Every human resources process is being automated these days. Payroll management is no exception.
It is no news that managing, calculating, and processing payroll has always been one of the most tiring and time-consuming HR processes. It always kept HRs and finance managers juggling with papers or scrolling down spreadsheets.
Fortunately, things are no longer the same for most of the companies out there. Businesses are now relying on technology to make the process robust and efficient. In this blog, we will talk more about it.
Although payroll management is a common term, there are some frequently asked questions about this process.
Let’s dig deeper and find answers to those questions!
To understand payroll management, first you should know about payroll.
So, payroll is a vital document that companies use to carry out routine employee management activities.
It consists of a list of all the working individuals in the organization who get paid for their valuable service.
Payroll offers a clear picture of the total money paid to employees for a particular time.
For the uninitiated, a payroll helps organizations in paying wages/salaries to employees on time. It even simplifies other crucial activities such as income tax.
Now that you know what payroll is, you might have got an idea about payroll management as well.
Now, payroll management is the process of managing employees’ financial reports including salaries, deductions, bonuses and much more.
The process also includes constant checking and updating of the payroll database to stay compliant along the way.
Maintaining a payroll is critical for every company, be it small, medium or large. Payroll management aids a business to adhere to jurisdictional needs.
Ineffective payroll management usually leads companies to costly troubles. From hefty penalties to legal issues, companies can face a host of problems if payroll is not managed systematically.
Not to forget, every step in the payroll management process is equally crucial. This is why HR professionals and finance managers are expected to be extra attentive as well as careful while managing payroll.
Different companies manage payroll in different ways. Out of all, here are the three common methods used by most of the Indian companies:
Excel is one of the oldest payroll methods. For several decades, every company relied on it to manage and process payroll.
It is also the cheapest method. Today, most startups and small and medium-sized enterprises use excel since it doesn’t burn a hole in their pocket.
Of late, using excel for payroll management is passé. The reason being it is error-prone and requires a lot of human intervention.
Due to the same reasons, HR managers are considering and switching to other automated options in the Indian market.
This is also a well-known payroll management method. Now, not every business can afford this method.
For those who do not know, outsourcing payroll is basically relying on a third-party service provider for payroll management.
Companies that have enough resources can definitely choose this method as it saves time for their internal teams.
However, it is not as easy as it sounds. The data related to the payroll is extremely confidential. Giving such important data to a third party is always risky!
Unlike the aforementioned two manual methods, payroll software is an automated solution.
Such systems have acquired popularity after the outbreak of the global pandemic, COVID-19.
Unlike outdated tools/methods, it helps HR executives to manage payroll on autopilot. There are a number of benefits and reasons to choose a payroll management system over other methods.
Apart from the three common payroll management methods we mentioned above, companies also use:
Payroll software is an automated system that is used by HR professionals to streamline payroll in just a few clicks.
Such systems require a bare minimum of human supervision. You will just need to give the necessary input and the software will take care of the rest.
Let’s dive in and know-how such systems benefit companies!
Payroll software can benefit an organization and its HR department in a host of ways. Some of them are as follows:
As we discussed in the very beginning, manual payroll management wastes a large chunk of time.
The best way to save time is to implement payroll software. Since such systems automate every trivial step involved in the payroll management process, HR executives will no longer have to invest hours or days on it.
When we talk about manual tools, HR managers do everything, from filling data to calculating payroll, on their own.
Needless to say, humans are prone to making mistakes. Fortunately, that is not the case with machines and automated technologies. Payroll management systems ensure 100% accuracy, thereby offering peace of mind to both HRs and employers.
When a company will have a payroll system in place, it will not require a number of people to manage payroll. In simpler words, investing in payroll management software saves money on unnecessary hiring.
Since automated payroll solutions ensure accuracy, companies can even avoid costly fines and lawsuits.
All in all, it is a win-win for companies!
When HR managers will save their precious time and energy, they will always be their best selves.
They will never find payroll management a painful process and do it with utmost interest. With payroll software, managing payroll can be super fun for HR executives.
All they have to do is give instructions to the software and sit back & relax.
The best part of payroll software is that most of them come with employee self-service portals.
ESS portal allows employees to do several tasks, from checking their payroll data to downloading their salary slips.
This will increase transparency that in turn will keep employees happy & engaged in the long run.
Last but not least, payroll software can be used anytime, anywhere. This is a big advantage while working remotely or in a hybrid work model.
HR managers will have the superpower of managing and processing payroll from any remote location.
Now that you know everything about payroll management and the right way to carry out this vital process, take a step ahead and invest in a good payroll management system.
Embrace the power of payroll automation and make payroll the simplest task on your to-do list!