As an organisation grows bigger, the more people it needs to continue and expand its operations. It then becomes more challenging to keep track of the employee payroll. You don’t just keep their records; you have to make sure your people are paid timely and accordingly.
To address this, managers use payroll software to manage their employee payment records. It is an application that tracks all payments made and to be made to employees, from the moment they are hired to the time they leave the firm.
There are many different types of payroll software, but they all serve the same purpose of managing and automating employee payment. They are created by third-party technology solutions companies that focus on enhancing business operations.
Most payroll software systems come with the following features:
- time and attendance tracking
- automatic calculation of gross salaries
- automatic deduction for taxes, insurance, and retirement contributions
- processing paycheck deposits
- generate tax forms
- deduct wage garnishments (for instance, the employee has an outstanding loan)
Today’s payroll software systems also include self-service capabilities wherein employees can view and download payroll checks online or on their mobile devices. In business-processing organisations (such as call centres), employees can go online to log in their attendance, check and use their available leave credits, or file disputes for input errors in their payroll records.
Some payroll software applications can be configured by the HR staff, so that they can adjust accumulations, place workers in different pay groups, and balance periods and balances.
There are also systems that integrate data analytics modules, allowing HR administrators to create custom audit reports, and track payroll spending trends.
Benefits of payroll software
Using a payroll software system offers peerless benefits to both company/organisation managers and employees. These include:
- Increased employee retention – using a payroll software system promotes transparency of employee records. Employees who get to see and understand how their salaries are computed, including all the deductions and available leave credits they can use, have more trust in their employers. They don’t feel neglected, and that their rights as members of the organisation are respected. The transparency of payroll records alone is more than enough reason for employees to stay for the long-term.
- Reduced risk of human error – another benefit of using a payroll system is that it reduces the possibility of human error. The automated computation of wages not only saves time on the side of the HR team; it also provides an accurate calculation of salaries and deductions.
- Increased revenue – using a payroll system not only allows the company to pay their employees accurately; they are also assured that they are acting in accordance with current tax laws. If you are handling the company HR, using this software saves you from wasting time correcting payroll errors and avoiding penalties due to inaccurate bookkeeping.
- Improved bookkeeping practices – using a payroll system promotes better bookkeeping practices. Every transaction made is put on record, including the date and timestamp. Accurate and organised transaction records become handy during internal and external auditing. They can also be used as a reference when planning for company expansion or downsizing.
- Easy customisation – having a payroll software system in place allows you to make quick changes, such as correcting disputes or updating employee information. Some payroll software systems have also become cloud-based; users can now update payroll information from the comforts of their homes provided that they have clearance to access the system.