What are the Features of Payroll Software?
Introduction:
Payroll processing can be difficult and time-consuming, as it involves a series of repetitive work like calculating payrolls, enrolling employees into the company’s payroll, ensuring spotless compliance, and maintaining payroll records. So, nowadays, HRs prefer to use payroll software to manage the complete life cycle of payroll operations end-to-end. This software helps HRs to keep track of payroll-related information and access it any time from anywhere. As a whole, it helps companies organize, manage, and automate the entire process of salary payment.
Why do you need payroll software?
Payroll processing, when done manually or using conventional spreadsheets, can be inaccurate, complicated, and can lead to miscalculations. Payroll software eliminates these adversities by automating and digitizing the entire process.
Here are a few reasons why your business needs payroll software:
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Eliminates unintentional mistakes during data entry
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Helps in tracking payroll expenses by generating all reports allowing you to track expenses down to the last rupee
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Helps in availing tax deductions and increases tax compliance
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Helps you integrate with HR and accounting platforms, bringing everything under the same roof
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Customize your company’s pay schedule
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Extremely secure in maintaining years of crucial information
Features of payroll software:
- Eliminates errors, increases accuracy:
The payroll software is unbiased and never permits tampering, and also helps you avoid unintentional errors in data entry. You also have the facility to customize the software to your requirement, add features, and upgrade the software whenever necessary. This way, payroll software increases accuracy to a great extent.
- Seamless employee onboarding:
The payroll software helps you easily add or eliminate employees from the payroll and eliminates the tons of paperwork otherwise involved. You can add as many profiles as you want, change information, and access them at any time. It is also helpful at times when an employee transfers to another branch, as the payroll software enables data migration too.
- Payroll on a single click:
Efficient payroll software will help you automate the entire process, including salary computation, tax calculations, data entries, payslip generations, and bonus additions – all on the single click of a button. This way, you can save an immense amount of time and manual effort.
- Online salary payment:
The payroll software will help you make online payments of salary at the right time. It also allows you to customize the date of salary crediting based on your companies policies and employee requirements.
- Leave and attendance management:
No matter how much your employee strength is, the payroll software helps you manage their attendance and calculate their salary based on their attendance. This feature will be extremely beneficial when an employee terminates from his job, as the software automatically calculates his final settlement based on the unclaimed leaves and other benefit plans.
- Pre-formats tax reports:
As you already know, the payroll software helps you integrate the three important sectors of any business – HR, accounting, and payroll. By considering and cross-checking data from these sectors, the software generates pre-formatted tax reports that will ease up your work. The software also permits you to share these documents with your team of auditors for verification.
- Employee self-service:
With this payroll software, employees have the provision to download their payslips, tax documents, profile data directly without having to contact the concerned authorities. They also can upload documents from their side, like claim reimbursements and proofs, directly. The software also comes with a notification feature that alerts employees on approaching deadlines.
- Easily customizable:
Another great feature of the payroll software is that it is easily customizable to suit your business’ needs. You can customize salary, allowances, deductions, reimbursements, and benefit plans according to your organization’s order of employee hierarchy. You can also add or eliminate features whenever your business calls for it.
- Extremely secure:
One of the reasons why several businesses prefer this software is mainly due to its provision of extreme security. All the data transferred via this software is encrypted from end to end. All your reports have the facility of password protection and deny access to third-party users.
- Administers compensation:
The payroll software also strengthens your overall payroll management strategy by helping you administer the entire process of providing compensation, bonuses, etc. to your workers.
Advantages of the payroll software:
Payroll software has many advantages that make it a basic necessity for businesses to function seamlessly. Some of them are listed here:
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It increases productivity to a great extent
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It reduces errors and improves accuracy
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It saves time and energy
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It is extremely cost-efficient
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It eliminates manual labor largely
Frequently asked questions:
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What kind of payroll software should I opt for?
Look for cloud-based software that comes with a mobile app. This way, you will be able to integrate the data of all your branches and access them from anywhere at any time. The mobile application will help your employees follow and access their personal information from anywhere, whenever they wish to.
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What are the types of payroll systems?
The following are the four types of payroll systems that are widely used:
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Internally managed payroll system
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Professionally managed payroll system
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Payroll System Agencies managed payroll system
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Software managed payroll system
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How best can I ensure the security of my information?
Make sure to read the company’s privacy policies and statements before committing. Most importantly, ensure that your choice of a service provider is compliant with international standards of security like an ISO/IEC 27001 security certificate.
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When is the best time to start implementing the payroll software in my company?
You can start implementing payroll software at any time of the year – mid-year, mid-month, or mid-month. Make sure to get a free trial from your service provider before committing.