enough to bring a payroll revolution in the HR industry? The answer would be NO! Given how drastically the software and other payroll technologies have changed the scenario to better when it comes to efficient and optimized payroll processing, it must be 5 on 5!
There are some features and benefits coming from installing an automated payroll system that an organization expects and tries to accomplish. The software must be able to deliver a number of basic payroll features, yet the important ones, at least.
Below are 6 most critical features that every payroll software must have so that the companies can achieve whatever outputs they have planned for:
- Categorized employees
- Structured payroll
- Accurate processing
- In-depth reporting
- Complied taxes
- Integrated systems
Now, we will discuss each of the aforementioned points in detail to understand what payroll automation can offer and what a company should be striving to achieve.
Employee Categorization
Before you go ahead and take care of the bigger responsibilities, planning how to categorize your employees on the basis of different job-related parameters is necessary. According to the department, job profile, employment type, work level, and other factors, the employees must be divided into groups so that making records of their payroll details becomes easier. When the information is fed separately in the payroll software, processes like data updation, salary verification, and payout become streamlined.
Payroll Structure
Next important benefit that payroll management systems offer is an organized structure of payroll processes. Specifically talking about the salary structure, there are no delays in deposits. The salaries are auto-assigned on the first day of admitting an employee and the rest is picked up from the system automatically every month. Thereafter, the salary is also automatically processed, making the administration of payroll processes more efficient. Moreover, department-wise or at OU level, pay groups and pay components can also be created as per the organizational structure.
100% Accuracy
Another crucial factor that makes the payroll process a success is the precision of payroll data. An HR software with efficient payroll modules ensures that the information about each employee’s salary and other payroll elements is accurate. The error detection algorithm is so strong that it magically picks and rectifies any discrepancies found in the calculation of payout or in the information at any payroll stage.
Insightful Reports
There is growing interest in cloud-based applications, but global payroll solutions are limited at this time.” – Deloitte
Due to this fact, there needs to be more cloud-enabled payroll systems so that the payroll data remains safe, secure, and centralized. On top of that, in-depth reports with valuable payroll insights can be obtained to enhance decision-making in the payroll area of the company. The top-notch payroll systems these days are capable of generating 3-D reports with vertical, horizontal, and drill-down views to evaluate every angle of the payroll data. In this way, it also becomes easier for the employees to review and modify the details, as required.
Tax Compliance
Another imperative expectation of any company from a payroll software is to manage the tax compliance so that human intervention is reduced. Also, the fact that statutory deductions like EPF, ESI, LFP< and Professional Taxes are auto-deducted, it minimizes the chances of getting into any legal troubles. The challans for each deduction are also generated automatically in the government-recommended format.
Seamless Integrations
There are times when one procedure is dependent on another to function properly. If the coordination is not maintained, there is a high risk of error or process failure altogether. For instance, time & attendance management is linked with payroll management for calculating payout as per the recorded pay days. So lastly, the payroll system is capable of integrating multiple systems so that each process works in synchronization. Seamless tethering of different systems is, thus, a boon of a payroll output that companies can easily achieve using payroll technology.