10 Most Common Things Should Have In Payroll Module- A Guide

Business has different operations, and HR is one of them. HR and payroll are important operations of the business.

Payroll and HR are connected to each other, however, there are several things to handle in payroll management.

Payroll management stands out as one of the most critical functions within a business.

The HRIS payroll module involves-

• Accurately calculating salaries,

• Tax handling,

• Adhering to various regulations,

• and many more.

The complexity of the payroll process necessitates important attention to detail, as errors can lead to legal implications. Therefore, having a robust payroll management system is paramount for ensuring smooth and error-free operations.

Only the cloud payroll software simplifies payroll processing by automating tasks and providing a user-friendly interface and easy-to-handle payroll operations. By using HR Payroll software, organizations can generate payroll quickly and efficiently, minimizing the risk of errors and delays. The HR payroll module features- automated calculation, the flexibility of access from anywhere, and many more, ensuring seamless payroll management regardless of location.

By leveraging technology and implementing robust systems like Superworks, companies can streamline processes, enhance efficiency, and ensure compliance, ultimately driving growth and profitability.

Things You Should Check Before Considering Payroll Module In HRMS

1. Attendance Management- Time Tracking

Even though you know the payroll or salary of the employee, how can you exactly count pay per day and process salary on time? The only solution is- Real-time attendance!

By tracking employee attendance in the form of working hours, Punch-in & Punch-out, you can easily consider their monthly salary. Attendance is made either manually by any HR Personnel or can be integrated with attendance or HRMS software. Real-time attendance can be tracked both by employees & company’s HR.

The manual process is quite complicated, so the system tracks working hours, and leaves and gives detailed data profiles for all of your employees. This makes everything easy for time tracking and thus payroll process. Furthermore, integrated attendance systems enable you to correctly analyze an employee’s effectiveness in terms of arrival time, working hours, and overtime, among other things.

The cloud payroll software helps keep track of when employees come to work and how many hours they work. It works well with the Attendance management software to make sure everything runs smoothly. With the Superworks Payroll module, managing payroll tasks, from simple to complex, becomes easy. This payroll module takes care of things like employee salaries, bonuses, deductions, allowances, and other benefits.

2. Leave Management

Leave management is integrated with the payroll as if the count of working days the pay will be accurate. This part of the HR Module lets every employee ask for time off directly from the company’s login page. HR staff and manager can decide to approve, ask for a change, or say no to the request in agreement with the employee’s manager. The employee gets notified about whatever action HR takes.

Moreover, having a shared holiday calendar that lets the employee know when to take leave or not, is one of the features of the leave management system.

Workforce management software helps employees plan their time off, and they don’t take leaves unnecessarily. This calendar gets set up by the main administrator or HR staff once a year. Both HR and employees can see it in the HR software and on the employee login page.

See More: Top 5 Ridiculous Payroll Mistakes You Should Stop Right Away

3. Payroll Calculation & Processing

Of course, this is the most important thing for payroll. Accurate payroll calculation and thus processing is the main operation of the payroll module. You need to check the calculation and timely salary disbursement while choosing the payroll software.

If you have a start-up then this may not be your problem, however, when you have a lot of employees, mistakes in calculations and other problems can happen. But with HR and payroll software, you can avoid all those complications because it handles payroll tasks automatically.

The payroll software makes sure your business runs smoothly and without mistakes, which helps it be more profitable and efficient. So, using this software will give you a hassle-free way to handle payroll tasks and improve your business.

4. Salary Slip Generator ( Details & Structure)

Payroll or salary also need proof, and most of the employee needs salary slips. The HR department calculates your salary based on the details they have about your pay and provides the format and particular template.

Once your salary is ready, you’ll get a text message about it. But, that’s not enough. The Accounts team can see your salary in a report and then transfer the money to your bank account using different methods like NEFT, cheque, or cash with the proper salary slip.

Your payslips are made according to the set pay structure. The payroll system lets you set up different rules for how your salary is calculated. Employee Salary slips or payslips mostly include the broken parts of salary such as CTC, deductions, variables, and many more things.

5. Employee Compensation Management

The payroll management module should include a feature for managing employee compensation that makes things easy for everyone involved. It should allow businesses to keep track of when salaries are revised, ensuring that changes are clear and accurate. With customizable salary structures, employers can easily adjust pay to suit individual needs, making planning simpler.

Additionally, the module should offer tools for analyzing compensation data and providing reports and insights that help companies make smart decisions about pay. It should also store all salary history in one place, making it easy for HR teams to access and manage. Employers should be able to set up gratuity settings based on their needs, with a simple calculator to figure out gratuity payments quickly.

Making claims for expenses should be straightforward, with an easy process for submitting receipts. Employee salary should have the ability to declare their own investments, giving them more control over their financial future.

6. Bonus Calculation Management

The payroll module should incorporate a bonus calculation feature that ensures error-free management and timely processing of bonuses. This feature is important for the company’s design bonuses for special events. It is designed to alleviate stress and streamline bonus administration by automating the calculation process.

HR managers benefit from one-click computation capabilities, simplifying the task of processing bonuses and reducing the risk of errors by having these features. Moreover, the bonus calculation feature offers easy accessibility to monthly bonus data and reports, enabling HR managers to retrieve necessary information with minimal effort. Additionally, the module facilitates quick approval of employees’ bonus applications, allowing HR managers to review and respond to requests promptly from any location.

By offering transparency and efficiency in bonus calculation and management, the module contributes to a smoother and more streamlined payroll process overall.

7. Cloud Database Management

A cloud-based data management system for payroll operations offers numerous benefits in managing payroll processes. This feature ensures that payroll operations can be conducted remotely, allowing HR teams to work from various locations because it has a cloud-based data-storing feature. Moreover, you need to consider features such as advanced security measures, encryption, and regular backups, to safeguard sensitive employee information.

The scalability of cloud-based payroll solution makes them suitable for businesses of all sizes, from startups to large enterprises. As companies grow and their payroll needs evolve, cloud-based systems can easily accommodate increased data volumes and processing requirements without the need for significant infrastructure investments.

Another advantage of cloud-based payroll data management is the real-time visibility it provides into payroll operations. Overall, by considering the power of cloud technology for payroll operations, businesses can enhance efficiency.

8. Loan & Advance Management

The loan and advance management feature within the payroll management module offers a hassle-free solution for employees seeking financial assistance. Employees should also benefit from the module, with features like being able to request advance payments or manage arrears themselves.

With this system in place, employees enjoy newfound freedom as they can effortlessly input their loan details and submit loan applications directly through the payroll platform. This streamlined process simplifies the application process, reducing administrative burdens and empowering employees to manage their financial needs independently.

Moreover, the payroll system promotes transparency and clarity by enabling employees to access information regarding their outstanding loan amounts. This accessibility ensures that employees have a clear understanding of their financial obligations, fostering trust and satisfaction within the workforce.

Additionally, HR administrators benefit from the efficiency of the system, as they can quickly review loan details and approve applications with just a click. Furthermore, the provision of auto-deduction streamlines the repayment process, ensuring that loan payments are deducted accurately and promptly.

9. Statutory Compliance & Tax Deduction

The statutory compliance feature within the payroll software ensures that businesses can meet regulatory requirements effortlessly, reducing the risk of errors and penalties. With Payroll software, employers can generate accurate compliance reports for EPF, ESI, and other taxes, providing them with the necessary documentation to demonstrate compliance with legal obligations.

Furthermore, the payroll system facilitates proactive compliance by preparing employees for their tax liabilities and enabling them to declare investments accordingly. This empowers employees to take ownership of their tax planning and ensures that they fulfill their obligations in a timely manner.

Additionally, the payroll module automates the process of deducting TDS for employees falling under income tax slabs, ensuring that payments are made on time and accurately.

10. Report & Analytics

It’s crucial to keep track of regarding payroll information, in this case, reports and analytics work the best.

Leave Statistics

It shows the types of leave employees have taken and the portion of their total leave days used.

Salary Statistics

This information tells you the portion of the total salary each employee receives from the payroll company.

Reimbursement Report

This report outlines the expenses employees have requested reimbursement for and what portion of those expenses have been approved.

Wrapping Up,

Isn’t payday the best day of the month? Every employee is waiting for this day, right? But, managing payroll for a big group of employees with different pay levels and benefits can be tough for companies. Payroll is super important for any business, and it has to be done just right. Getting it wrong could upset employees and cause problems with the law.

Payroll involves lots of tasks like figuring out salaries, dealing with bonuses and taxes, and making sure payslips are correct. It’s a big job that takes a lot of time and attention. That’s where a Superworks comes in handy. It automates many payroll tasks and helps keep everything organized, from tracking attendance to managing bonuses and benefits.