If you are running a business with multiple employees, you must have heard the word ‘payroll’ thrown around a lot. And why not? After all, payroll is an essential process for any business as it entails compensating employees, one of the most essential resources, timely for all their hard work. Even though the process sounds unchallenging, it is nothing but that. Payroll is very complicated as it involves multiple calculations, including Tax deducted at Source (TDS), Employee Welfare Fund (EWF), basic salary, HRA, and other allowances. Many companies fail to complete this task on time without any miscalculations. Thankfully, payroll management software is here to save the day. Through this article, we will learn everything there is about payroll software so that you can understand its utility for your business. By leveraging this guide you can make an informed decision when buying a payroll application for your organization. Let’s begin!
What is Payroll Software?
Payroll software is a Software as a Service (SaaS) that allows HRs and other stakeholders to automate payroll and streamline employee payments. Payroll software ensures that companies stay compliant with all the financial regulations while delivering accurate and speedy results, enabling the stakeholders to concentrate on other aspects of business that add more value
What does Payroll Software do?
It performs three primary functions. They are:
1. Payroll Automation
Payroll automation minimizes human input, enabling organizations to improve transparency and uniformity. All the calculations are performed using data collected by integrating with other HR processes like attendance and recruitment, ensuring there are no mistakes. Automating payroll improves the efficiency and productivity of an organization, enabling the HR department to release payments on time and concentrate on other activities that increase business value.
2. Tax and Compliance Management
Taxes, in general, are a bane to any individual, but the ever-changing corporate tax structure is even worse. On top of that, if you add the different taxable amounts in separate regions where your employees might be working, then it becomes a mammoth task for any accounts department. To stay compliant and stay up with payments, you need to employ more than a few accountants to fend off dire consequences like fines and audits. A payroll solution not only auto-updates the latest changes in tax regulations, but it can also calculate the tax contributions of thousands of employees instantly with minimal human involvement. Consequently, ensuring that your company stays efficient and secure without multiple accountants on your payroll.
3. Report Generation
For any business, it is essential to come up with ways to make its processes better. Payroll software provides easy-to-understand and in-depth insights that can be leveraged by companies to learn how their payroll expense is spread out. These timely generated reports can be utilized by companies to cut unwanted expenses and prepare for the future.
Benefits of Payroll Software
Here are some of the benefits of a payroll solution:
Quick and Easy Access
As many payroll software solutions are cloud-based, you can access it from any location. Additionally, the software doesn’t require any installation or configuration. It allows HRs to use it in a couple of hours, saving time while reducing software deployment errors.
Companies can provide user-specific access using payroll software solutions, allowing employees to access data according to their roles. Payroll software also utilizes other methods like TLS (Transport layer security), which establishes encrypted links between all the networks, eliminating data theft.
Before cloud-based software, individuals could only purchase software and use it on-premise. To upgrade the software application, HR managers had to buy a newer version and install them again. The modern payroll management software can be updated as soon as the new version is released, reducing the effort and costs involved substantially.
Scalable & Adaptable
Modern payroll management solutions are more scalable and offer integrations with other cloud-based applications. Moreover, they are extremely adaptable to any changes. This feature allows organizations to change locations and adapt to mergers without thinking about regulatory changes.
Considerations to Make While Choosing the Best Payroll Software for Your Business
Ease of Use
What is the point of getting software if you don’t know how it works? Before buying payroll software, make the stakeholders find it easy to operate so they don’t have to consult IT and HR multiple times.
Many payroll software providers forget about their clients after selling their products. Any amount of software downtime can be harmful to your bottom line. While choosing a vendor, make sure they offer instant support and troubleshoot any issues that you might face.
Before purchasing the solution, ensure that the vendor has previously served companies of your industry and size. An inexperienced vendor might not have the guile to fulfill your needs, resulting in a negative experience.
The payroll software you choose should be able to integrate with other business and HR functions of your organization, including accounts and attendance. This ability is essential as it streamlines business processes, allowing companies to have oversight over everything.
Last but not the least, make sure that you get a solution that allows you to personalize fields and other facets of the system according to your needs without the involvement of a software expert.
Payroll software allows you to become more dynamic as an organization. It fulfills the need of the current market, where a plethora of workers, including part-time, freelancers, and wage workers, have joined the regular employees. Additionally, the ability to roll out instant updates makes your organization adaptive to any future trends. If you are searching for the best payroll software, look no further. NYGGS offers an innovative payroll solution that can take care of all your needs, that too, at a reasonable cost. Connect with one of our specialists to learn more about the benefits of payroll software for your organization.