Correct pay for a decentralised or scattered workforce is often a challenge for human resource teams. It puts pressure on them to implement a perfectpayroll managementsystem. To do so, HRs must make a checklist of the features according to their organisation’s operations.
Similarly, this blog lists 10 such features inpayroll management software for you to count on. With these features, you (as an HR) get a head start. It will inform you about the latest features your next best payroll system must have.
Additionally, this listicle will simplify your decisions while shortlisting modern tools likeuKnowva payroll software.
The modernpayroll management tool must integrate salary data with existing employee data. This procedure is the next step in automating the monthly rollout of salaries to employees’ bank accounts.
Following this step would share the burden of every HR person or their team. Required manual hours to calculate salaries and deductions will be less. So HRs can focus on other critical areas to complete for managing and developing their talented staff on time.
Before rolling out salaries on time, thepayroll management software must integrate with the leaves and attendance tool. However, not every company might have an existing tool like that.
Fortunately,uKnowva offers both Payroll and Virtual Biometric systems. That is if you need to automate all calculations and deductions.
This integration will help HRs deduct the right amount from employees’ total salary. So there would be no wrongdoings or mismatches in the salaries at the end of every month.
Another feature to perfect the existingpayroll management system is by integrating with the PMS.
This will direct the system to assign bonuses to employees getting salary hikes or monthly incentives. So employees will start getting what they deserve. That is at every month end with such a system.
HR teams again would not invest hundreds of man-hours in calculating the bonuses. The integrated system can calculate the same on the backend to save time like a pro.
Bank transfers should be reliable and smooth when using apayroll management system. This is an important feature HRs professionals must watch out for in their preferred tool. It will simplify sending out bulk salaries at the end of the month.
HRs won’t have to monitor the salary count or delivery report. The system can alert them about the success of the transaction at once. It can also notify HR about any error incurred during the transaction.
Most importantly, HRs can save monthly hundreds of man-hours with this feature. Later, employees won't depend on the HR person to get their salary credited on time. The system does it all with triggered actions predefined by the backend support.
A perfectuKnowva payroll management tool is one where the employee has self-serving features or a portal. They can check their payslips, download those in different formats, know about their tax deductions, and file their income tax reports.
They don’t need to depend on any HR professional anymore for such tasks. That’s why the self-serving portal saves every staff and manager’s time.
As the industry changes, more features could be added to the self-serving portal. For example, there could be a direct chatbot for an employee to connect with IT, Finance, and Admin support.
They won’t have to disrupt the HR person’s daily work to resolve their IT/Finance/Admin query.
Thepayroll software is a perfect one to trust when it has expense management features too. HRs and team leaders must track their employees’ real-time expenses. These could be the travel, welfare, internet, medical, and other charges incurred.
The system must track these expenses and reimbursement too. Then, it could be included or deducted, as per the category, in/from the salary to be rolled out. This way, regularising each staff’s salary each month gets automated.
HR persons would have to monitor for a final audit before pressing the ok button to roll out the bulk transactions.
HRs and reporting managers must access a perfect payroll management system from anywhere. They will have different mobile devices. It should not become a reason not to access the software when in need.
Rather, the tool must be flexible and modernised. It should allow admins, HRs and reporting managers with the right credentials to access the tool whenever required.
This feature boosts mobility and flexibility of using it for final audits and the generation of reports on demand. Therefore, HR teams can easily use this system at any hour, from any location, using whatever mobile device they have.
Their daily payroll work would not stop. This means the workflow is seamless and flawless.
This is an additional feature. Not every firm would require it. But it’s best to have it in the current or your nextpayroll management software. Because now the workforce can be from anywhere.
With the DEIB-oriented culture, your HR teams might hire employees from different countries. What matters is that the talent recruited must get their salaries on time, irrespective of their work location.
So it’s best to have the feature of converting Indian salaries and salary slips with international currencies. This will allow the foreign employee too to file their income tax return in their respective country.
Admins might need to regularise salary and salary slips often. This can be due to errors, glitches, or fine-tuning of the expenses. Plus, the software must enable HR teams and developers to tweak its functionality to suit the firm's standard operating procedures.
Therefore, the tool must have fully configurable and customisable features. This will give each HR person a delightful experience. Even the employees using theESS portal would feel delighted to use it in the long run.
In fact, companies can strengthen their internal branding with a colour-scheme, templates, and illustrations in the tool.
To be perfect, thepayroll management system must also have a live dashboard for projecting the forecasts. These could be automated or on-demand. It depends on the forecasts and predictions the HR needs based on salary slips, salary amounts, or bulk salary rollouts.
These projects and predictions help HRs and admins to spot errors in the calculations or amounts, if any. They would also know which employee is the most deserving or who is not.
There could be further critical business decisions HRs can make depending on these predictions or live forecasts.
There is no limit on perfectingpayroll management software. What matters is how HRs use and configure the features in the same. The software's overall functionality must make HR and employees’ work lives easier.
It should focus on correct rolling out salaries, predicting and projecting real-time data and analysis, and enabling users to access it anywhere.
These are only a few pointers mapped on the list. The points will grow and evolve to make a perfect tool when there’s a new demand. HRs have to sharpen their observations when it comes to payroll software trends.
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Before the modern advancements in payroll software, salary slips were manual. With a better tool, there is no more HR dependency on spreadsheets. So learn aboutmust-have payroll software features to improve knowledge if you’re an HR or in their team.
This knowledge ofpayroll management tool features will make your life in HR easier. Salaries would be on time, and so would be the slips. Employees would trust you and the process more. Appraisals and audits of employee data can be streamlined.
But let’s know more about what apayroll software, uKnowva, can do for your HR teams.
The latestpayroll software features must include the integration of employee data. HR teams would no longer manually enter the salary-related data by having this feature. Instead, the tool can generate whatever employee data and insights are demanded by the teams initially.
Themust-have payroll software features also include the completion of statutory compliance. Therefore, it should already mention the documents to be uploaded and required as per the Indian laws and regulations.
This way, neither HRs nor employees are dependent on one another. The system should constantly send reminders for uploading their necessary documents. The verification of each employee is easier this way.
Also, then thepayroll software can generate documents like PF, gratuity, payslip, and more effortlessly.
HR teams need dashboards. From there, they learn more about employees than they do in person.Dashboards can easily tell HRs figures that directly impact the employee productivity, efficiency, and payroll generation decisions.
These dashboards should be easily usable, accessible, and configurable. As each organisation has different branding and UI/UX needs, the payroll software must have that flexibility.
This portal will allow automation of publishing salary slips in the employee profiles. So the employee can access, view, save, or download their payslips whenever they want.
With an ESS portal, an employee can also make income tax declarations and choose their tax slabs accordingly.
Some admins might allow that provision to the employees using ESS. Whereas some might not. Company policies matter here in thesemust-have payroll software features. But the accessibility of fully using ESS will only improve user and employee experience at every touchpoint.
Payroll complexity increases when the employee count hikes in the firm. As a result, HRs find it difficult to generate audit reports for all those employees at once and on time. That is why must-have payroll software features must include auditing reports.
The analytics integrated with the system will allow HRs to edit, configure, overview, access, and download these reports on demand. In addition, it makes the process of employee data for auditing purposes easy and flawless.
There would be no time wasted when reports are generated within a few clicks.
uKnowva payroll management tool can integrate with the bank accounts of the company and employees. This way, transferring and rolling out salaries on a fixed date is possible and automated.
HRs won’t have to input employee bank account details repeatedly manually. Instead, feeding the system with bank details once would be enough.
Payroll software features must include flexibility to define salary structures. Then, it should also allow you to create your formulae for calculating salaries in bulk for various employees across functional departments.
As an HR, you must define and configure different job roles and the salary structure associated with each such role. That is a task you have to execute for every new job role in the firm. But it will generally happen only once.
After that,payroll software will initiate the salaries as triggered by the predefined actions from the backend.
Payroll generation for employees directly connects with employee leaves and attendance remarks. That is why the payroll software must integrate withvirtual biometric installed in the firm.
This way, HRs don’t have to manually check leaves allotted, applied, or rejected for employees. The system would do the work and calculate the salaries after adjusting holidays provided to employees for that period.
Later, HRs can check or audit the final payslips before transferring salaries to individual bank accounts.
This could be an add-on to the list of must-have payroll software features. If your company hires employees outside India, this becomes a necessary feature. Even if you have clients outside India, you need this feature.
Then billing your clients and rolling out salaries for international and domestic workers would be seamless. However, if you’re only operational in India, it’s your management’s choice to introduce multiple currencies or not.
This feature will benefit you as your company grows and expands to other countries in the long run.
A payslip format differs for each company. There cannot be only a single format. Companies have different categories at times that directly define an employee's salary. Plus, not every company is giving the same incentives to their employees.
The point here is that there should be a fully customisable feature available to HRs and their teams. Then they can edit and audit leaves (rejected/allotted), over time, and other incentive heads in the payslip. That is for each employee or in bulk.
Later, HRs can fix that format so they won’t have to adjust the template every month manually.
Companies often offer additional benefits to their employees. Those loans, advances, and bonuses. Employees have to pay back interest rates for loans and advances. At the same time, they get credits of bonuses in their salary slip as incentives.
These categories must be reflected in the payslip because it helps calculate tax deductions properly. There could be other types of funds or loans taken by an employee from the firm. Every such bonus or loan interest payment must reflect in the pay.
So we can say it’s an important part of themust-have payroll software features for a growing company.
For a departing employee, a lot of calculation has to be in place – be accurate even. Unfortunately, during these calculations, human errors are possible. That makesfull-and-final settlement difficult.
Butmust-have payroll software features enable HRs to settle unattended leave balances, ex-gratia, PF, bonuses, holding amount, etc. This way, the final month’s salary calculation for the departing employee is easy and seamless.
Final audits can also be verified from the employee data registered in the system. So there’s no chance of any miscalculation, misconception, or misclassification.
12 must-have payroll software featuresare written carefully above. A few cases are also mentioned as examples of the usability of these features. HRs must understand these features before investing business funds.
Their best payroll management tool should be on-cloud and backed with AI intelligence. This way, it’s easy to follow the market and industry trends in terms of payroll & expenses.
HRs and the human resource sector take the payment of salaries for granted most of the time. Unfortunately, that’s one of the significantpayroll horrorsto get rid of when working in a firm.
It can happen when proper salary or payroll system is not in the firm. So salaries become difficult to calculate with multiple revisions and provisions.
Each employee has a different salary bar with various incentives aligned with their job roles, conforming to the company policy. However, it takes many manual hours to verify salary roll-out tasks at the end of each month.
But when HRs delay salaries, employees get upset. They start to lose trust. Eventually, they will look out for another company if this ignorance or negligence continues.
An HR has to face many other payroll horrors and learn disaster management at work.
So this blog teaches you about the top 6 payroll horror stories and examples. Reading those, as an HR, you can understand why it’s essential to roll out anautomated payroll system as soon as possible.
Human errors like misclassification of employees can occur anytime while calculating monthly salary manually. This way, you either underpay or overpay the concerned employee.
This will distort the internal branding of your modern and growing firm’spayroll management system.
It is something you want to stay away from at any cost – be it a big or a small firm.
When employees see that you don’t classify them correctly, they might start misusing that disadvantage. This could happen more in the case of contractual labour workers who get paid higher mistakenly.
Additionally, internal management conflicts can arise if you are underpaying an employee because of misclassification of their role or job title.
Without the enablement ofpayroll software in a growing company, this could be a significant issue. Miscalculating the salary of an employee (s) could be troublesome and loss-bearing for the firm.
If not addressed or rectified on time, the company would start becoming unable to pay the right salaries to their deserving employees. In addition, it leads to massive conflict between employees and the management.
The HR personnels are put on the standpoint to justify the miscalculation mistake. Such people can lose their job if the error is too high or in bulk.
All in all, this case helps no one. On the contrary, it only leads to frustration because, eventually, the company has to carry out the calculations again. This process will be time-consuming and require man-hours.
Employees will start growing disconnected and dissatisfied with this company culture. And we all know what happens when employees don’t trust the company: they start looking elsewhere.
That’s why it’s one of the dreadedpayroll horrors to get rid of. However, that is possible with a stable, reliable, and dependableuKnowva payroll management system.
Calculations are easy and automated. Therefore, there is less scope for human bias or manipulation using this tool in growing and modern Indian firms.
Another one of the payroll horrors to talk about is the absence of leaves and an attendance management system.
HRs might not have a factual idea about the leaves allotted, applied for, and rejected concerning their employees. That occurs when there is no system to track the live attendance and work hours invested.
In that case, calculation of salary is nearly impossible. Because without knowing the leaves and hours an employee worked for, how can a company roll out their salaries? If they do so, there will be a huge salary pay gap. As a result, some employees might receive over and underpay.
Then HRs will be responsible along with the management. But, again, it will be a disrespectful experience for employees. They won’t want to work in such a company.
Their only solution or alternative is to look for other jobs. This increases the attrition rate and creates a negative image for the company in the market.
Payroll or salary generation and roll-outs have to be on time. This is the first expectation from the employees out of the company when they join the firm. When payroll is delayed, employees feel betrayed and confused.
They are not sure what is taking the company so long to give employees their salaries for the hard work of that month. If this negligence continues, even employees would take a backseat and not perform well.
Gradually, they will want to switch to a company with a better policy for such episodes ofdisaster management at work. However, if there is any delay because of a technical error, employees must be notified in advance.
But this error must not occur every month. Otherwise, it shows that salaries are delayed deliberately. This ignorance and unprofessionalism will put off employees, which leads to them leaving the company sooner than expected.
Employees are clocking in for long hours because they either find profit or purpose in the assigned task. No one likes to work extra hours. They all have a personal life to maintain.
But if the company is not paying them for overtime, there is again a great level of disappointment amongst employees. This becomes one of the most talked-aboutpayroll horrors, which are difficult to rectify if the branding is impacted.
So companies must have auKnowva payroll management system. This tool helps automate incentives and overtime hours.
That is possible the payroll system is integrated with the hours clocked in. And employees are working extra hours, they will be paid for the extra time as well.
Every hired employee or contractual labour has taxation liabilities if they are earning regular income above the given exempted tax slab. The company has to help them deduct taxed amounts from their salaries and directly file the same to the government.
But without modernpayroll software, there might be miscalculations. If that happens, it’s again one of the most unprofessional payroll horrors. The final obligation to sort out the taxation would be on the employee.
Their CIBIL score could get hampered if the taxation amount is not filed or deducted properly.
Eventually, employers too have to participate in regularising their employees’ taxation amount. Because negligence and ignorance of calculating the right taxable salary won’t lead to negative internal branding.
Payroll horrors are not easy to solve. However, they must be addressed and talked about on time – even in small and growing companies. Because if HRs are unaware of these mistakes, their employees will suffer.
If employees suffer and receive aterrible workplace experience, they won’t act productive or remain loyalists to the brand.
Thus, it’s best to have anautomated payroll system in advance in the company. This helps remove all possible human errors, including bias, fatigue, miscalculations, and misclassifications.
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