A payroll management system is a tool that enables organisations to computerise their payroll management process. It reduces human involvement which not only limits the possibility of error but also increases the overall efficiency of the process.
Currently, the market is flooded with various advanced software like Paycom LMS, etc that allow users to integrate payroll management processes with learning management systems. You can read detailed Paycom reviews online to find out what employers have to say about it. However, today our focus is to discuss some of the basic features that every payroll management system must have. So if you are interested to know more, then keep reading!
- 1 Accuracy in payroll management
- 2 Tax calculation and filing
- 3 Direct Deposits
- 4 Compliance management
- 5 Record- keeping
- 6 Employee Self Service portal
- 7 Automatic reports and payslip generation
Accuracy in payroll management
The objective of implementing a payroll management system is to make the process faster and efficient. Therefore, the most important feature for your payroll management system to have is a high level of accuracy while managing payrolls. It means that the software should be capable of performing all calculations and accounting tasks without committing any errors.
Tax calculation and filing
Once the payments are made, the next step in payroll management is tax filing. Generally, payroll management systems have an in-built feature that enables them to calculate taxes as per the applicable state and federal laws and file the returns before deadlines. This saves you from attracting any penalties or notices for non-compliance with statutory requirements.
Another important feature to look for in a payroll management system is direct deposits. This feature allows you to directly deposit the salary into the accounts of your employees. It saves you from writing and handing out cheques to each employee personally. This not only reduces the possibility of your managers committing mistakes while writing the cheques but also saves employees from worrying about misplacing them.
In addition to this, it also gives you an opportunity to go green and save paper. So, it is a win-win for everybody!
Compliance is a vital issue while managing finances. Maintaining compliance with all relevant legislation guarantees that your business operates within the statutory framework. This prevents legal action as well as potential fees from a lack of compliance management. Therefore, your payroll management system should not only offer arithmetical accuracy but also ensure compliance with all applicable employee remuneration laws.
Certain advanced payroll management systems also automatically notify the administrators whenever new updates regarding these laws become available.
The next feature to look for in a payroll management system is record keeping. These systems can help you keep detailed records about the deductions, reimbursements, bonuses and final payout for each employee. It can also contain information related to leaves taken, hours worked, rewards earned during the month, etc. Traditionally, these records were required to be manually maintained by the HR department, but payroll management systems have now computerised this entire process.
Now, managers do not have to surf through multiple files just to get a little piece of information. They can access it all with just a few clicks on their laptops, desktops or any other device as long as it is linked with the main system.
Employee Self Service portal
ESS or Employee self-service portal is one of the most innovative and helpful features of payroll management systems. This is a portal that gives your employees access to all the information related to their payroll. It adds transparency to your process as now employees can check the deductions made, bonuses paid, etc. It also increases satisfaction and saves their time, as now, they do not need to visit the HR department to inquire about every little detail. They can just login into their profile and access whatever information they require.
Automatic reports and payslip generation
Another significant feature of payroll management systems is automatic reports and payslip generation. Leave summaries, salary statements, etc are the kinds of reports that payroll management systems can generally create. It is capable of using a tailor-made approach to oversee and make reports dependent on the organization’s payslip formats.
These are just some of the basic features of a PMS. The currently available systems come with more advanced and unique features.