Payroll is also an essential function in any business, which is why it critical that it gets executed with the least amount of error. It takes away a lot of time for HR and finance teams of small and medium enterprises in India to be able to process payroll every month. Most companies still do it manually which makes it all the more time consuming and prone to errors. Ineffective or untimely payroll can prove to be a costly process, as it not only frustrates the ones taking care of it, but also can be quite demotivating for the employees. Timely, fast and efficient payroll is what can set successful companies apart from the average ones.
Having said that, the current Indian market is flooded with payroll software services, each of which claim to make payroll processing a smooth function for organizations. With so many options available, identifying and investing on the right software can turn out to be quite a daunting task. So, in terms of the Indian payroll system, the following criteria might be helpful in choosing the right software.
Even though seldom ignored, User Experience is one of the most critical elements to consider when purchasing any software. The biggest of all businesses are the ones that provide applications and services which are easy to use by any one with any background. A simple, yet extremely intelligent flow that contributes to a positive user experience is what needs to be aimed at. Any software that your employees do not find intuitive and easy to use will end up being a failed experiment. This is a common and happens most of the time with HR software. Having failed once, HR’s don’t attempt to experiment with another software. Giving employees a positive user experience will translate into them rewarding the brand with their trust and long term business. This should be number one priority.
Security is one of the biggest problems facing the cloud community, and with recent threats hacking into systems all across the world, this becomes all the more critical. Payroll comprises of sensitive employee data that needs to be safeguarded at any cost. Unfortunately, not many businesses in India see security as a top concern. The safety of data depends on the technology platform that the vendor uses and the processes they follow. Data needs to be encrypted at the database level, which might come at a cost, effort and technical depth. This is why most Indian companies ignore this part while purchasing a software. The payroll software needs to be one that can create encryptions at multiple levels. Without this, investing in a payroll software might not make sense at all.
Just like all other modern HR software, payroll also needs to be cloud based. Desktop based software have inherent limitations within themselves and they can never compete with the advantages that a could based software can provide. The future is making a complete shift from spreadsheet based payroll to going online for all requirements. A cloud based payroll system comes with advantages such as anytime anywhere access, ease of use, employee collaboration and higher efficiency. The software that you choose should let your employees view, operate and function through any device and at their own convenience. A cloud based payroll system that comes with an intuitive user interface empowers employees to self manage with the right tools.
Time and attendance integration
Choose a payroll solution that automatically integrates with your time and attendance management data, so that payroll disbursement becomes an automated and quick process. Piles of documents comprising of manual recording of attendance and time tracking of employees is inefficient and frustrating to keep track of. A payroll software needs to do away with this by enabling effortless capture of entry and exit time of employees. The software should be such that the attendance data captured can be easily integrated into payroll for smoother operations. Additional benefits of this include better time management, employee themselves managing their schedules better and real time tracking of employee presence.
Compliant with legal requirements
This is of extreme importance as faltering on any of the federal laws and tax compliances can cost companies hugely! The statutory compliances required for Indian payroll are many such as minimum wages, TDS deduction, ESI finds, PF deduction, gratuity, EDLI and more. Each of these require special attention. This complexity that Indian payroll brings with it can be reduced by by automating tax filing through a payroll software. This saves employers from collecting documents from their staff every once in a while and also stay compliant with the respective state and federal regulations. A cloud based payroll software that keeps ahead with legal requirements is a solution that organisations need to opt for.
Adopt a payroll system that makes the seemingly mundane and intricate activities of Indian payroll quick, easy and accurate. Along with this, the HR department in all organisations need to ensure that employees are paid on time and correctly. A payroll software that is accessible to all the key stakeholders and ensures transparency and trust is needed.
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