Are you aware of how payroll software can improve the performance of your company?
Read further to understand how payroll software can help your business.
Startup business and other communities are growing rapidly in India. As growth in business increases, responsibilities towards employees also increases. With the growing business, the administration of the HR record of employees’ salaries, wages, bonuses, net pay, and deductions becomes difficult. To calculate salary of every employee is a time-consuming and tedious task in rapidly growing companies. In this situation, Payroll software can play a major role to reduce your burden. With the help of a software, all unproductive activity can be managed easily so that you can focus on core business functions.
Here’s everything you need to know about payroll software provided by factoHR
For any company maintaining employee’s updated information is important and required for statutory compliance. factoHR provides powerful and flexible HRMS module where you can store and get employees all and latest information from a single place.
A Human Resources Management System (HRMS) is a software application that combines many human resources functions, including benefits administration, recruiting, payroll and training, and performance analysis and review into one package. factoHR is one such HR software providing end to end HRMS solution starting from onboarding process to performance management of an employee.
2. Salary generation
Salary generation or payroll processing is a most important task for any company. As payroll is a complex process which requires coordination from multiple departments. One error in payroll processing can cost money and reduce employees trust on the company. Many times error-prone payroll becomes one of the reasons for employee’s high turnover.
To tackle this challenge factoHR comes with all integrated payroll module. Where all the data required for payroll processing like attendance data, leave data, salary data will automatically be prepared from the various module. So you can process payroll quickly.
factoHR also comes with three-step payroll process wizard. Where system will track your completed process and guide you through the next process. It increases your accuracy and confidence in payroll processing. It also generates salary considering all the configured earning, statutory deductions like PF, PT, ESIC and loan principal/interest components.
It is a known fact that during month-end, the HR representative who takes care of recording and collating the month’s attendance for payroll is the busiest and becomes the most important person in the whole organization. At this point in time, a small error such as flipping or missing a digit altogether may go unnoticed and it may go on to miscalculate an employee’s total work days and further to their salary. An efficient attendance management system integrated with payroll will bring in accuracy and would thus minimize human intervention; thus, minimizing manual errors.
factoHR can easily integrate with any Bio-Metric machine to capture in-out attendance punching data. An employee can also apply for attendance correction for punch missing or any other reason. Shift timings, week off, the definition of hours required for considering full day/half day presence of employees, overtime rules, etc together can also be managed.
Every employee needs Leave to take a break from work. But to maintain the leave of every employee is no easy job. factoHR can help employee check their leave balance, apply for leave, allowing their managers to approve or deny the application. It maintains company-wide different leave policies for individual employee or groups.
An employee can check their leave balance in the factoHR. Integrated leave with payroll can help the calculation of salary at the end of the month be easy. It can automatically check leave with pay and leave without pay and generate the payslip accordingly.
5. Statutory compliance
• Minimum wage
Minimum wage is finalized based on the type of employee: Skilled, Semi-skilled and Unskilled. It changes twice a year: April and October. factoHR provides a facility where you can configure minimum wage in your CTC as per your state and it will be linked to your payroll. A problem of the penalty during the time of statutory audit can overcome through factoHR.
• Provident Fund
PF provides money only at the time of employee leaving from the organization and so it differs from Pension Fund. Provident fund plays a major role even for small business. Lucky for you, factoHR auto calculate PF for employee and deduct at the time of payment. With factoHR payroll software ECR challans are automatically generated ready to upload format. At the time of the audit, past data of employees can also be generated from the system in the desired format.
Employees’ State Insurance (abbreviated as ESI) is a self-financing social security and health insurance scheme for Indian workers. factoHR will auto-generate all your monthly employee ESIC Challans before you ask for it. This includes your ESIC Register and your ESIC Annual Reports too. One can also download ESIC challans which are generated automatically considering the 6-month cycle as well as the limit.
• Professional Tax
Profession Tax is the tax by the state governments in India. Each state has its own PT slab defined by the government of India. To manage PT slabs for different states becomes tedious and difficult. factoHR comes with a solution where management of PT slabs for every employee for any state is automatic and will be automatically considered at the time of payroll processing. You can also download form 5A and form 5 where you can check their tax balance with their challan number and date.
• Statutory Bonus
Statutory Bonus is required to provide to an employee if the company makes a profit. Many time companies forgot or ignore to include in their salary or CTC structure. factoHR provides an easy way to calculate bonus based on CTC structure, earned leave and length of service. It also provides a form C where you can generate bonus report for every employee automatically.
6. Income Tax
factoHR payroll software companies can calculate employees income tax and auto deduct TDS amount at the time of payroll. In factoHR ESS portal employee can submit their exemption and investment proof so not required to collect physically. factoHR provide challans for form 24Q, form 16B and 16 in PDF format.
To know more about income tax, read the following blog How to calculate Income Tax FY 2017-18
7. Travel, Claim and Reimbursement
One of the Biggest problems organizations face with respect to business travel expenses is no transparency and no data overspends, lack of control over employee expenditure and lengthy reimbursement cycles.
factoHR provides a facility where employees can claim reimbursement for travel, food and other expenses, and the admin will have the authority to approve or reject it. An employer can set a customer-formula as for the reimbursements as well. The system will ask to upload needed documents when an employee asks for the reimbursement, but the employer can change the policies according to his needs. Another facility like reimbursement limits, attendance consideration on traveling days, advance amount claims, kilometer wise travel charges, Mileage Related Claim, etc. makes this module detailed and specific.
So what you think about payroll software? Don’t you think it can make your life easy?
It is just tip of the iceberg we have covered, factoHR provides many more other features like a mobile app, chat-bot etc.
In light of the above benefits, it is advised to switch to payroll software that not only saves a lot of Time and Money but is also hassle-free and easily manageable. The company should consider above qualifications before buying any payroll software.
Then check out how factoHR can simplify your payroll process, by addressing all the pain points with atomizing all the processes and reducing the costs.