5 Must Know Things Before Switching to Payroll Software! | UBS
UBS

5 Must Know Things Before Switching to Payroll Software!

April 20, 2022
Payroll
Payroll Software

Over the past two years, technology has become an integral part of businesses. All thanks to the novel pandemic, COVID-19.

When businesses were forced to work from home and workforces were scattered in different remote places, employers had no other option but to switch to automated HR tech.

Fast forward to 2022, automation is now a necessity more than an option.

When we talk about automation, payroll software needs no special introduction.

Today, there is no dearth of payroll software for small businesses or large ones. Any and every business can find suitable software from the market.

payroll software for small businesses

In such a scenario, if you are still stuck with outdated and slow payroll processing tools, you are just missing on a host of advantages such as:

  • Saved time
  • Increased efficiency
  • Improved employee engagement
  • Enhanced retention rate
  • Improved bottom line
  • And much more…

All that said, let’s dive into the blog and discuss five important things you must know before switching to payroll software.

Stepwise Guide To Payroll Software For Small Business

What is Payroll Processing?

When the word payroll processing comes into the picture, many people define it as a process of computing the salaries of employees. However, payroll processing is much more than that.

The whole process of processing payroll can be tricky if a person does not know how to go about it.

Payroll Processing

 

That being said, processing payroll is one of the most critical business operations that include arriving at the net pay of employees after adjusting all the taxes, deductions, and more.

To process payroll efficiently, an HR manager should carry out every step systematically.

What are the Different Stages of Payroll Processing?

Stages of Payroll Processing

As we discussed earlier, there are a host of steps involved in payroll processing. They are as follows:

  • Define Payroll Policy

This is the first and foremost step of payroll processing.

In this, companies define their policies and get approval from the management to carry out excellent payroll processing.

For the unintended, the policies we mentioned above include pay policy, leave & attendance policy, and much more.

  • Collect Inputs from Employees

By the title, you must have got an idea of what this step is all about.

To process the payroll accurately, companies must acquire the correct details of every employee.

payroll accurately

Now, different companies ask their employees to provide different details. However, the following three details are must for effective payroll processing:

  • Address of the employee
  • His or her PAN details
  • His or her bank details

Not to forget, companies are supposed to collect these details from employees at the time of their joining.

  • Validate Employee Inputs

Just collecting inputs from every employee is not enough. Companies must also validate the same with respect to their policies as well as approval models.

  • Compute Payroll

This step is all about using the validated details of employees for processing payroll.

All HR managers need to do is put the validated input to the system they use and calculate the payable payroll of every employee.

Need to mention, HR managers and employers should only consider active employees and keep former working individuals away from payroll & compliance payments.

Payroll computation has always been carried out using traditional tools such as excel sheets.

Since working with such outdated tools/systems is time-consuming and painful, businesses have started investing in automated payroll processing systems.

Such systems make this step error-free, faster, and less tedious.

  • Payout

Once the payroll of every employee is calculated, the very next step is to transfer the same to their accounts.

Traditionally, companies relied on the bank to pay out the employee payroll. However, this step has also become super easy with automated payroll software.

With payroll systems, HRs can now pay employees in just a few clicks anytime, anywhere, using any device.

  • Pay Statutory Dues

While processing payroll, companies deduct provident funds, TDS, ESI, and much more.

Companies are liable to pay these payments to the respective govt. departments within a stipulated time.

If not done properly, this step can cost a considerable amount of money to an organization and even lead to legal problems.

  • Distribute Salary Slips & Tax Computation Sheets

Last but not least, the whole process comes to an end when companies distribute salary slips to employees along with their tax computation sheets.

All these seven steps can be completed effortlessly with the use of one of the best payroll software in India.

Top 3 Fair Ways To Reduce Payroll Management Costs

What is Payroll Software?

Payroll software is an automated solution that helps companies to simplify their payroll processing.

From defining payroll policies to sending salary slips, online payroll software makes the whole process faster and easier for HR managers.

It is after the outbreak of the Corona pandemic, that more and more companies in India started embracing payroll automation.

What is the Importance of Automated Payroll Software for Small Businesses?

Automated payroll processing systems come with a number of advantages. Such solutions not just empower HR departments but also save time for them to concentrate on value-adding activities of the business.

Payroll Software for Small Businesses

Many people presume payroll systems only aid HR managers; however, this is not true.

Payroll management systems empower each and every working individual in a workplace.

While it supports HRs to process payroll without an error, it helps employees to do several things on their own.

In simpler words, payroll software also fosters a positive work environment.

What are the Essential Features of Online Payroll Software?

To solve your payroll problems and ensure smooth payroll processing, you must get your hands on the right online payroll software.

This is when a question comes into the picture- what factor makes a payroll system best for you?

The answer is simple- its features.

So, here are the must-have features you should consider while choosing a payroll processing system:

payroll processing system features

If your payroll system has all the features listed above, you will never be left behind the curve.

Note: You can invest in UBS software- a well-known hr payroll software that offers all these features and more.

How to Fix Stressful and Time Consuming Payroll in your Company?

Wrapping Up

Gone are days when payroll processing was all about endless paperwork.

We live in the automation era, and it is high time for every business out there to consider payroll software over other outdated tools.

We hope this blog convinced you to embrace the power of payroll automation at the earliest possible. Go for it!!!

Alpesh Vaghasiya

Alpesh Vaghasiya

The founder & CEO of Ultimate Business Systems Pvt. Ltd. (UBS), I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of UBS is Connecting people, Optimizing the process, Enhancing performance.

Any Query? Reach Out To Us.

We are here to help you find a solution that suits your business need.

Watch a Demo

Get a visual representation of how we work!

Schedule Demo
Get in Touch

Our sales expert is just one call away to meet your needs.

Get In Touch
Start Chat

Have a question?
Chat with Us

Start Chat

Struggling with accurate and timely employee payroll?

Ensure 0% manual payroll errors with UBS.

HR Toolkit

Interested in automated payroll? A free product demo is just a click away!!