For any organization, payroll management is a complicated and tedious task. Payroll is not just about paying salaries to the employees, and it includes complex calculations and following of statutory compliances according to the Companies Act. While processing the payroll of an employee, some of the listed compliances are mandatory.
Payment is not below the minimum wage limit- for workers and unskilled labor their salaries should be according to the statutory compliance or the heavy penalties will be levied on the organization
Maternity benefits are covered- women staff should be given maternity benefits before and after childbirth
TDS must be deducted - The employer should deduct TDS according to the Income tax act
ESI, PF, medical is calculated - for employees earning less than 15,000 or less, ESI fund is maintained to provide medical and other cash benefits to them and their families. PF is a mandatory contribution, and medical facilities are compulsory
Professional taxes- must be calculated before tax computation
Employees’ Deposit Linked Insurance Scheme- this is a death benefit coverage for employees
Gratuity- The amount is given by employers if the employee leaves the organization after completion of 5 years of service
All organizations, be it small or big use software to carry out these complex calculations. There are challenges that the payroll department might face due to which huge penalties might be levied on the organization.
- Errors while entering data
- Ineffective payroll processing system
- The absence of automatic update
- Insecure network
- Irregularities in payslips
Due to these innumerable problems, most organizations are looking at payroll automation, and a cloud-based one is an efficient solution for it. These software’s are designed to handle -accurate calculations, automatic updates, payslip generations, increments, tax compliances and many more, depending on the complexity of the
payroll management software.
Most Start-ups have some initial hiccups and acquiring a cloud-based system is a more efficient choice. Online payroll software streamlines the working of any organization.
- As most Start-ups are working on a tight budget, this is a more cost-effective option
- It can be accessed remotely
- Employees can also access their information if needed
- Pay-outs can be carried out on time as processing is faster
- Calculation of attendance, travel expenses and reimbursements are carried out accurately, thus avoiding the loss to the organization
- Compliance with government rules for payroll calculations
- Auto-generated payslips and updates
- Historical records of payrolls can be maintained for a longer time so that they are easily accessible
- Secure maintenance of confidential data against theft and damage
- Accuracy in calculations and keeping track of benefits and deductions
- Auto-generation and filling of data for tax filing
- Accurate calculation and deduction of ESI, PF, and gratuity
- Avoid data entry errors
- Avoid tedious work, increase productivity
Investing in the best payroll software can bring more efficiency, productivity, and accuracy of any Start-ups payroll system. It assures:
Motivated Employees, since they know, they will receive their pay on time
Efficient Maintenance of accounts, so there are no discrepancies
Consistent integration of leave and attendance management
Components of HRMS
Manual management of records is no longer followed in any organization. HR software solution is here to take care of that problem.
For an organization, its people are the primary assets, and to manage these assets; the
HR systems were brought into place. The feature of HRMS is not just limited to the management of the organization workforce and payroll. These systems play a more diverse role –
- Scouting for new talent
- Recruitments
- Payroll Management
- Performance Reviews
- Facilitation between the management and employees.
These systems suit the business requirements of every organization. Some are even custom designed meet specific requirements. This software is not just a record of numbers but critical details about people, thus they are highly secure.
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The software is used for the following purpose
Human Resource Management- This consists of management of personnel, staffing, compensation and generation of reports for every employee of the organization. Predominantly optimizing the staff productivity. For the success of every organization, it is crucial that its workforce is kept highly productive and satisfied.
Manage Recruitments- uploading job openings to job portals, organizing interviews, choosing a qualified candidate, forecasting upcoming job opportunities in the company – all these fall under this category. The software generates offer letters and updates the details into the system once the employee is absorbed into the system.
Management of Payroll- HRSM handles the complex calculations of payroll and compiles it as per industry standards for each employee. This ensures uniformity in calculations for tax, bonus, increments, etc.
Manage Attendance and Leave- The software automatically updates the attendance and leave taken by each employee and shows it in real-time. It tracks if the employee is carrying out a pattern of coming late and leaving early. If an employee frequently applies for leave, it will also send an alert to the managers, ensuring higher productivity.
Helpdesk Management- Helps in providing support for clients and personnel. Helpdesk also tracks the sale and purchase of office equipment and stationery.
Claims and Travels- The software keeps an updated record of any medical or other claims made by the employee so it can be adjusted while calculating his payroll. Travel claims are also monitored to keep a check on the processing of inflated bills.
Manage Company Projects- all the projects that the company is handling can be monitored using this software. This includes- timesheets, personnel allotted per project, monitoring project profitability, billable hours of the resources and project duration.
Client details- All the details of the clients are included in this software, such as- Client name, registered office, contact details, statutory details, etc. It also manages billing details.
Track Performance- Performance reviews of every employee can be done using this software. This is important for appraisals, promotions, and hikes. Competency parameters can also be tracked through it.
Training and Upgrading- Organizing periodic training so the employees can upgrade themselves. This helps in improving productivity and morale.
For HR Software in India, organizations are opting for cloud-based systems, as they are more cost-effective, user-friendly and more reliable. These softwares also come with excellent technical support and even regular upgrades so that the system is kept updated.
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