Payroll Management : Software

Payroll management software is a type of software that assists and pay for the employees for time worked. It drags the paychecks and direct deposits the fund into the employees' accounts. It also automates, designs, systematize and centralize payroll process.

What is : payroll?

Payroll is the list of employees in a company. It also refers to the amount of money employers pay to their employees. when employees get paid by the company then it comes under the payroll management system.

The payroll management system is a combination of different processes due to a large number of calculations and statutory compliance. That is why you need a stress free solution that is accurate & very secure in terms of data information.

The payroll management system includes the following functions

• Calculation of the wages of each employee as per the contracted payment basis.
• Calculation of bonuses & deductions as per employees' works during the period.
• Calculation of TDS, social insurance, deduction of pension & other pay-related commitment.
• Management of holiday pay, sick pay & other entitlement & other support payment.
• Maintaining all records of the pay-related amount.
• Maintaining payslip components like basic, variable pay, HRA, TA, and LTA.

There are various methods available to do payroll for your business,

that can be:-

• Excel based payroll management system
• Payroll outsourcing
• payroll management software

Many businesses go for excel based payroll management when they are at the initial stage as this method does not involve any cost but it has its inherent limitations like high chances of calculative errors, difficulty in adding & removing of employees from payroll list and chances of duplicate data and lapse of entries at times.

In payroll outsourcing, companies go for an external agency to take care of their payroll function as they don't have a dedicated person for payroll management. It is a time taking process as the company needs to share the employees salary data & other pieces of information to the payroll service provider. Since payroll is a crucial function and businesses want full transparency & control over it, this is the reason they often hesitate in payroll outsourcing.

As discussed, for running successful payroll, you have to ensure that payroll coming from different sources should be a timely & seamless manner. There are many advanced payroll management software available in the market that not only automates payroll but also works for leave and attendance management, hr management, ESS (employee self service) portal. Depending on the size of your employee you can opt payroll management software for your business.

About Smart HRM

Smart HRM is the management of an organization's workforce or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture and ensuring compliance with employment and labor laws.

If you have any queries on payroll management, you can visit contact-us and get an answer to your queries.