Managing Payroll: Key Benefits of Payroll Software
Are you facing a complicated payroll processing?
Having trouble to do timely salary payment?
Processing payroll is crucial, and yet not an easy task in HR. Payroll mistakes, the wrong calculation, overpay, or even underpay can happen faster than we think. For a moment we may think about the employees for whom salary is the only source of income. When the salary is not paid accurately or there’s a delay in releasing salary, it would affect employees’ financial condition and even the business productivity itself.
The complex processes also make it possible for mistakes to occur, because in doing payroll we need to gather inputs which may come from several departments. We may need the data of attendance, compensation/benefit, contract, compliance, expense claims, and allowance. It would be so much work to gather all the information, make sure the policy, and doing calculation process. One mistake can require the re-calculation which may occur anywhere in the steps and surely will take more time to finish.
To prevent such a thing to happen, we need to consider on how we can do payroll processing smoothly and accurately. Moreover, how we keep our company to comply with regulations. With the development of technology, now company can get a help from payroll management system.
What is Payroll Management System?
Payroll management system is a tool, mostly a software program, which enables your business to handle your employees’ financial record. The difference with manual salary record is that payroll management system handles payment in a hassle-free and automatic manner.
A payroll system involves everything that has to do with employee salary payment and employee taxes and contributions filling. This includes calculating salary, bonus, deduction, payslip generation, and paying taxes to the government.
Benefits of Payroll Management System
Business that has more than one employee must have a payroll system to ensure a consistent and timely payment. It also prevent errors in payroll calculation which impact morale and reflects the company’s financial stability. This process is indeed a complex process. Having a reliable and efficient system will help streamline and centralise the payroll method.
Since everything is automated, we can save a lot of time. We don’t need to enter the information manually in every cycle. We only set it up once then the payroll software will do the rest. Imagine this, the information will be added and deducted in the system for an automatic calculation. Then, HR person only need to check and with several clicks he/she can generate itemised payslip for each employee. This way, payroll management system can reduce the errors that may occur when preparing payroll.
The only thing we probably do is registering new employee for every new hire into the HR and payroll system. A payroll management system also store and manage all your employee information in one place. There will be no need to use any additional tool for this purpose. Moreover, this information stored in payroll management system will be a lot of help for compliance. A company have to adhere the legal framework that require company to maintain various payment and payroll records of the employee and make sure that they comply with the labour laws.