What exactly is Payroll Software?
Processing payroll can be a tedious job for any business, as calculating routine salaries to taxes of employees is a headache. The frustration for handling these tasks can be avoided by implementing an automated payroll software for your business organization. Most of the HR technology and specialized companies of Payroll, often sells this software as an on-premise system. Sometimes it is also included with the HR Module.
As we all know that, the on-premise system needs infrastructure and huge investment, but the solution to it is “Cloud-Based Payroll Software”. It does not require any infrastructure or a huge investment. Cloud-based payroll software is an online software which can be accessed from anywhere, anytime.factoHR is one such HR and Payroll solution which provides cloud-based Payroll salary Software.
It significantly speeds the process, reduces error and enables HR department to pay more easily and quickly as compared to paper-based Payroll or on-premise system.
Payroll software is the automatic process of paying salaries to contingent (Freelancers), hourly and monthly salaried persons. It is a type of software that helps HR department in compensating employees for the work done. It also helps you in calculating salaries based on hours logged in time and online attendance system, and after that, it draws salaries or direct deposit funds to employee’s account. Along with that required deductions and taxes are also calculated.
How to choose Payroll Software? Let’s learn with 4 easy steps.!
1. Understand your Payroll Cycle and choose best software provider for your company.
To decide the payroll cycle/payment schedule is the primary responsibilities of the HR department. So, keeping your different requirements/choices in mind, factoHR provides you five essential pay schedules which are as follow:
– Monthly: If you have employees who are paid on a monthly basis then, you can select that pay schedule. Here you have to pay 12 times per year to your employees.
– Semi-Monthly: If you have employees who are paid twice a month then you can select this pay schedule. Here you have to pay 24 times per year to your employees.
– Bi-Weekly: If you have employees who are paid after every two weeks then, you can select this pay schedule. Here you have to pay 26 times per year to your employees.
– Weekly: If you have employees who are paid on every week then, you can select this pay schedule. Here you have to pay 52 times per year to your employees.
– Daily: If you have employees who are paid on a daily basis then, you can select this pay schedule. Here you have to pay 365/366 times per year to your employees.
To select the correct Payroll Software based on pay schedule will help you in paying your employees on a timely basis.
2. Verify Leave, Attendance, Performance and Travel Expenses.
After selecting the payroll cycle/pay schedule, you have to check that whether your payroll system is integrated with the basic details of employees, Leave Management, Attendance Management, Performance Management and Travel Expenses Management. factoHR provides you fully automatic and integrated Payroll System which has proven to be the best HR software for efficiently executing hr’s duties and responsibilities. At the time of enrollment only you have to add all the details of the employees in the system. After that when you have to process the payroll, all the information like the performance of employees, travel expense, attendance and leave will be fetched automatically and you have to verify the details to process payroll.
3. Managing statutory compliance.
Statutory compliance is the legal framework, where most of the organization’s time and money are being spent on ensuring the laws. It is necessary to manage all the statutory compliance of employees like Minimum Wage, Income Tax, Provident Fund, ESIC, Gratuity and Professional Tax of the employees at the time of payroll process.
– Minimum Wages: By configuring minimum wage with your CTC and linking it with your payroll, reduces the problem of penalty at the time of the statutory audit.
– Income Tax: At the time of Payroll, calculating income tax and auto deduction of TDS becomes easy through Payroll Software.
– Provident Fund: Payroll software helps you with calculating PF for employees at the time of Payment and also generates the ECR Challan automatically.
– ESIC: It is a health care benefit given to all the employees.
– Gratuity: Gratuity is the retirement benefit provided by the government after the completion of five years in the same company.
– Professional Tax: At the time of Payroll process, calculating PT according to the salary slab and state of every employee, reduces the penalty of corporation tax.
If you are doing all the calculations through paper-based or a payroll system which is not fully automated then, it will be too tedious work with a lot of errors. factoHR provides you with the integrated Payroll system which calculates all the statutory compliance automatically along with payroll process.
4. Ensure your Payroll Service.
When you are using any software, you will be getting some updates at some interval, which shows that they are updating their application as per requirement and for the ease of their clients/customers. If you are using on-premise payroll software, updates in laws or employee self-service will not be provided to you. While in cloud-based payroll software, you will get employee self-service which ensure them for their regular and proper pay. The cloud-based software automatically update their laws when required which helps you in the appropriate deduction of taxes.
factoHR is one such Payroll Software and HR solution which provides you with a cloud-based payroll software at an affordable price with a lot of features and the best customer service.