What is Payroll Software?

A successful business run is the outcome of mutual understanding between an employee and an organization. An organization expects the employee to work to their fullest and an employee in return expect a decent and standard incentive package from organization end. 

Payroll management revolves around managing the employee salary in an organization. The timely issuing of salary and other allowances to employees, deducting the loan amount and other cuts from employee salary, everything comes under payroll management of an organization. The absence of an effective payroll management system or payroll software leads to a huge loss in the company in terms of resources. 

Talking about payroll management, any companies with more than one employee should use the payroll management system. The payroll management system handles the salary of employees along with the filing of the employment taxes. Tracking the working time of employees, calculating wages, delivery checks, paying taxes to the government etc. comes under the payroll management system.

Paying the employees on a regular basis has got some advantages. The moral of the employee will be increased and also a firm representation of the company’s financial stability will be built. The payroll management is a mandatory process since there are strict norms put forward by the government on employee handling and their payment.

The payroll management deals with various financial records of the employees such as their salaries, wages, bonuses, deductions, net pay and more. An employee can get access to it and keep the record of these things in order to submit before the legal authorities and also filing taxes like income tax. The payroll management has got a high impact in the business sector since it is very much helpful in lowering the tax bills. 

The main benefits an organization acquire through an efficient payroll management system are;

Ensuring employee morale: Delayed payrolls are always a demotivating factor for an employee. To some employees,  their only source of income will be their salary and any delay in getting paid can lead to great turbulence in their life cycle. The consistently delayed pays thus can demotivate the employees to far extend and reduce their performance, which eventually takes the company in a bad direction. Secondly,  delayed payments question the financial stability and credibility of an organization or company, which makes the situation even worse. To avoid all these ordeals an efficient payroll management system can be used. Thus the morale of the employees is kept intact.

Reduced tax bills: When the payroll management is consistent and appropriate according to the government norms,  it helps in minimizing the taxes. If any misleads or irregularities in payroll,  it eventually results with huge fines and legal complications. 

Managing a payroll system is crucial for an organization, no matter what constitutes their size. In the case of start-up companies, they are likely prone to more errors because of lack of knowledge in accounting, money management, laws regarding payroll etc., to get rid of all these troubles a payroll management software can be made use of.

The main reasons to go for payroll management software are;

1. Time-saving: The offline handling of the payroll is a very risky and hard task. The accountant will have to go through a lot of procedures to keep track of every payroll information. Moreover, the method is error prone and very time-consuming. By using the payroll management software all these tasks can be made very easy and easily accessible.

2. Accurate handling of payroll information: The data with regard to travel allowance, house allowance, compensations, deductions etc. can be added to payroll using the payroll management software. Optimization of paying periods, benefit addition etc. also can be included in the payroll management software.

3. Saves cost: Once the software starts to handle the payroll management system it reduces a lot of human errors and thus allows in cost-cutting. There is no need for investing any additional hardware for managing the system which also helps in saving the cost.

4. Security is high: The human managed payroll won’t be as secure as a software-managed payroll system. The payroll management software can provide good security. All the employee data are kept secure and confidential. Employees also can log in to their accounts and view their working hours, deductions, balances and other benefits.

5. Process optimization: when the payroll management is done under human supervision, the process can be very boring due to its repetitive nature and finally errors will start to pile up beyond the normal level. When payroll management software is used, this problem is erased. Also, the data are given to the software are stored in the online database. Thus data can be recovered even if the computer breaks down. All you need to do is use your login details to avail.

The payroll management system of Open HRMS software is intuitive and robust. The important functions include,

Employee contract: 

Where the end user can create the employee contract and configure it. Details like contact duration, salary advantages, work permit etc. can set here. The user can easily modify the contract.

Salary rule and salary structure: 

Using the salary rule various salary components like DA, HRA etc. can be calculated. Using the salary rule different salary structure can be created.

Timesheet integration: 

Where the user is enabled with the provision of creating contracts based on the timesheet.

Payslip batches: 

Using the option, the end user can generate the employee payslips who falls in the same salary structure.

Thus if you are looking for a solution for your payroll management, Open HRMS is your answer. Here we are providing a demo link http://demo.openhrms.com 

of the open HRMS software for your reference.