Payroll Management System

Technology is evolving with each passing day. To strive in the business industry, you need to use automation as much as possible. In this article, we will learn about one such software a payroll management system.

Most businesses now rely on it to streamline payroll. Whether you are a small franchise or a business giant, PMS can actually be helpful. You can automate salary payments through PMS, but here is all you need to know.

What is a payroll management system (PMS)?

A payroll management system (PMS) is software that streamlines and automates the salary payment to employees. Paying employees from time to time can build a good reputation for your organization among the employees. It also motivates your employees to work well.

For this to happen, you need a payroll management system. It pays the salary to the respective employees on the exact date that you mention. It also calculates the number of hours your employees have worked in a day, week, and month.

Based on the timely calculation, you get a ready-made payment slip. And the calculated amount is then paid to the employee through the PMS system. It also takes care of any tax deductions. Sounds simple, right? Well, it is absolutely simple and time-saving.

Many reports, like the Work Report, say that around 25% of employees across organizations are underpaid. This could be because of an inaccurate calculation of working hours. To avoid such man-made errors, a PMS comes to the rescue.

A payroll management system (PMS) has various features and unending benefits. These features and benefits will tell you how effective a payroll management system is for your organization.

5 Benefits of using a payroll management system (PMS)

These are the top 5 benefits of using a PMS-

1. Self-service Portal

Maintaining paper documents is such a challenge. And when an employee asks for a certain tax receipt, the challenge gets tougher. But you can win this challenge because of the payroll management system. You ask how? Thanks to its self-service portal.

The latest versions of payroll management system (PMS) software come with this added benefit. Employees at your organization need not depend on HR for their tax documents. The payroll management system generates a login ID for each employee. Their account on this software contains all the salary statements, tax receipts, deductions, advances, etc.

Whenever they want, they can download or print a particular receipt. They can also check their working hours. This not only reduces the work load on the HR team but also reduces the frustration of the employee.

Self-service portal is also not time bound. Employees can generate receipts anytime, even on holidays. They can check the details before or after working hours. This gives them a sense of authority and relief if there is a tax-related emergency.

2. Time-Saver

They say time is money. If you waste your crucial time on payroll statements, what about your business growth? The smart way is to get things done with automated software so you can focus on your bigger goals.

Streamlining all software like data entry, salary statements, attendance, and working hours saves so much time. It allows the HR team to shift their focus to better things. Thus, it improves productivity. You can reduce the unnecessary burden on your team by using a payroll management system (PMS).

Do you know that a payroll management system can also generate paychecks? See. There are a lot of ways in which a payroll management system can save you an ample amount of time. All you need to do is get PMS software for your organization.

3. Compliance with Tax Regularities

Not everyone can stay updated on the ever-changing tax rules. Your one mistake in this case can cost a lot to your business and its reputation. A payroll management system software stays up to date when it comes to taxation rules.

It updates all the changes as per the ongoing tax policy of your location. It can update the tax column on its own. Therefore, it adjusts the salary statements likewise. Such steps keep you from paying excess fines. It’s helpful, isn’t it?

The payroll management system (PMS) keeps you notified about all the tax rate changes. This is how you can learn about new tax rules and manage the financial aspects of your business. Overall, this is a great benefit, as you can easily file taxes without indulging in a documental mess.

4. Accuracy

Every organization aims for accurate results in its workflow. But the tasks that involve complete human activities may be inaccurate sometimes. Miscalculations, incorrect tax deductions, and employee data with errors can create a lot of burden.

Therefore, most organizations trust a payroll management system for accurate data entry and salary management. It is also accurate when it comes to tax payments and salary statements. Hence, with fewer errors, employees are satisfied and you are safe from financial discrepancies.

All the calculations and maintaining records of salaries are done automatically by a PMS. So, errors are less and accuracy stays at the top.

5. Payroll Security

You must be worried about employee data and your bank account safety. We understand your worries. In the world of the Internet, data breaches are common. But you have a payroll management system. It has a robust security design.

You get the control to access, and it is on you to share the access with your employees. Encryption is available at all levels, so your data is only visible to you. The same goes with your employees’ accounts. They have login access, and no one can see their data.

5 Key Features of a PMS

1. Integration with other systems

What makes payroll management system software reliable is its ability to integrate with other software. This makes management smooth. A PMS connects to accounting software and other software without any hassle. You can thus get seamless integration of salary, working hours, and attendance of your employees. The HR team can update the record on their end, and the payroll management system will gather all the data to integrate it into the system.

2. Analytics and Reports

For any business, data analysis and reports play an important role. These reports give you a detailed analysis of the total salary given to the employees and the total tax that was paid and deducted. There is no need to download separate statements and then combine them.

The payroll management system has this feature of automatically updating and creating a statement. This statement includes everything about payments, taxes, and other funds. Therefore, you can get the report at any hour. The report just takes a few minutes.

3. Customization

One of the best features of a payroll management system is its customization. Depending on the size and employee strength of your organization, you can make changes to PMS. These customizations can be made at any time if you see growth in your business.

Also, you can add separate tax categories if your organization has some personal fund raising or anything like that. If you deduct a certain amount, you can also add that as a category. If your organization pays employees based on their performance index, you can customize it.

You can also remove any additional criteria or category that does not support your organizational structure.

4. Record Keeping

As discussed already, keeping records on paper-record keeping is a huge task. Finding the years-old record when needed can be more difficult. That is why businesses these days are going digital with record keeping. Don’t rely on a computer folder to store employee data. You can lose it someday.

Trust the payroll management system to store all the data about your organization. You can store years old data and still find it right when needed. All of this is stored on cloud storage, and so it can be accessed anytime you login to your PMS system.

Go paperless as much as possible. It is good for record keeping and also a sustainable solution.

5. Tax Calculations

The biggest problem organizations face is paying fines due to tax miscalculations. Sometimes the organizations forget to file taxes, and that becomes another trouble. But say goodbye to fines and dues with a payroll management system.

It efficiently calculates all the taxes without errors and notifies you when new rules are announced. It also pays the tax automatically once you approve it. You need not download statements and maintain them until the tax filing date. A PMS itself keeps track of when you filed the tax and also about the due dates.

Conclusion

A payroll management system (PMS) is the ultimate solution for all salary related errors. This software is easy to set up. The great thing is that it integrates with almost all the other software quickly. Now that you have PMS to look after taxes, you are at a bit of ease.

A payroll management system (PMS) also makes perfect data reports on the salary statements. Its customization is another amazing feature that most organizations prefer. Investing in such software can save you time and reduce human errors. Don’t wait. Invest in payroll management system (PMS) software now.