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Important Things You Should Understand About Payroll Management

Important Things You Should Understand About Payroll Management

Unless you are not HR or you are us, you probably might not be much interested in payroll management. However, if you are employee you must understand some payroll related things. Firstly, people thinks it is very boring and complexive topic. We make this post to make you understand these terms in a easy and interesting way.

Now, What Is Payroll?

Payroll is the process of paying company’s employees. Payroll process includes collecting list of employees, tracking hours worked, calculating the pay of employees, distributing salary on time, and record the track of thatNow, What Is Payroll

Methods To Be Used For Managing Payroll

Companies are using the most popular 3 methods for managing payroll. These methods are depending on the size of the organization.

  1. Payroll Management Using Spreadsheet & Google Forms:

If there is a small organization, you can use this method to maintain payroll activity. Payroll management through spreadsheets and Google forms is the convenient way in the early stages of operation. Considering that, you have to use the math formulas to count the net salary of an employee manually.

This is mostly used in budget restrictive companies as this is a cost-effective method. Under this method, the HR manager collects essential information such as name, address, PAN number, and bank account details from employees manually whether on paper or Google forms. After doing this, the finance department calculates net salaries manually and pass to the payroll department to distribute them.

This is not the ideal method for a company with an outsized number of employees. Because the after salary is validated, they have to ensure whether it is a sufficient amount in the bank or not. Also, if something is calculated wrong manually, you may find an error, and the business could run into payroll troubles with penalty issues, compliance issues, or trust issues as well.

  1. Outsource Payroll To Other Companies:

Some middle-sized organizations mostly choose this method to streamline their payroll activities. They give all the information regarding company employees, such as attendance, salary, leaves, reimbursements, etc to service providers. They will handle all of the necessary calculations mandated by law.

Though this method completely takes away the burden of payroll processing from the company, it comes at the worth of heavy fees. It can hamper confidentiality. Because this method relies on a third party to manage payroll.

This problem can be solved with the arrival of automated Payroll Software in India.

  1. Use Automated Payroll Software

Technology takes care of all processing in an automated payroll system. Automated cloud software automatically calculates salaries after factoring in statutory deductions, leaves, bonuses, and other factors. They are way good in terms of, security, confidentiality, speed and accuracy.

Good payroll software like UBS takes care of salary with PF, and return filing for TDS, PT, and ESI. It is transparent, accurate, and time-saving as well, as it is reducing computations and manual efforts. Cloud software is advanced in the sense that it automates payroll computation. It also works as an all-in-one solution and reduces error chances.

Challenges You May Face While Processing Payroll

There are many factors in the payroll process and you may face challenges while managing it. Though it is an easy task if you can’t consider the proper process it can become a highly complex task. Here are some challenges you may face while processing payroll:

  1. Company Coordination

Getting all information of employees together for payroll management manually is complex. It is time-consuming and coordinating with all is quite difficult for HR as well as small company owners. Payroll management includes gathering information from different sources such as finance, HR, expense, and also attendance record.

  1. Employees Moral Understanding

Every employee desires a good salary, and their living depends on this. If there is some mistake and you can’t distribute salary on time then they may feel bad.

  1. Strict With Payroll Laws

You must consider all the laws regarding tax components, statutory computations, and establishments. It’s mandatory for every organization. If the organization makes some mistakes related to that, it may face some severe issues.

  1. Stick to Old Payroll Methods

Several companies that prefer old methods for processing payroll find major challenges in that. Considering that, they choose conventional ways and face problems to manage the records on different excel sheets and lots more. It might be challenging for payroll managers to adopt cutting-edge technology.

Cloud Payroll Software Is Beneficial To Reduce Complication Of Payroll Processing

When you find these kind of challenges you may handle and eliminate errors by using automated cloud HR payroll software. It saves some time and makes the work easier for you by automating complex tasks.

  • Accurate Payroll Calculation: The automated payroll system reduces the chances of mistakes when calculating it. This can minimize the complexity of manual computation.
  • Self Service: Most of the payroll software in India provides a feature to manage your profile with required data. It can reduce the documentation of salary submission and protect you from chaos.
  • Increase Productivity: Integrated cloud payroll system can help to save the time of employees by delegating routine tasks with self-service portals. Every employee can submit their payroll information, thus productivity and efficiency can be increased.
  • Easy To Integrate: Payroll should be integrated with leave management, time, attendance management, and other data as well. Automated cloud software provides the feature for easy integration with other software and system.
  • Secured Tools: As you enter your detail by yourself it is good for security. Also, Payroll software helps to give specific permissions to every employee for more security.

At Last,

After reading this post everyone can easily understand Payroll management system. You can easily understand, payroll is more than calculating paychecks. It is set of the process which requires proper knowledge. As a business function, the overview, steps, methods are involved in completing the payroll process.