Regardless of the size of a business, manual payroll computation is quite time-consuming. You’re also at risk of making errors like entering incorrect data, leading to miscalculation and attracting non-compliance penalties. This and many more are some of the reasons businesses are switching from manual to automated payroll solutions.
There is no doubt that payroll software will save you from a lot of stress; however, one question employers and payroll managers will find themselves asking at some point is if they need payroll software.
To answer this, let’s look at some of the core features of a payroll management system.
Features of a payroll management system
1. Automatic payroll computation
One of the primary functions of a payroll management system is to run payroll, regardless of the number of staff, cutting down on the risk of human error.
2. Calculation of tax and other statutory deductions
Miscalculating tax or any other deduction will vex your employees and put your business at risk of receiving sanctions from the government. A good payroll management system, like SeamlessPayroll, helps you do the heavy calculations for all forms of deductions accurately.
3. Payslip processing and distribution
Effective payroll management covers more than just paying employees; it also includes accountability to your staff. With a payroll software, you can automatically create and send payslips to all your employees for their reference.
Read: The ultimate beginning-of- year payroll checklist
4. Reporting and analytics
With the reporting and analytics feature in SeamlessPayroll, you can visualize your payroll reporting data easily, track payroll expenses over time, and identify trends.
With adequate reports, you’re able to avoid taking a shot in the dark and instead make informed decisions.
5. Time and attendance integration
To make the most of your payroll software, it should be seamlessly synced with your time and attendance software. This sync allows you to make payroll changes based on the company’s time policies and the employee’s time and attendance history.
6. Employee data management
Data management is an important feature to consider when selecting a payroll management system for your business.
The HRIM feature of HRMS platforms like SeamlessHRMS helps store information in a central cloud, so the problem of storage space is eliminated, giving you access to a centralised database. This sync allows data to be consolidated across board, making automated payroll computation seamless.
7. Disbursement of funds
After running the payroll, the next course of action is disbursing funds to employees. Human error, like an incorrect account number or bank details, could cause a delay in payment. A good payroll management system, like SeamlessPayroll, allows the admin to make the payment from the software with ease which eliminates the chances of incorrect payment as the process is automated.
8. Software integration
A good payroll management system should be adaptable and sync with an HRMS and accounting software. This integration will help to ensure information uniformity across the board, reducing duplication of data.
9. Employee Self-Service (ESS)
If HR managers have to attend to each payslip demand from different employees, then no other productive activities might get done. A good payroll management system should have the ESS feature to empower employees to perform some tasks like request for their payslips, make loan requests, or request for leave.
Read: Payroll best practices for small and medium-sized businesses
Benefits of an automated payroll system
1. It saves time and energy
Time-consuming and monotonous tasks are reduced to the barest minimum with a payroll management system. The consolidated database saves time and energy that could have been wasted on data retrieval and entering the same data multiple times.
Also, some employees are paid hourly for service rendered; manually adding up timesheets can be time-consuming; however, with an automated payroll, hours worked can be run within a short time frame. An automated payroll system that is integrated with your time and attendance software allows employees to enter their time card information themselves. This data is then automatically transferred to your payroll software.
2. Saves resources
An automated payroll software helps the HR department and the business to save costs concerning payroll computation. Some automated payroll systems have a limited number of times payroll can be run in a month; however, with SeamlessPayroll, you can run payroll multiple times in a month – this benefit provides good value for money spent.
3. Data accuracy
Using a payroll management system helps to minimise errors and double entries of employee data. This standard of data accuracy makes an automated payroll a better substitute for manual computation. Accurate data also empowers the HR manager to give informed recommendations on employee‘s’ benefits packages to the business management.
4. Data security
A breach in sensitive data can cost a business its clientele, funds, and reputation. SeamlessPayroll has a work-approval feature that empowers the administrator to control employee interactions with HR data through the dashboard. Additionally, the activity log of SeamlessPayroll allows the HR manager to track and monitor actions taken on the system so that data is protected, and the possibility of internal fraud is checked.
Did you know that SeamlessPayroll lets you run payroll in minutes? Explore the features of SeamlessPayroll and start enjoying the benefits of an automated payroll today.