Features and Benefits to Look for in a Payroll Management System

Introduction of Payroll Management System?

The payroll process typically includes calculating employees’ salaries, recording payroll transactions, and also determining and paying taxes. A payroll process may sound easy but is very complex.

A company must have a time tracking system that can accurately reflect the working hours put in by the employees. The tracking of correct working hours, overtime, etc can help employers with accurate payroll processing at the month’s end. 

So, with so many tasks to be performed in a payroll, manual processes can be tiresome and chaotic. This is where the payroll software comes into the picture.

So, what is payroll software? What features does payroll software provide? How can payroll management systems benefit your organization?

Being the HR or the manager of the company, you might have the above questions hovering in your mind. So, you will get the answers to all your questions here in this blog.

Let’s Go Ahead!!

What is Payroll Management System?

Payroll software is a cloud-based payroll management system that integrates, manages, and automates the payroll process in an organization. It is responsible for calculating payroll, handling compliances, disbursing employees’ salaries, generating salary slips, maintaining the integrity and security of the workplace, and more.

Features of Payroll Software?

Do you still use the manual payroll process at your company?

How do you ensure the accuracy of payroll with manual processes?

Payroll software can guarantee accuracy. There are a lot of features in the payroll management system that can help you with accurate and easy payroll. Let’s discuss the features in brief.

• Easy to set up

Payroll software that takes a lot of time to set up and is complicated is not the one you should go for. The purpose of the software is to make the job of the HRs easy so make sure that the system you choose is easy to set up and understand.

• Customization

Since every company’s requirements and salary components are different, customization is a must. Good payroll software must be easy to customize as per your company’s requirements. It should also be able to personalize the payroll functions for different levels of employees.

Payroll Management – Definition, Importance, Procedure, And Many More!

• Automated Systems

If they still overload your Human Resource Managers, there is no point in investing in the payroll management system. Good software must ensure that your HR department is freed up to make other decisions and better policies.

An automated payroll management system lets the HR department work a lot faster and more efficiently.

• Compliant Systems

While calculating payroll, labor laws and other regulations are also important to be considered. The payroll management system you choose must incorporate all legal regulations and statuses. It is also possible that your company has some compliance requirements, you also need to consider those requirements.

• High level of security

The primary security feature that is required in payroll software is database encryption. For restricting highly valuable information like data files, and employees’ personal information; the system must have password protection.

A payroll management system like UBS is a comprehensive software that also lets you focus on access controls. This takes care of confidential information to the highest degree. The implementation of such software will help companies prevent fraud cases at an optimal level.

• Zero Errors, High Level of Accuracy

The best thing about payroll software is that every task is carried out following a high level of skill. While payroll management system doesn’t completely replace the requirement for human participation, they are far less error-prone. Once the system is in place, it makes sure that every task is carried out correctly.

• Fully paperless

Let’s face it!! It’s the 21st century and moving toward digitization is more of a necessity than a luxury. However, it is a sad reality that many organizations are still paper-based processes to perform payroll-related activities. Along with wasting one of the precious resources of the planet, they are making their offices look outdated and cluttered. A paperless office certainly helps a lot, and modern offices should be simple spaces with items organized aesthetically. This helps the brain perform properly.

Payroll Software – What is the Cost? 2023 Pricing Guide

• Employee Self-service

Employee self-service allows your employees and managers to access any pertaining information at any time using any internet-enabled device. This makes it easy for the companies to keep the employees engaged while also providing transparency on payroll-related information. Employee self-service has become a necessary feature for advanced HR and payroll management systems. 

• Real-time Insights

In order to assist you to visualize the current situation, it is advantageous if your payroll management system can present real-time insights via insightful graphics. By acting on those insights and making the necessary corrections, you can keep your business running smoothly and prevent any minor problems from becoming major ones. In addition to this function, any payroll software must be able to generate custom reports, and it goes without saying that contemporary payroll administration systems include flexible report production modules.

• Customer Support

At some point in time, the HR executives might require support. A payroll software provider must always be ready to offer support to the customers and also ensure that the software does not experience any downtime.

Types of Payroll Software for Businesses?

As we know that payroll is a complex process. It requires the involvement of various departments and a huge amount of data manipulation. Similarly, due to its complexity, errors are likely to creep in, and being a repetitive process, payroll can be monotonous.

Hence, it is recommended to implement a payroll management system at your premises. There are various types of payroll software for small businesses and big enterprises according to their requirements.

Let’s take a close look at the various types of software that your company can deploy: 

• On-premises

On-premises payroll software is used when organizations are more concerned about the data being handled, like FMCG sectors, eCommerce, BFSI, government undertakings, etc. In such business sectors, people are still anxious about the security provided by web-based software, therefore, prefer in-house servers.

In such cases, the software is developed in-house and deployed on the servers. As a result, the company needs to handle both the hardware and the software, thereby increasing the payroll processing cost, which is to be borne by the company itself.

Things to Consider Before Buying Software For Payroll Management?

• Outsourced

In some cases, the company entirely wants to remove the burden of payroll-related woes, therefore, they outsource their services to the most suitable payroll software provider. Now, this payroll management system provider handles all the activities related to payroll processing for a predefined amount, while the company completely allocates its resources to its core business tasks.

In this case, the company is granting the service provider complete access to the employee data; as a result, they must make a sensible choice in terms of the software solution provider. In this instance, it makes little difference to the business whether the service provider manages payroll manually or with specialized software. Their only concerns would be the security of their employee information and the timely and error-free payout of salaries.

• Cloud-based payroll software

If you need a “set it and forget it” strategy, cloud-based payroll software is perfect. You just use the services offered by an online cloud-based payroll processing system in this online payroll system and pay for the same utilizing a subscription model. Since the software provider is responsible for all software and hardware maintenance, it becomes incredibly simple to update it as well as add and delete users.

The only prerequisite is an internet browser, therefore the end user will be able to access it from any location using any smart device. Due to the additional protection provided by the high-level encryption included in online payroll software, one need not worry about data theft either.

What benefits of the Payroll management system?

• Error-free calculations

“To err is human.”

Above mentioned idiom states that human errors are natural. One of the main disadvantages of a paper-based payroll process is its vulnerability to costly errors.

Human Resource Managers find it difficult to manage such a huge workload and run a detailed analysis of so many employees. So, cloud-based payroll software can handle payroll processes much more efficiently than humans can. 

• Time-effective

Time is of great value to any business. You don’t have to stress about manually entering lengthy pay stubs and payroll computations when you use payroll software solutions.

You must first enter the information about the employees and the payment system your business uses. The software will handle further processes and even perform an update.

While the payroll management system handles all the time-consuming tasks, your firm can concentrate on achieving critical business goals.

If you’re having trouble managing your company’s goals, you may often choose the services you want using HRMS or HR Software like UBS.

• Data Security

The introduction of technology has increased the security standards for software. Reliable HR and Payroll software like UBS ensure that all the shared data is encrypted and saved securely on its servers. 

• Cost-effective

Juggling several duties within a tight budget is a difficult undertaking while running an SME (Small & Medium Scale Business).

You can cut costs on handling payroll manually by using payroll solutions. Professional services that can assist you to manage payroll and boost returns can help your organization reduce expenditures.

Companies like UBS provide high-end cloud-based payroll software for small businesses that handle accounting procedures and are connected with employee attendance and HRMS software.

So here is your chance to start saving money and making more investments in your firm.

Streamline Your Payroll Process – Easy Steps to Follow

• One Click Payroll

Another characteristic of payroll software that contributes to its high efficiency is the distribution of employee wages. The employees would have the option of having checks printed, having their salary put into their bank accounts, or using payment cards. The same may be said for the payroll and HR software, which can be programmed to deliver payslips to each employee’s registered email address.

There are many other benefits of cloud-based payroll software, click here to read more.

Classifying the salary components

Since we are talking about payroll software and employees’ pay, we need to understand the various components of the salaries of employees. We must comprehend the fundamental elements influencing your paycheck and all of its components. Knowing these elements will enable us to understand why it is so tedious.

With a user-friendly interface and streamlined processing, an all-in-one payroll software assists in assuring timely, accurate payments while also lowering associated expenses and increasing the overall effectiveness of your payroll management system. It is particularly helpful for small firms because it reduces the time and effort needed to pay employees on time.

An employee’s salary, as is commonly known, is made up of earnings, deductions, and various other elements for statutory compliance. To truly appreciate the efforts made by the HR department to execute payroll processing and distribute them accurately for each salary cycle, one must, however, have a greater understanding of these components.

For a better understanding of the salary components, let us simplify it into 4 categories:

• Earnings – Basic Salary, Gross Salary, Net Salary

Here Basic Salary + Net Salary = Gross Salary.

• Allowances and Bonuses – Dearness Allowances, House Rent Allowances, Hostel Expenses Allowances, Child Education Allowances, Travel Allowances. and Other Allowances
• Deductions – Employees’ Provident Fund, Provident Fund, Tax Deducted at Source, Employee State Insurance
• Statutory Compliances – Bonus, pension, Gratuity.

Click here to know more about the salary components and a detailed salary structure.

Payroll Software for the Win!!

Payroll Management Systems can be very complicated. They do, however, greatly simplify the life of HR administrators and executives. Spend some time learning about payroll management software so you can clearly understand what different software providers have to offer.

Despite the fact that there is a lot of software and some of them offer services at extremely low prices, be sure to base your decision on the quality, dependability, and level of experience your software provider has.

To learn more about one of the greatest payroll management system solutions, look for what UBS has to offer. Book a demo to know more.