Managing employee payroll processes manually can be very daunting for HRs. This is why today many organizations are opting to automate their systems when it comes to payroll management. It not only makes the process simpler and less time-consuming, but only spares the need to outsource the processing tasks to a bookkeeper and saves costs.
Whether you’re starting up or looking to upgrade your existing payroll systems, investing in a payroll process, whether it’s a software or a payroll service would be an ideal choice. The requirement is to process payroll calculations, payroll tax statements, year-end taxes and more for your company. Moreover, it handles deposits and withdrawals for your employees, withholding and pay garnishments, and new-hire reporting. This mainly sets you free from all the hassle of managing employee salaries and allows you to focus on the other important aspects of your business.
Payroll processing softwares are available in many forms. While some are integrated HR and payroll software, ERP, or accounting systems, others are independent payroll solutions. Before committing to any of these solutions, consider the following factors to ensure the best value within your budget. This will guide you through various aspects that can help you reduce costs, save time and boost employee engagement.
Complex Payroll Structures
Large organizations with a high number of employees tend to have multiple hiring processes. They hire employees on a contract, internship, or full-time role. With their varied pay scales and benefits provided by the company, it’s difficult to manage different payrolls and have detailed analysis on the payroll structure.
An automated cloud-based payroll management system would help in processing the salaries in a structured way, where you can have every employee payroll data structured by salary level and do all other sorts of operations including pay claims, arrears, salary revisions, and generate salary reports for analysis.
It is very crucial for an organization to adhere to tax laws imposed by the government and with the constant updates and changes coming along. Non-adherence could lead to hefty fines and to avoid that most companies hire an accountant to regulate the compliance in their payroll structure. However, these last minute hassles can be avoided with an HRM software that is equipped with current tax information of all the states from which you can manage the payroll data, statutory deductions, tax deductions, HRA, etc. of your employees.
Time-tracking / Geotagging Feature
With the ongoing remote work culture in the country, it’s impossible to track each and every employee’s time invested in work and the location they’re in. Choose an HRM software that can perform time-tracking paired with an application that lets employees record their time devoted every day. This data must be automatically transmitted to the manager for approval based on which they can initiate the payroll process for the month.
Similarly, tracking of on-site and remote employees is very much possible with the geo-tagging feature many HRM software are offering now-a-days. It allows managers to know their employees’ location during timestamps improves time tracking and prevents time card fraud
Size of the Company
Generally, for small organizations, it’s more suitable to outsource their payroll requirements as it’s cheaper to opt for a payroll service provider than an in-house accountant or an HRM software. However, there’s always a chance that your company might scale and hire more employees down the road, which means that you need a system that’s also highly scalable, irrespective of your company size and handles the processing of complex payments and systems effectively.
Smart Payroll Management System
Imagine how convenient it would be to have your payroll reports ready by your payroll software and getting notified on your smartphone or computer. A good automation payroll software can make this possible by doing all the reporting and analysis work in the background to provide you exactly what you need. The technology also manages to spot errors and help humans avoid errors in the future.
Hence, we have established that the selection of a payroll software depends on several factors including the number of users, number of employees, and the variety of features and benefits a software has to offer.
Bizex is a cloud-based HRM software that helps HRs manage everything from Employee Onboarding, Leave management, Asset Management, Attendance Management, Payroll Management, and much more. The Payroll Management Segment lets users automate their entire workflow in a structured way, eliminating any superfluous data entry. It complies with the standardized HR policies, conforming with tax and regulatory changes. The software lets HRs manage all the salary levels and revision-related data. They can generate the payroll summary and report for each employee as and when required and also handle various processes including arrear payments, pay claims, blocking payroll, etc.