What is payroll software, and how does it help your business?
As the name goes, payroll software automates the process of paying a company's employees. Payroll software processes payroll accurately and on time. It encompasses the entire gamut of work involved in calculating the employee's salary, calculating the statutory deductions, arriving at the amount of payout to be done, and ensuring that the estimated amounts are payout to employees.
Functions of a Payroll Software
- Automatically takes care of calculating income, deductions, reimbursements, generating tax forms, and other HR-related reports weekly and monthly.
- Comprehensive coverage of every single aspect of payroll management, including statutory compliance.
- Equipped with powerful reconciliation tools & reports to audit and review before payroll release.
- Provides ready-to-print payslips, information, statements, etc.
Advantages of a payroll management software
- Flexibility and power to handle any salary structure.
- Employers can release accurate payslips instantly without any slip-ups and email them directly to the employees.
- Automatically handles all the statutory deductions for PF, ESI, PT, TDS, etc. and generates the required reports.
- Income Tax (TDS) management with accurate monthly tax statements, Form 16 & 12BA, TDS, Form 24Q, etc.
- Full accountability of payroll processing and other reports like employee headcount reconciliation and payroll transfer type reconciliation (cash/ bank).
Also Read: 8 Definite Benefits Of An Automated Payroll System
Payroll software can also provide additional data and analysis to make payroll information more useful to your business.
- Linking payroll software with time recording
- Using payroll software for reporting
- Storing personnel records
- Using the payroll system to plan future costs
- Disadvantages of payroll software
- Payroll software, like any other IT system, can have specific weak points. Potential problems may arise around issues such as:
- data security, loss or theft
- cybersecurity and fraud
- information access, quality, and control
How does payroll management software help your business?
Useful payroll software takes away all payroll related pains, saves precious time, and gives a considerable ROI as it requires a low upfront investment. Most payroll software companies provide a free trial of almost a month to get a hands-on feel about the software before committing.
Want to know more? Let's understand why SMEs require HR and Payroll Software.