When it comes to business management, there are a lot of micro and macro activities to keep track of. Macro refers to the company’s long-term vision, such as strategy, sales, revenue, and cash flow. In contrast, micro refers to the 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, etc.
Before going further, let’s see how to choose one and the key benefits of a payroll management system:
Payroll Management Software for small business
The key benefits of payroll management software for small businesses are as follows:
Employee morale
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.
Statutory Compliance
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.
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Employee data
With payroll software, you can store and manage employee information anywhere. The payroll management system makes it easy to retrieve information for any queries related to employee data.
Time savings
As everything is automated, you will save much time on 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.
Plan
A payroll management solution can help plan staff costs and other expenses, which allows you to plan your business operations in a better way.
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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 should be easy to set up without any technicalities. Employee onboarding should be smooth and seamless. The system should be intuitive to figure out anything in one click.
Payroll Generation
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.
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Run-on the cloud
The system should be able to run on the cloud, allowing you to access the solution from anywhere, anytime. 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. It would help if you were allowed to configure your company’s salary structure.
Compliance
Payroll software enables you to auto-calculate Provident Fund, Professional Tax, ESI, and Income Tax deductions. 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.
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Tax filing
Payroll software should allow employers and employees to file tax declarations directly from the payroll portal effortlessly.
Reporting
The solution should allow you to generate multiple reports, such as reconciliation reports, based on your requirements.
Self-service portal
Most solutions have an employee self-service portal allowing employees to track their salaries, tax deductions, and other information. The self-service portal will enable employees to update their addresses and contact information.
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Expense claims
Employees should be able to claim out-of-pocket expenses or any other spending that requires reimbursements.
Integrations
Your payroll service should offer seamless integration with pre-existing solutions to quickly transfer data between the systems. It is essential to check this compatibility before finalizing the payroll product.
Biometric attendance
Choosing a solution that supports upcoming features may cost you more, but it is a good option.
Bottom line
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.
