When you are spending every minute of your day excelling at your job, why should your payroll software act as an impediment? One of the most critical and essential functions of Human Resources - the payroll is also one of the most complex. Being the biggest cost centre, one mistake could lead to a range of repercussions varying from an unhappy employee to heavy losses, to tarnished brand reputations.
A great payroll system should be 100% compliant with all the state and local laws, should be easily configurable, be error-free and automate most of the payroll processes so that you can focus on what matters the most - which is employee success.
Before we delve into how you can buy a payroll system that empowers you to excel, let’s take a quick look at what it involves.
According to Investopedia, payroll is “The sum total of all compensation that a business must pay to its employees for a set period of time or on a given date,” which includes salaries, wages, deductions, bonus, and net pay. As a business function, it involves:
Having said that, payroll is more than just processing paychecks. It is a complex process that involves tight collaboration between multiple departments like HR, finance, compensation and benefits and HR Ops. But all the payroll complexities can be handled easily if you have the right software built on advanced technology that is intuitive, user friendly and integrates easily with your other systems.
While the pre payroll stage is about gathering all the inputs from different departments and validating them, the post payroll stage takes care of adhering to statutory compliances and paying out to the employees and the concerned authorities like EPFO, IT Department and ESI etc, plus reporting.
Payroll softwares, or better still, an HRMS that provides a payroll module is the best solution. It integrates well with other departments, hence makes payroll input gathering easy; accurately calculates payroll for thousands of employees; makes payout easy because of seamless integration and creates insightful reports.
An absolute must and also a challenge that is almost always on top of every HR’s mind - is the organisation up to date with all the statutory compliances? Non-adherence to the statutory laws leads to levying of heavy fines on the organisation.
Ask any HR and they will agree to the massive pain involved in gathering all the necessary inputs like attendance, leaves, reimbursements, overtime, etc. With this data scattered across systems and teams, payroll often suffers loss of data, inaccuracies in processing, and a lot of back and forth.
In the absence of an intelligent payroll system, most HRs resort to using excel sheets that may seem deceptively simple but are fraught with dangers if handled inexpertly. Even a simple error in processing salaries often brings down the trust and morale of the employees significantly.
Traditionally, the flow of data between various facets of HR vis-a-vis payroll have not been smooth and seamless. There are often delays in data transmission, which is inaccurate or outdated. Similarly, the inability to pull up accurate reports at the right time renders any analysis futile leaving the leadership blind to gaps in what is the biggest cost to the company.
Solution, you ask? A cloud-based, well integrated payroll software that mitigates all the above challenges and more. Let’s take a look.
An intuitive and smart cloud-based payroll software eliminates dependency on excel sheets, automates the mundane tasks and simplifies the complex activities. Here is what it does for your business:
So, what are the critical choices that you need to make before choosing a cloud-based payroll system?
There are several situations in which the choice between opting for an end-to-end HRMS or best-of-breed solution arises. When your HRs are swamped with manual payroll processing and are looking for some relief. When your organisation has grown to a stage where you need to automate your payroll functions. Or when your existing technology just isn’t cutting it anymore.
While both choices have their pros and cons, statistics show that most organisations are veering towards adopting the unified solution.
As written in a Bersin by Deloitte article, Ten Disruptions in HR Technology in 2015, 33% of companies have 10 or more HR systems for their employees to use. But many want to ditch the best- of-breed solution model to make tasks easier on users.
The same article stated that 47% of companies will replace their multiple HR systems for one unified solution to consolidate vendors. It also mentioned that 67% of software buyers will select a system based on its ease of use rather than the quality of its features.
Let’s take a look at both types:
|Features||Integrated Payroll System||Independent Payroll System|
|Reporting and Analytics||Single reporting with common database||Multiple reporting tools and requires data aggregation from various sources|
Are you sitting on the fence about outsourcing or doing the payroll in-house? There are several factors you need to consider before deciding.
If you have decided on what type of payroll system to choose, the next question to look at would be - what should you look for in a payroll software?
Now that you know the top 5 features your payroll must have and are considering buying a payroll software, here is our ready-to-use RFP template.
Simplify your payroll process with Darwinbox’s integrated, accurate, scalable and secure payroll management system. With an option to choose between payroll as a product and as a managed service, you can perform all your payroll related functions in a few simple steps. Get automated inputs, generate statutory reports and analytics, file returns, do salary structure configuration, compliance management and much more without worrying about data leak. With a central locking system, clear audit trails and a highly configurable platform, businesses are leveraging our end-to-end payroll management system for efficiently running one of the most critical functions of their organisation.