Every organisation spends a lot of time plus effort on salary disbursements. In any business, the calculation of monthly payroll and disbursement of pay checks within a timeframe is very essential. The payroll process is time-consuming and exhaustive.

Employers or managers have to pay sharp attention to the laws of compliance because they cannot afford to make a single mistake. To avoid stressful errors and monthly tension, employers need to use automated payroll software.

Define Payroll Software

A payroll system is typical application software that executes the process of payroll within a short time. It files taxes, checks onboarding and exit of staff or employees, offers in-depth reports and disburses salaries.

There are four payroll segments in India:

● Gross Salary - The employee’s salary before any deductions such as professional tax, employee state insurance, provident fund and recurring deductions.

● Net Salary - The salary that the employee gets after all deductions is called net salary. This also includes basic pay, special allowance, food and transport allowance, HRA (house rent allowance) and leave allowance.

● Ad-hoc - It relates to bonuses, incentives and commissions received by the employees.

● Other Benefits - Many companies provide gratuity, family insurance and other long-term benefits.

Let us now analyse the five crucial features of effective payroll software:

1. Eliminates Mistakes and Saves Time

Human beings can make mistakes when managing payroll. And these errors can prove to be very costly for the company. Unlike humans, automated payroll is fully efficient and there is literally no scope for errors. Businesses can operate the software in mere minutes, which saves a lot of time that can be spent on core business activities.

2. Faster Account Integration

While managing payroll, you exchange information from two sources mainly the accounting department and the HR department. An effective payroll system software can gather this crucial information on a singular platform where all the payroll-related details and data are stored.

3. 100% Accurate Payslips

Without a trusted payroll system, it can be very difficult to manage payroll. Effective management is a storehouse of vital employee records and payroll details. It generates perfect payslips, salary records and incentive lists.

4. Tracing Employee Attendance

The payroll is a dynamic system. Payroll systems can track employee attendance, shift their timings, holidays, sick leaves, etc. In just one click it manages to trace employee attendance as well as calculate their salaries.

5. Maintaining Statutory Compliance

TDS or tax deducted at source is a major part of the payroll process. Employers have to deduct a specific amount of dues as taxes. They include TDS, EPF, ESI and professional tax. Businesses require to deposit a specific amount to different government departments; this is done by the automated payroll system in a few seconds. Other things like the submission of documents and updating the state’s tax policies and government labour laws are also carried out in no time.

Summing it up, an all-rounder payroll software acts as the backbone of payroll management and HR department in every organisation. Even the HR functions like managing employee directories and creating offer letters are facilitated by this amazing software.