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What is the Working Procedure of Payroll Software for Company HR System?

Payroll Software for Company HR System

We are here to find how payroll activities are handled by a computer application. And, in order to understand it finely, firstly we have to understand what is payroll

When we talk about any system, we mostly consider it as an offline or online application. But in several cases, the systems have a wider perspective rather than online and offline. They come with a much broader set of activities and structures. For instance, production systems, train systems, etc.

However, with the Payroll System, we are considering a whole different thing here. We are here to find how payroll activities are handled by a computer application. And, in order to understand it finely, firstly we have to understand what is payroll.

The process following which an employer pays his employees for the work done called Payroll. Mostly payroll composed of two things earnings and deductions. Earnings are the money provided for the employees in the form of salary or wages, allowances, bonuses, medical benefits, etc. While deductions are that amount kept by the employer from employees salary for the payment of Provident Fund, income tax, and other statutory payments.

With the help of payroll software employer calculates the amount going to be paid for the employee from his earnings and deductions for the month. That’s why an employer kept detailed records of earnings and deductions of his every employee. In some cases, you can prepare paychecks for example through Gen payroll software for HR management tools, the service provider generates the paychecks and issues them to you by payday.

Computer/ Desktop-Based Payroll System

At the time when the salaries of the employees should be disbursed, there is a requirement of performing a set of standard calculations on the payroll, a day or two days before.a desktop or computerized payroll system performs at its best. It calculates all the earnings and deductions correctly based on the attendance records of the employees automatically. The latest payroll systems come with the facility of auto disbursement of salaries once linked to the bank accounts. Most banks in India provide the facility of fund transfers based on instructions granted from the employer. To perform this action of salary disbursement there is a list of employee codes and names, bank name and account number, IFSC or similar code and the amount in which the salary to be credited. The modern-day payroll provides this feature of preparing a list that is further sent to the bank.

At least, Gen payroll software for from SAG Infotech offers this facility and is capable of performing several written below tasks.

  • Maintain regular payslips, tax slips, reimbursement slips, etc
  • Manage flexible benefit plans
  • Manage multiple pay structures
  • Keep a record of travel and other immediate allowances
  • Performs dynamic earnings or deduction component creation
  • Manage responsibility of multiple salary revisions
  • Provides customization to bank uploadable formats
  • Gives ease of generating customized reports including JVForm 16/12BA with digital signature
  • Keeps investment proof for and evaluates the correct deductions
  • Provides facility of online reimbursement entry & approval
  • Performs proof verification of Online investment
  • Capable of resolving queries of both employers and employee
  • Performs income tax return processing and filing at a proper time interval

Online versus Offline Payroll Software?

Offline Payroll systems basically be a part of the payroll or ERP software and run on a computer system called offline payroll systems. The payroll rules and regulations in India varies from state to state. For such sort of any changes in the regulations, the software developers need to update software with new regulations and it should be happening at the client’s end. In case of a client has customized software as per his need then it should be in mind of a software vendor that while incorporating new changes that customization must not be damaged. Other than this, this is also the responsibility of employer users to maintain all records related to the employee by anyway for a particular period of time that is at least 7 years.

On the other hand, if the online payroll systems are considered they run on the cloud. It is the responsibility of the vendor to maintain and update software regularly. In the case of an online payroll system, the employer has an internal attendance management system that is associated with the online payroll system. It performs accordingly to prepare employee wise earnings and deductions once the attendance is fed to the online payroll system. Additionally, the online payroll system gives an aid of customized reports generation which will further help you in analyzing your payroll pattern and compare it with the company and employee productivity.

For the enterprises or organizations which have multiple offices across the world, the online payroll system is a remedy for them. So the only things that must be in your mind are to opt for the best payroll system to ease your payroll management.

Currently, the Indian market observed the availability of numerous payroll software. As claimed by their developers, all the software are prone to supply smooth payroll processing for organizations. Now the thing which needs to be done carefully is the selection of the right software and investing in it that turns into a daunting task. So, one can consider the govt authorized Gen Payroll software for small business in order to select the right software as per the Indian payroll system.

If you are looking for free payroll software for your company, download the trial version. SAG Infotech also provides demo by Gen Payroll software free download full version for the HR managers.

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1 Comment

  1. Very good blog you have write about Payroll system.

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