10 Key Features to Look for in Payroll Management Software

Before payroll software came into the picture, payroll management was a tedious and error-prone process. Manual data entry and inaccurate documentation often resulted in delayed employee payments which led to frustrated HR teams as well as employees.

But today, organizations worldwide have come to recognize the indispensable value of a payroll software. Most payroll software offer easy integration with different systems. This is how payroll software enhances accuracy by leveraging technology and expediates workflow as there’s no need to enter the same data multiple times.

In this blog, we look at 10 very important features that you must look out for if your company is considering investing in a payroll software.

What is a Payroll Software?

A payroll software simplifies and automates the task of compensating employees for their work. It computes gross wages from hours worked, handles tax and benefits deductions and facilitates direct deposit payments. Virtually all organizations today, regardless of size, rely on a payroll computer software to streamline their payroll process.

The primary goal of the payroll process is to ensure accurate compensation for work delivered. If your organization frequently encounters errors in the HR payroll process, it means you need an overhaul in your payroll systems.

Benefits of a Payroll Software

A robust payroll system offers a number of benefits, such as:

• Enhanced efficiency through a streamlined payroll process, leading to cost savings by reducing the hours required to achieve similar outcomes.
• Improved accuracy and punctuality of paychecks.
• Simplified compliance of payroll systems with labor laws and standards, fluctuating tax rates and regulations on records retention.
• Enhanced accessibility to critical data presented in a customizable and easy-to-understand format that helps in informed decision-making.
• Support for business expansion, given that automation and artificial intelligence are essential for scaling operations.

10 Key Features to Look for in the Best Payroll Software

Many people tend to believe that all payroll software features are identical. The result? Most business owners opt for a payroll management system solely based on its price. However, they often realize much later that it fails to meet their organization’s requirements and lacks essential capabilities to process payroll related procedures in the right manner.

If you are evaluating solutions to pick the best Indian payroll software, you need to look for the following key features:

1. Payroll Management

This feature is actually the most basic part of a payroll software and yet it is important to reiterate this one since it entails the fundamental tasks involved in the payroll process. A payroll software relies on data from HR, including employee ID numbers, tax details, payment schedules, deductions, and gross/net pay.

Once this data is entered, the payroll system can execute payment for each employee based on their specific needs. This feature guarantees accurate calculation of employee pay according to their personalized payment method.

2. Direct Deposit

A primary advantage of adopting payroll software is the incorporation of direct deposit functionality. Direct deposit reduces the risk of cheque fraud and enhances efficiency by electronically transferring funds.

This eliminates the need for printing and distributing paper cheques. Moreover, direct deposit as part of the payroll process facilitates paperless transactions. Employees also prefer this way of immediate and convenient access to their paychecks.

3. Time Tracking Integration

The payroll software should automatically record employee hours when they clock in and out, eliminating the need for manual input. This integration is particularly useful when combined with employee self-service since it allows employees to access their hour reports instantly.

For businesses with hourly employees, selecting payroll software that includes a time tracking module or integrates seamlessly with existing time tracking software is, in fact, an essential feature.

4. Compensation & Expense Management

This feature covers deductions and payment methods such as employee benefits, bonuses, overtime and vacation pay. A payroll software should seamlessly manage these adjustments without disrupting existing processes. Additionally, the payroll systems should synchronize with the time and attendance system, recording clock-in times and adjusting for lateness and overtime accordingly.

For industries that deal with reimbursable employee expenses such as travel and lodging, a payroll software with expense management capability is essential. These solutions automate expense report and payment processes while saving time and ensuring timely reimbursement. Moreover, they guarantee accurate record-keeping for easy retrieval when needed.

5. Tax Filing & Compliance

Filing taxes can be a daunting task, which is why relying on a payroll software system can greatly simplify the process. Most payroll software include built-in tax filing features or offer tax services as an additional option.

These features enable you to manage your business accounts, manage employees’ tax forms and track deductions seamlessly. All you have to do is input the tax information, generate the required forms and submit them to the appropriate agency.

6. Employee Self-Service

This function in payroll software offers complete transparency which allows employees to access their payment and tax information. It empowers them to choose how they receive their pay while also encouraging open communication in the workplace. Additionally, such dynamic payroll management takes the pressure off HR departments by addressing employee questions and concerns regarding payment directly.

More importantly, it allows employees to independently update certain simple aspects of their profile, such as their bank account number or home address. It also grants them direct access to their vacation balances, payslips and forms.

As a result, your HR team can devote their time to focussing on more strategic activities that can create a positive company culture.

7. Reporting

All major payroll software systems include reporting features, which are crucial for analyzing and enhancing business operations. These reports typically offer essential information related to the payroll systems such as payment summaries for each employee, details on payments and deductions, tax data and a comprehensive breakdown of costs and revenue.

Using these reports enables you to plan future budgets and operations effectively, identifying and minimizing hidden costs while enhancing overall payroll processes.

Additionally, some payroll software options offer a dashboard that provides HR payroll data specifically tailored for stakeholders. While the ability to generate HR payroll reports is crucial, the capability to customize these reports to suit your organizations unique needs is also important.

8. Integrated Systems

In a diverse tech landscape where each business’ tech stack differs, one certainty remains: regardless of your organization’s size or industry, seamless payroll process integrations are essential. These integrations effortlessly connect with your existing range of third-party platforms, applications and partners and caters to both your company’s and your employees’ needs.

With payroll software integrations, data flow between your HR and payroll platform is automated, eliminating the complexities of managing disparate data and ensuring a smooth user experience. In essence, you gain a comprehensive solution with a single login.

9. Global Payroll Compliance

In today’s remote-friendly work environment, organizations have the opportunity to hire talent from around the world. With the right payroll software, you can easily integrate highly skilled and experienced remote workers into your workforce on a global scale. A strong payroll system can effectively handle the complexities associated with employing international staff such as managing foreign currencies and time zones.

Additionally, an integral aspect of the global payroll process is ensuring compliance with government regulations across various jurisdictions. A good payroll software system offers features that assesses your system, conducts analysis in alignment with regulations and ensures that your business operates within legal boundaries.

10. Advance Payment Options

A key feature of a good payroll software is its capability to offer employees financial freedom with a streamlined loan and advance request system. It should offer features like on-demand or advance payment where employees get to request a portion of their wages before payday. This feature enables employees to manage unforeseen expenses or settle bills in advance.

Some of the best Indian payroll software also facilitate seamless online or mobile app-based requests for instant payment to ensure a smooth payroll process without disruptions.

Wrapping Up

Streamlining and automating your payroll process is one of the most effective methods to save time and resources. Investing in a payroll software that facilitates easy integration, like the one by Akrivia HCM, can safeguard your business and greatly enhance your employee experience. Akrivia’s payroll software allows you to add a customizable salary structure, handle different pay cycles across different groups all the while making tax compliance easier.

A reliable payroll software system is no longer a good-to-have; it is now a must-have if you want to build a thriving business. Considering products like Akrivia HCM can significantly increase your workforce’s efficiency and productivity.

What are your top reasons for considering a payroll software? Let us know in the comments below!