Payroll is integral and very important for a business. It, at all times, gives a true picture of a business’ labour payments and taxes. It is a much-regulated obligation that includes employee personal information, and tax requirements. There are over 51 million small and medium businesses in India and they employ over 120 million people mentioned in an article on CNBC LLC. That’s why the importance of payroll in an organization is increased significantly.
If you are using payroll software like Hivepayroll accurately then it will not just manage payroll process, income tax, leave, attendance, timesheets, payslip and salary, performance, and reporting. It also takes little input from the employer. Herein are five (5) tips on how to avoid the harsh consequences of a poorly-kept payroll. With these tips, you will know how to run payroll software successfully or what things make your payroll process successful.
1. Automate the system
The first advice is to seek to institute a payroll management system that fits your business best. There is much such software in the market and they are usually easy to use. Automating the system allows for ease, speed, and quality and reduces the possibility of human error to the minimum. This system, of course, would include all the information needed including employee names, gender, designations, employee numbers or registration IDs too. This tip leads to the next tip.
2. Classify Your Employees
Categorize your employees and place each person in his/her category. If you outsource, use contractors, temporary staff, and/or permanent staff, classify them all because this plays a role in the calculation of tax and upon who the burden of its calculation is on. Ensure you follow all the Indian minimum wage laws.
3. Grant Employees Access
Your employees should have access to the payroll portal. Not full access but enough to verify their details and also see a breakdown of their salaries, taxes, and other deductions. It would ensure the system is open and all errors, if any, are immediately found and corrected before they perpetuate themselves. Allowing employee access brings other benefits which include gaining access to regular, and sometimes important, feedback on how well the system is running, the hitches faced in its use, and suggestions on how to improve the system as a whole.
4. Attendance and Time Management
This is key. You have to know this for overtime payments and labour that is time-based, paid by the hour. It ensures both parties do not feel cheated and there is an accurate description of monies spent. To do this, you can install software that would track time, and demand that employees sign in and sign out, including those who work remotely.
Apart from the above, attendance and time management allows the business to detect who missed work and the number of deductions to be made. On the flip side, it helps determine who is due for leave and how long for it.
5. Regular upgrades
This is both for the automated system and for external factors like tax and other governmental changes that affect the payroll and payment of employees. Staying up-to-date should not be left to chance but must be a deliberate company policy. You can subscribe to regular updates from your software provider, newsletters, government gazettes, and other sources of the information you need to ensure you are on the right side of the law and carrying out the right business practices.
The Most Important Payroll Software Features
- Payroll Processing and Management
- Direct Deposit
- Tax Filing Services
- Compensation Administration
- Employee Self-Service
- Compliance Management
- Timesheet & Attendance
- Leave Management
Why Choose Hivepayroll?
Hivepayroll is a payroll software program specifically designed for companies in India. It automates the calculations that are typically required when it comes to payroll and makes it easy to manage as well as pay employees promptly. One great feature, which is tax-compliant, is all the amendments and attachments that can be made by your account managers or accounting team in order to make sure that all liability is covered. Hivepayroll, that eliminates these problems and lets you keep your bookkeeping as simple as possible. You will become India’s top employer by automating your payroll calculations to save time, and money and avoid mistakes.
In conclusion, you as a business should, as much as possible, avoid using a manual payroll system as that can become strewn with errors. Errors in data entry are easier to detect in an automated system that employees can access than in a manual system. Reduce the chances of errors, reduce human involvement, and connect deductions like tax, insurance, etc to the pay so they can all be made without fuss. All you need to do is input the percentage deduction and let the system do the rest. So also, audit your employee details, their IDs, tax numbers, etc. Do not let yourself be caught unawares.
Last but not least, never stop reviewing the payroll system for both performance and functionality. Never be afraid to discard whatever is not working for you.