What Is Payroll Management Software (Features, ERP Integration & Benefits)
Managing payroll manually is time-consuming and prone to errors. According to ADP’s 2024 payroll survey, 32% of global employees faced errors in their paychecks. Such errors can hamper the company’s image and lead to employee stress and anxiety. Moreover, as per the IRS, many companies have also been penalized millions of tax compliance fines due to such errors. This is where reliable payroll management software that skillfully handles these tasks is needed.
But what is payroll management software? Is it an ERP software? And how do you choose the best payroll management system?
We at Ekklavya will answer all your burning questions regarding payroll management software.
What Is Payroll Management Software
Payroll management software is an in-house or cloud based solution that helps businesses manage, maintain, and automate the process of paying employees.
Many people think that payroll management software is just for processing salary payments, but that's only part of the full picture. It does so much more.
Yes, it calculates salaries, but it also handles a range of other tasks that make payroll management efficient, accurate, and compliant with laws and regulations.
Here’s what payroll software can do:
Wage calculations
Maintaining records of attendance
Leave management
Calculating and filing taxes
Generating Reports
Compliance Monitoring
What Is Erp Payroll Software?
Now that you know what is payroll management software, let’s understand ERP payroll software. An ERP payroll software is a part of the Enterprise Resource Planning (ERP) system. It is a comprehensive module that integrates all payroll-related activities in an organization. It automates processes
Implementing an ERP Payroll system can bring you:
Saved Monetary Costs: Fewer mistakes mean less money wasted. With automation, you may need fewer people to perform payroll tasks.
Accuracy You Can Trust: Automated calculations help eliminate errors, ensuring everyone gets paid correctly and on time.
Employee Self-Service: Employees can check their payroll info and update personal details whenever they want, making things more transparent and convenient.
Streamlined Data Flow: All the payroll data is connected, reducing the need for duplicate entries and ensuring consistency across departments
Automated Reminders: You will never miss any deadline. ERP payroll software sends alerts for deadlines like tax filing dates, invoice payments, etc.
Is Payroll An ERP?
No, payroll itself is not an ERP (Enterprise Resource Planning) system, but it can be a part of a larger ERP solution. Payroll is often integrated into ERP systems to ensure data management between departments, including HR, finance, and operations.
However, having lots of data can be overwhelming, especially when one has to analyze it to make informed decisions. At Eklavya, we offer an advanced ERP-integrated payroll solution tailored for organizations.
Our software offers multiple features like multilingual pay slips, comprehensive pensions management, integration of machine learning (ML), predictive analysis, and AI.
Eklavya’s HR & Payroll eXecutive Solution is ideal for any business that wants to:
Streamline activities extending to all areas (HR, finance, production) of the organization
Gain end-to-end control over experience delivery.
Automate employee Recruitment process
Ensure all processes are compliant with the regulations
What Benefits Does Payroll Management Software Offer?
According to Deloitte Human Capital Trends Report, 67% of Indian companies are using payroll automation software as of 2024. This trend is expected to exceed 85% by 2025. Clearly, the benefits of the system are the reasons why companies are opting for automation in payroll management.
Payroll management software comes with a range of benefits for businesses looking to simplify their payroll processes:
1. Error Reduction: By automating calculations, the software minimizes the risk of mistakes in wage computation and tax liability.
2. Time Savings: HR teams no longer need to spend hours processing payroll manually, allowing them to focus on more important tasks.
3. Cost Savings: Automated systems reduce the need for extra staff or outsourcing, lowering operational costs.
4. Compliance: Payroll software ensures compliance with government regulations, tax laws, and labor rules.
5. Scalability: As businesses grow, payroll software can easily handle increased employees without additional resources.
How To Choose Payroll Management Software?
When choosing payroll software, you must consider all important factors before making any decision for your business.
Here are some key questions to ask before making your choice:
Is it Scalable?
Can the software handle your business as it grows? If the workforce increases, it should be able to manage the payroll processes without compromising efficiency.
Is it User Friendly?
This is the most important factor to consider as, ultimately, the people who are going to use it are the HR staff and employees. So, the software interface must be simple to navigate, especially for tasks like viewing payslips or applying for leave.
Does It Integrate with Other Systems?
Does the payroll software work well with your existing HR, accounting, or ERP systems? Integration ensures smooth data flow between departments, reducing errors and redundancy.
Is It Compliant with Local Laws?
Does the software stay updated with tax regulations and labour laws? It’s crucial to choose a solution that ensures your business meets all legal requirements automatically.
Is Employee Self-Service Available?
Can employees access their personal information? A good payroll system offers a self-service portal for employees, saving HR time on administrative tasks.
What Features Should You Look For In Payroll Management Software?
After asking the above questions, you must have got clarity on how to choose payroll software. Here are the essential features that payroll management software offers:
When selecting payroll software, look for essential features that align with your business’s needs:
Wage Calculation: Automated and accurate wage computations based on hours worked, overtime, and bonuses.
Tax Filing: You can accurately calculate and file tax deductions with the help of the system.
Leave Management: YTracks employee leave and automatically adjusts payroll accordingly.
Compliance Monitoring: Keeps the business aligned with labor laws and tax regulations.
Employee Self-Service: Allows employees to view payslips and manage personal information through a portal.
Which Payroll Software Is Best?
Eklavya’s HR & Payroll eXecutive Solution stands out for its unbeatable features, designed to meet the needs of both industrial and non-industrial workers. Key features include:
Complete Payroll Automation: From wage calculations to tax filings and compliance tracking.
Offers Scalability: Grows with your business and is suitable for small to large companies.
Leave Management: Online leave applications with multi-level approvals.
Compliance Monitoring: Ensures businesses stay compliant with tax laws and labour regulations.
Pensions Management: Covers government-mandated pensions and other benefits.
Is Payroll Software Compliant With Laws And Regulations?
Yes, payroll software ensures compliance with labour laws, tax regulations, and other legal requirements. Features such as automatic tax updates, statutory reports, and audit trails help businesses stay compliant without extra effort.
Key compliance features include:
Automated Tax Calculations
Legal Updates
Accurate filing of taxes
Benefits & Deductions
Employee Classification
Audit-Ready Reports
Is Excel A Suitable Tool For Payroll Management?
While Excel can handle basic payroll tasks, it is
Need of Manual Work: Excel needs constant input from humans, thereby increasing the risk of payroll errors.
Lack of Automation: Does not automate tasks like tax filing or wage calculations.
Limited Scalability: Managing a growing number of employees with Excel becomes time-consuming and complex.
Frequently Asked Questions About What Is Payroll Management Software
Payroll management software is a tool used by HR professionals to automate and streamline their end-to-end payroll-related activities.
Eklavya’s HR & Payroll eXecutive Solution is ideal for businesses that require complete payroll automation, compliance monitoring, and integration with other business systems. It’s scalable, user-friendly, and packed with essential features.