9 Great Practices To Streamline Payroll Process In India
Superworks
10 min read
January 31, 2024
“We need to streamline the payroll in our facility, right away!” There are numerous HR managers that you can find throughout the nation and even in the world, saying this sentence over and over again. Because a payroll process in India and other countries in the world is and always will be the most crucial aspect for organizations of all kinds.
And for that reason only, these HR managers stay so concerned about doing the payroll processing, because they just can’t goof up with it! So, they keep seeking a solution, like a guide to payroll which can help them streamline their payroll processing and even the post-payroll activities, [just like HR payroll software]. Hence, they keep asking the questions like;
“What is payroll processing and what are the great practices to improve it?”
“What are the measures that one should follow while doing the payroll?”
“Which software is best for doing payroll & compliance with ease?”
However, there can be more questions regarding payroll management in your mind just like these HR managers. And depending on the list of employees they have, many carry doubts about how they can boost effectiveness in their business.
So for those, we would like to mention that with dedicated HR payroll software for payroll services in India, organizations can literally enhance and automate their entire payroll. And for all those questions of yours, we would like to say, worry not, because today, all of them will be answered here!
So let’s start the blog, and let us present the best practices to leverage payroll software for enhanced payroll processing in India.
What kind of gross salary are you [the employee] earning? And what about the taxes and other compliance-related things, how would you do that? To ensure that only payroll processing is the best solution that the company uses for the employees!
Simply put, the process of payroll processing is about doing the payroll [both pre-payroll activities and post-payroll activities], taxes and compliance! And with the help of this process, we can easily calculate Tax deducted at source TDS, and even the Employee State Insurance ESI! for the employees!
However, there are several types of HR and payroll processing in India, that can help you calculate the net salary, gross salary, provident fund PF and every payroll component! So, let’s have a look at all those various methods of payroll process in HR…
Methods of Payroll Process in India
From the early times to these modern times, there have been various methods of processing payroll, and by using that this payroll is getting paid accurately and on time. But there are various payroll factors that you need to take care of if you are doing your payroll process in India, so let’s see how we can do that by using different methods.
1. Spreadsheets
This is one of the old methods of doing payroll, where the HR managers or the finance department keep filling the sheets manually to complete the payroll process in India. But the truth is, this traditional method is far away from being streamlined, and ends up with so many errors, and payroll delays.
2. Outsourcing
Outsourcing payroll is like fruit to employees because, through this process, none of the employees have to experience those payroll delays, which they were having with manual payroll. In addition to that, this method of doing payroll comes with the least possibility of payroll errors because the payroll outsourcers aka human resource payroll services providers are the experts for doing that only!
3. Automation
Automation is a gift to all the payroll doers because by using it, we directly rule out all the possibilities of errors and even the delays that we were facing in manual payroll! Here with the help of computation, we can easily automate the complete processing of payroll to significantly boost payroll efficiency with the least possible manual efforts.
Payroll Processing in India: 9 Best Practices You Should Follow
To employees, to HR, and to all the managers processing payroll, we want to share the 9 of the best practices, so please have a look at them. Because once you have noted down these, then we are quite sure you will do the just with “HR payroll roles and responsibilities!”
1. Centralize Data
Payroll software brings together the various aspects of employee data such as salary, allowance, deduction and reimbursement amount, bank details, at source TDS declarations into a common platform.
With centralization, there is no redundancy and discrepancies arising due to manual data entry by various finance, HR, and admin teams. Centralized data helps you streamline the pre payroll activities.
Manual calculations are reduced through configuring automated payroll calendars in software customized to schedule types and periods. The calendars of payments can be configured for daily wages, weekly, monthly, or hourly calculations. Scheduling automatically results in more accuracy and less work.
3. Configure Payroll Elements of Salary Structure
The payroll component comprises of basic salary management, HRA conveyance, tax deductions insurance deductions, etc. These elements can be configured in the software according to compliance rules for accurate computation. Having the ability to configure updates quickly and be able to add new elements efficiently is good. You can enhance the process of payroll calculation with the help of the software for payroll processing in India.
4. Automate Salary Calculations
Salary calculation automation based on leaves, absences, etc. overcomes inaccuracies and accelerates the process. Salary and reimbursement procedures based on policies and pay schemes can be computerized.
5. Enable Employee Self-Service
Online employee self-service portals for tasks such as viewing pay slips, downloading forms, updating details, and submitting requests enable transparency through the reduction of manual work. Leave, reimbursement, or other requests can be automatically approved based on workflows.
6. Integrate Attendance Systems
By integrating biometric devices or attendance software with the payroll system, physical entry of information is eliminated. Working hours and the number of days of late coming are automatically updated which leads to the correct salary calculation.
7. Enable Digital Payslips
Payroll efficiency is enhanced by digital pay slips. Electronic pay slips may be obtained online through self-service by employees.
It reduces paper waste, printing costs, and the need for physical storage. Nevertheless, payslip access must be regulated through proper authorization processes.
8. Automate Tax Calculations
The most significant feature of indian payroll software is tax calculation automation. Configuring tax deduction at source, professional tax, income tax laws, slabs, exemptions, etc. promotes the accuracy of tax calculations. Automated Form 16 and other forms creation increases the value.
9. Facilitate Digital Payments
As the term suggests, a payment gateway enables payroll software to be able to process salary disbursements automatically and directly deposit them into an employee’s account digitally. Bulk settlements through NEFT and direct credits bypass manual processes.
Salary, deductions, taxes, allowances, etc. in payroll analytics help optimize processes, lessen costs, and improve compliance Software with reports and dashboards that can be customized allows for valuable analytics as well.
Enable Mobility Access
Employees can complete approvals, report reviews, and other functions using payroll software which is accessible through smartphones and tablets. Mobile access provides the convenience of decentralized teams, remote employees, and traveling.
Minimize Manual Work
Automating repetitive manual payroll service tasks such as data entry, calculations, verification, etc. improves speed and accuracy while lowering overhead costs and errors.
Ensure Data Security
Our software should have such features as reliable security to restrict access to confidential payroll data, encryption for secure information storage, regular backups, and detailed activity audit logs.
Features to Look Out for in the Indian Payroll System
Customizable Dashboards
Payroll solution software facilitates the creation of custom dashboards containing important metrics, analytics, and insights according to specific needs. It is possible to construct graphic reports for salaries, deductions, tax reimbursements et cetera.
Role-based Access
Payroll software offers configurable access controls that allow allocating roles with allowed activities. This stops the attempt of unauthorized access and modifying payroll in HR data that is sensitive to confidentiality. Roles such as finance, HR, admin, etc can limit the scope of activities.
Automated Audit Trails
Details on activity and audit logs provide for traceability of actions taken by various users. For instance, you can track data edits, approvals, payments, etc. Automated trails lead to compliance and transparency.
Workflow Management
Approval workflows for salary, and leave application mail request reimbursements can be handled better by incorporating multiple approval cycles in payroll software for various types of claims. Ensures proper verification.
Employee Self Service
Employee hr outsourcing services such as accessing leave balances, submitting requests, viewing payroll payslips, and downloading them are included. It ensures ease of operations and eliminates manual effort.
Data Import/Export
Quick bulk updates into cloud payroll software are possible with a simple import of data from Excel, CSV, or other formats. The ease of exporting data and downloading reports in the necessary format is also helpful for analysis.
Customizability
Flexibility is provided through the ability to configure custom fields, edit configuration settings, and automate organization-specific payroll processes as needed. Rules for calculations, workflows, etc. can be tailored.
Integration Capabilities
With APIs and integrations, payroll software can link with attendance systems, HRMS software, banks, government portals, and accounting software among others for data exchange to complete workflows.
These capabilities are designed into Indian payroll software solutions to provide comprehensive features for streamlining and improving the process of payroll through automation, compliance, security, analytics, and ease of use. However, the right software can ensure that organizations maximize their payroll.
Payroll company in India could be a complicated process when you don’t follow the right approach. Staying compliant with the income tax department rules, employee state insurance, laws and regulations, etc. should not be neglected.
What is the Best HRMS & Payroll Software?
To the employees and even the HRs, we have shared quite a detailed guide to payroll process in India, isn’t it? But until now, we haven’t shared software that can ensure these best payroll practices for you, right? Then let us share with you the finest and the most commonly searched SaaS provider for payroll processing in India, Super Payroll!
And there are reasons behind naming Super Payroll [a product of Superworks] the best payroll software in India, and those are its ultimate super features, which by the way are…
Bonus calculation
Payroll & Compliance
Employee compensation
Loan management system
Salary structure
Report & Analytics
Salary slip generator
Advance salary
Salary disbursement
Tax management
These amazing features of Super Payroll can benefit the payroll process in India on multiple scales, as they can…
Provide seamless automation,
Help you achieve ultimate accuracy,
End the stress of doing compliance,
Boost workflow efficiency, and
Provide data-driven insights
All these benefits can substantially help you reduce your manual effort while improving your control over the payroll process in India.
Conclusion
Have the best payroll processing software, and always ensure that you stay on track with the best payroll practices all the time!
Looking for the best software for payroll processing in India? Look no further than the Super Payroll of Superworks!
Reach out to us today and find out how we can payroll in India secured and faster than ever before for you!
Payroll is a crucial aspect of the organization, and there are various factors that you should keep in mind! Like you should first calculate the wages, then deductions, taxes and compliance as per the laws and regulations of the country, and many more, and to do all of this, you should get payroll software.
What are the 5 basic steps in processing payroll?
The payroll process in India or anywhere in the world can easily be divided into 5 very basic steps, which are...
Prepare- It's the first step, where you collect and gather all the needed information you need for doing the payroll.
Calculate- In this second step, you start calculating the salaries of the employees!
Deduct- Here, in this third step, you start listing all the deductions and other withholdings in the payslip!
Compute- And now in the 4th step, you minus all the deductions from the gross salary and get the result - net salary!
Pay- Here, in the last step of the payroll process in India, you distribute all the payments to the assigned employee accounts.
What is the payroll cycle in India?
Unlike most countries, we have a common payroll cycle, that keeps repeating every month! However, there's also a semi-monthly payroll cycle in some companies!
Written By :
Alpesh Vaghasiya
The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments.With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.
Superworks is providing the best insights, resources, and knowledge regarding HRMS, Payroll, and other relevant topics. You can get the
optimum knowledge to solve your business-related issues by checking our blogs.
WEBINAR 2024
Book a Demo
