Payroll management is all about employees and their salary. Though it does not affect your production or operations directly, it is very important to take care of this HR operation at all levels. After all, employee satisfaction is highly dependent on it only.
Doing all payroll management tasks manually will make it a very expensive operation for any business. Hence, you need an efficient and comprehensive Payroll management System to handle it all. It can help you in automating the payroll process and paying employees accurately.
Do you know how Payroll Management System works and how can it benefit your organization in long-term? If not, then go through this post and understand.
What is a Payroll Management System?
A typical Payroll management system is built to help all types of businesses calculate employee wages, insurance, loan, deductions, taxes, etc., as per their attendance. You can add the company’s holiday calendar into it so that these computations can happen without any mistake and human intervention.
Alongside, personnel information management, leave management, employee bank detail management, HR document management, payslip generation, etc. are some other tasks, which you can do through Payroll software. All these features may vary according to the number of employees in your company, organization’s structure, and business’s needs.
Tip: It is better to choose a feature-rich cloud-based Payroll management System for your enterprise which could handle all your HR requirements. Pick a cost-convenient and efficient solution only.
How Does a Payroll Management System work?
Payroll Management Systems are beneficial for all, be it a small-sized business, a medium-sized organization or a large-sized enterprise. It manages different HR-related operations of your business to help you in running it smoothly.
Here’s what a Payroll Management System do:
Employee Attendance Calendar ManagementPayroll software applications are generally connected to a biometrics authentication system so that employees’ attendance, work hours, absents, overtime, etc. could be automatically fetched from the scanner. It lets organizations set HR rules and add holiday calendar to the system, through which, it calculated the total salary of each employee precisely.
Tax Update ManagementPayroll systems keep track of all the tax updates being released. Your accounting department may miss noticing the new changes or rules, but it won’t. The software will notify you about the revisions in the taxation system so that you could change HR rules accordingly, thereby helping you keep your HR practices and payrolls standard.
Payslip GenerationNot all, but most of the premium Payroll Management Systems offer payslip generation facility. Through your payroll software, you will be able to generate and print payslips for your employees without needing to manually prepare these slips. Even, you can configure your software to automatically email these slips to your personnel.
Leave ManagementPayroll Management systems have a leave management module, through which your employees could send the leave applications to HR. All required details are sent to the concerned user so that further action could be taken. This tool keeps track of approvals, leaves, whether it is paid or unpaid, etc. too. The data of the leave management system is further used to calculate employee salary.
Employee DocketsTo maintain transparency, payroll systems are made capable of maintaining detailed digital records for each employee separately. These employee dockets are visible to that employee and HR team generally. So, everyone concerned person can verify the attendance or payroll data whenever needed.
Document ManagementDocuments, like identity proof, experience certificate, degrees, employee details, tax forms, etc. can be uploaded to payroll management systems. It helps human resource teams to conveniently access employee data whenever needed.
Sending RemindersHumans are forgetful. We forget when to file taxes, when to ask the HR Manager if leave is approved, to login to time tracker, to download payslips, to fill appraisal form, or anything in general. However, Payroll Management systems ease down many things for us. Companies can configure these software applications to send notifications and remind people about pending tasks and leave-related updates.
Benefits of Using a Payroll Management System for your Business
So, now you know that Payroll Management Software can do a lot of HR Tasks, but not sure why should you use it when your HR team can do it all. We’ll tell.
Here are some benefits, offered by payroll management systems:
Accuracy and TransparencyHumans may make errors in payroll-related calculations but Payroll software won’t. And as the whole data related to payroll management is updated in real time, the concerned employee can always check it. It makes the payment process very transparent, increasing employees’ trust in your organization
Speed and Time-savingEverything is calculated in real-time and without the involvement of human resource. The process is lightning fast and saves time for everyone in your organization. It results in speeded up HR actions which are dependent on payroll data.
Quick InsightsEmployees can see multiple role-based dashboard views as per their access rights. It helps them gain deep insights related to payroll, that too, within a few seconds.
Cost-ConvenienceEverything, which a Payroll management system does, could have needed a team of HR professionals. If compared the cost of hiring those professionals and subscription fee of your payroll tool, you will be surprised to see how much it is saving for you.
SecurityThese tools are authentication-based and role-based, unlike conventional paper-based manual payroll management system. So, your employee data is accessible to authorized personnel only.
Besides offering all these benefits and capabilities, Payroll Management Systems are easy to use and can be accessed from anywhere is you are using cloud-based payroll software. You won’t want to miss out all these benefits, would you?