When it comes to business management, there are a lot of micro and macro activities to keep track of. Macro refers to the long-term vision of the company such as strategy, sales, revenue, and cash flow while micro refers to day-to-day operations of the company.
Some of these micro activities can be handled effectively using payroll management software. The software can streamline administrative tasks such as generating pay-slips, calculating tax deductions, and more.
Before going further, let’s see how to choose one and key benefits of payroll management system:
Payroll Management Software for small business
The key benefits of payroll management software for small business are as follows:
Ensuring employees are paid in a systematic and timely manner will reinforce the faith in the company. This boosts employee morale and motivates them to perform better.
This is about the legal framework your business should adhere to. Every company that hires employees and pays salaries must comply with labor laws. Payroll automation ensures your business complies with employment and labor laws.
With payroll software, you will be able to store and manage employee information from one place. Payroll management system makes it easy to retrieve information for any queries related to employee data.
As everything is automated, you will save a lot of time carrying the payroll activities. You don’t have to enter the information for every cycle manually. Once the setup is done, the software will handle the rest. Payroll software will save a lot of productive hours while keeping track of every hour.
Payroll management solution can help plan staff costs and other expenses, which allows you to plan your business operations the better way.
What to look for?
The payroll software you select must feature some essential components, irrespective of the size of your business. When choosing the payroll software, it has to include the following features:
Setup and onboarding
The payroll software you consider should be easy to set up without any technicalities. Employee on boarding should be smooth and seamless. The system should be intuitive so you can figure out anything in one-click.
The solution should allow you to process payroll accurately for each payment cycle automatically. This should generate customized payslips and enable direct deposit into employee bank accounts.
Run-on the cloud
The system should be able to run on the cloud, giving you the flexibility to access the solution from anywhere, anytime. This way, you can easily administer timely payments while working on other tasks.
Salary components & Structure
The solution should support different salary components such as earnings, allowances, deductions, and reimbursements with varying pay grades. You should be allowed to configure your company’s salary structure.
Payroll software enables you to auto-calculate deductions such as Provident Fund, Professional Tax, ESI, and Income Tax. Most of these tax laws are dynamic and change from time to time. The system you choose should adapt to the changes and allow you to make precise calculations.
Payroll software should allow both employers and employees to file tax declarations directly from payroll portal effortlessly.
The solution should allow you to generate multiple reports such as reconciliation report based on your requirements.
Most solutions have an employee self-service portal that allows employees to keep track of their salaries, tax deductions, and other information. The self-service portal will enable employees to update address and contact information if required.
Employees should be able to claim out-of-pocket expenses or any other spending that requires reimbursements.
The payroll service you select should offer seamless integration with pre-existing solutions so the data can be easily transferred between the systems. It is essential to check this compatibility before finalizing the payroll product.
Choosing a solution that supports upcoming features may cost you more but is a good option.
You are the one who understands the business better. You can determine what your current business needs are. Having payroll software takes a lot of stress and administrative burden off, so make sure you take a wise call.
Charles harden is a freelance content writer at SutiHR, who frequently writes articles on Cloud Computing/SaaS, HR, Business and ERP trends.
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