How do you know whether you have purchased the perfect payroll software for your organization? Did you consider the cost-effectiveness, the user-friendliness, or the time-saving parameters? There are multiple aspects to consider before you invest in a high-tech payroll system in India. Otherwise, if you cannot make optimum use of the same, all your expenditure will go in vain.
Running a business of any size is an expensive affair. When it comes to the HR processes, one of the most complex tasks is payroll processing. Payroll penalties are the last (read not even last) thing that any business owner would want to add to their list of expenses. Employers hugely invest in hi-tech software to grow their businesses and solve challenges in payroll processing. However, lack of enough information might lead to their thoughtful decision to bring a new workplace solution and incorporate it into the system as a hazard. And the complexity that payroll processing comes with obsolete payroll software isn’t possible to get it right every time!
Must-have features of Payroll Software:
- Mobile-based payroll software
- Cloud-based payroll Sofwtare
- HR Technology integration
- Financial Wellness
- Learning Curve
What Payroll Features Trends Does Payroll Software Offer?
Some businessmen misunderstand the entire meaning and use of a payroll system. They believe it is only meant to streamline employee earnings and deductions or the timely deposit of payout/salary. But the thing is, there are several factors involved in coordinating the payroll process, as mentioned below:
- Salary calculation
- Tax filing services
- Compliance management
- Direct deposit
- Expense management
- Compensation administration
- Employee self-service
- Detailed payroll reporting
Now, if the payroll module of your HR software lacks any of these significant functions, you have probably landed on the wrong one.
Before investing in payroll software for your organization, you must consider the following questions:
- Is your Payroll Software Scalable?
HR tasks are more or less the same for every enterprise scale. Some operations are only practiced in start-ups and SMEs, while others are only restricted to the MNCs. But, payroll is a process that is integral to every type of business, be it small, medium, or large.
The first procedure that an employer wants to go smoothly is payroll processing. So, the functioning of the payroll software should be such that it is fit for ‘n’ number of employees, meaning 10 to 10,000. In a word, the system must be scalable as per the growth in the range of a company’s employee base.
- Does it Provide Flexibility?
Since we have clarified that payroll is a combination of not one or two but a wide range of functions, not a single feature must be compromised. A flexible software implies that it grows alongside your business and expands as per requirements. So, when you start a company, the needs are lesser, but as you leap, the goals get bigger and requirements higher. Therefore, payroll software must be capable of adopting new features and seamlessly integrating other modules/functions along the way.
- Does it offer Transparency in Payment?
Some businesses have made salary-related information accessible; however, there are still many companies that follow no rules or structure when it comes to compensating employees for different grades in the organization. It is necessary to do so, though as transparency promotes fairness and equality and elevates the company’s culture and brand image. Your payroll software must act as a catalyst to bring transparency in operations and payroll functions.
What are the major components of Payroll?
Payroll components include notice period adjustments, leave encashments, loans and arrears disbursement, settlement statements, statutory compliances, investment declarations, customized pay slips, Tax deductions and much more.
- Is It Only Desktop-Based?
It is the era of smartphones and applications. So, why should your payroll software be limited to desktops and stagnant systems? In the age of advanced technologies, employees are now provided with the option to perform tasks on the go! Therefore, whenever and wherever the user wants to manage a particular payroll-related responsibility, it must be easily accomplished using the relevant feature on your payroll mobile app.
- Is it Only cloud-based payroll software?
The on-premise software are doing little or no good currently. The work model hopscotch has clarified that only on-cloud software would gain popularity and momentum. Such software allow HRs to log in and access the software from anywhere, anytime safely. For instance, if it is not safe to go to the office, HRs can manage their functions with cloud-based HRMS software. One other added advantage of cloud based payroll software is that data can be encrypted and saved from hackers, hence data confidentiality can be maintained.
- Is it offer Seamless HR Technology Integration?
Payroll and other managerial tasks are two entirely different disciplines for HRs. But, integrating your payroll software and HR software or buying one integrated HCM solution can turn out to be immensely helpful for your business. When attendance, payroll, performance, and other HR tasks are synced and can be navigated through a single app, it can save you from committing mistakes and wasting time. It keeps you away from penalties and keeps your employees happy as no one gets underpaid.
- Does it assure Financial Wellness?
The pandemic has made every company work while being a societal safety net. It has shown employees and employers the actual value of each other. While keeping employees engaged has become more critical, a part of it also involves keeping in mind the employees’ financial wellness.
Payroll software providers not only have made the changes in their software to assure wellness but are also working continuously to abide by the government norms. Moreover, they are also innovating the whole process in their own ways to help employees in easy loans, competitive benefits, employees’ financial health reports, etc. to maintain the wellness of employees so that the employees experience less or no stress and can be their most productive selves.
Recommended for you: How to support your employees coming to the office in this pandemic?
- How Low Is The Learning Curve?
On average every year 40% of the SMEs alone are found paying penalties every year. The most common reasons for filing errors and not paying the dues on time. Employees take the time to understand payroll software can be one of the reasons for paying penalties. Employees must quickly learn and adapt to the features of your payroll software and start implementing them in no time. So, the learning curve must be extremely low. Hence, apart from the points mentioned above, make sure your payroll software is user-friendly.
We have mentioned some of the essential features you must that your future payroll software must witness. Knowing them will help you stay, one step ahead of your competition by reevaluating your payroll software investment.
Besides aforementioned features, if your payroll software allows you to perform following functions then it is the right payroll software for your organisation :
- Assign salary structure to new joiners in the week of their joining to avoid any discrepancies in their first salary payment
- Configure paygroups and pay components at OU level to avoid any confusions during salary disbursement
- Activate and schedule payroll as per financial year and calendar date to credit salary on time
- Error list can be auto-generated with employee details in case of any deviations in payroll processing
- Accessibility of 3 Dimensional reports to facilitate complete structure of employees’ salary in organisation with all pay components
- Auto deductions of amount for PF, ESI,Professional Tax and other mandatory for statutory compliance
- Proposed investment declarations can be auto approved, reducing the workload on admins
- Data privacy and security of data related to payslips, PF12 BA forms within software
- Auto generated actionable reports for calculating effective costs, CTC trends, liabilities of your organisation
- Compatibilty with multiple software to make payroll processing quick and easy
Your payroll software must assure smooth operations at all three stages:
- Pre payroll activities: Delineation of payroll policies, collecting requirements and inputs for payroll processing, and validating inputs gathered.
- During Payroll Processing: Payroll calculations, approval and disbursement.
- Post Payroll Process: Statutory compliance, payroll accounting, salary distribution, and reporting.
Technology like always is identifying the need and investing and adding new features to it. However, until the companies are not open to embracing the change, the technology can’t do anything standalone. So, take the plunge and invest in future-ready payroll software to reap the benefits and prepare your business and people better for the changing future of work!
Nevertheless, the bright side is that the HR and payroll software companies have anticipated the pain points. So, now, if you choose the right futuristic software, you can optimize the whole payroll process and save your business from being penalized.