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The Importance of Payroll Software

Businesses nowadays rely on a multitude of factors to maintain their edge in the industry, and some have relied on automation to reduce the amount of man-hours and increasing the amount of work produced. The usage of software has played a huge part in automation, and we are going to explore more about the role of payroll software in today’s society.

What is payroll software?

Payroll software is software used to calculate the wages of employees (after the necessary deductions), the hours worked and leave taken, and their attendance rate. Payroll processing can be outsourced to a vendor (to save cost), or it can be done by the Human Resource (HR) department. It has evolved from a simple software (from just calculating wages) to a complex one where it is linked to various agencies and includes various functions to help increase the productivity of a business.

Features of a payroll software

A good and efficient payroll software would have a simple interface where anyone can pick it up easily, have a cloud-based software that allows data to be received and sent anytime from any devices, automated tax calculations and filing, accurate salary calculation, instant access to employee data, and even timely help desk support from the software provider, if needed. In order to prove their products worth, companies are willing to offer you a free cloud EYU payroll software to allow you to test the limited features before purchasing the extended software.

Advanced features

Some payroll software come with advanced features such as payslip customisation and emailing, mass sending of invoices, reminder of payment deadlines, and even auto-enrolment compliance, where the data will be fed to the pension provider and they will do all the necessary calculation of the contribution payment. Some software are even cloud-based, which means the information inside the software is updated in real-time. This can be critical if there are any changes to tax and compliance laws.

Increasing efficiency and productivity

With payroll software becoming increasingly easier to use, it allows payroll processing to be done in-house without dedicating many man-hours to it, as it is a highly automated process. It also allows the business to retain control and flexibility, eliminating the potential aspect of miscommunication with the vendor (if they had outsourced it).

Improper records

Having improper filing records can cause you a dip in your business productivity, or in a worse scenario, get you into trouble with the law. A wrongly computed payroll may see an employee questioning the accuracy of the calculations, and the back and forth liaising between the employee and payroll department may cause his/her work to be affected. In the eyes of the law, not paying the right amount of tax and compliance issues like keeping improper or missing records would entail a fine (or demerit points) or even a suspension.

Understanding the scale of your business will determine if you need a payroll software or not. If you are doing a small scale business with a few employees, you might not require the software as you can manually keep track of it yourself. Knowing the right software (whether in-house or cloud-based) to be used would allow you to cut down on the expenses. In-house software is cheaper and require a one-time purchase, but they must be updated manually if there are any changes, while cloud-based software can be updated remotely, and would require a monthly subscription due to the upkeep of it.