9 Tips to Make Effective Payroll Management System
Payroll management is one of the most stressful tasks for companies. It is challenging to calculate each employee's working hours and extra benefits, create monthly payslips, and make timely payments.
It takes up HR managers a lot of time to create payrolls that they could have used to build a good culture in organizations. In addition, employee base diversification has made it harder for payroll managers to calculate the salary of remote employees scattered around the globe.
So, is there any way to fasten up the payroll management system?
And for your convenience, we have mapped out a few simple tips to make your payroll management system effective. Let's dig in.
Quick 9 Payroll Management System Tips
Our team closely works with HR leaders and payroll managers worldwide. Thus, considering their pain points and challenges, we have compiled these quick Payroll management tips:
Tip #1. Get Payroll Management Software
Payroll is a complex system that includes multiple calculations such as performance, tax, EMIs, extra benefits, etc. The important thing here is all the calculations have to be accurate. Otherwise, you might end up in big legal trouble.
Since humans are prone to make errors, thus, when your manager manually creates your payroll, it can lead to several errors. On the top, local and national payroll calculation laws are different, which can further confuse your payroll managers.
Therefore, you should first find the best employee payroll management software. This will reduce manual errors in your payroll operations and even fasten up the process.
TrackOlap is India's best payroll management software that can fully automate your payroll operations. Our payroll management solution integrates Employee Live tracking Software dashboard to simplify working hours calculation. Besides this, our tool helps with:
- Defining salary structure for every employee based on departmental rules and personal information.
- Generate payslips based on the working hours and leaves taken by an individual employee within a month.
- Automatically adjust EMI, loan payments and other deductions in payslips.
- Centralized dashboard from where employees can check out their pay structure and other information.
- Get one-click payroll reports to ensure your payroll management workflow is on the right track.
Tip #2. Build a Uniform Payroll Management Policy
The payroll department is responsible for creating payroll for each department and employee present in the organization. Thus, when separate incentives, benefits and other policies are followed in every department, it can over-complicate the payroll calculation for payroll managers.
The payroll calculation will become chaotic and messy when multiple departments and hundreds of employees work in them. Therefore, we recommend creating a centralized payroll management policy across all departments.
HR and accounting departments must collaborate with senior management to compile a centralized payroll policy. For this, you can use TrackOlap policy management software to build a single payroll policy.
The policy management software helps you share policy drafts with all stakeholders and get suggestions. In addition, you can share a rough policy structure with all your employees and request them to sign the document to commence the policy digitally.
Once the payroll policy is in order, you can customize your payroll management software algorithm to calculate payroll effectively.
Tip #3. Provide Initial Training to Your Staff
Whenever you hire a new payroll staff, it is essential to train them to use your payroll management software. Every payroll software has different features and interfaces. Plus, it is vital to provide software training if you have customized payroll software.
We have made full efforts to create a simple employee payroll management software. So, you won't have to provide extensive training to your staff. In addition, we also offer free demos, so you don't have to worry about training your employees.
Besides the software training, you should also introduce your payroll strategies, policies, etc. If possible, create a proper manual for your payroll staff to refer to it whenever they need any help. This way, they will not knock at your door whenever they get stuck somewhere.
Tip #4. Follow a Single Pay Schedule
Every company uses a different pay schedule, such as weekly, biweekly or monthly. But, nowadays, with different types of employment styles prevailing in the organizations, it has become difficult for companies to follow up a single pay schedule.
For example, often, companies hire freelancers to do odd jobs for them, for which they pay them on a per-project basis. On the other hand, they follow different schedules to pay their in-house employees, vendors and other contractors. All this can create chaos in the payroll structure.
Therefore, we recommend following a single pay schedule throughout your organization. If you have made plans to pay your employees on a monthly basis, you should follow the same schedule to pay your vendors and freelancers. This will reduce confusion in your payroll calculation system.
Tip #5. Streamline Your Payroll Software with Existing Systems
Are you planning to get a new payroll management software for your company? In that case, you should first make sure that the software is fully compatible with your existing business automation solution. It is important for payroll software to integrate with your accounting software, HR software, time tracking solution and other business tools.
Suppose your accounting software and payroll software don't integrate with each other. In that case, you have to add repetitive entries in both software to keep them aligned. This will unnecessarily increase your team's workload.
That's why we have not only designed payroll software. We have also created a full business automation toolkit for businesses, which they can use to track, monitor, and analyze their employees' performance in real-time. In addition, we offer CRM, lead generation, HRM, on-boarding and many other business tools.
This way, you don't have to worry about whether our payroll system can integrate with your other business tools or not. So, simply get TrackOlap's full business automation toolkit and just chill.
Tip #6. Consider Payroll Compliance
Another critical fact about payroll management systems is different payroll compliances. For example, depending on the employee's role, nationality, and other demographic factors, you must follow different payroll rules and regulations to calculate their payslips.
For example, if you have hired two remote employees, one from India and another from the US, you must follow different payroll regulations based on their nationalities.
So, calculating payroll based on different rules and regulations can complicate your payroll structure. However, maintaining a proper employee database within your payroll software will make it easier to follow all the compliance for calculating individual payslips.
You can categorize your employees under different heads like full-time, part-time, interns, etc. This way, you can follow all the rules without increasing your workload.
Tip #7. Use a Time Tracking System
A time tracking system is a great way to improve your employee's productivity and calculate accurate P payslips. Most time tracking software has a timesheet feature that records minute work details of employees like when they started work, when they took a break, and so on.
With this proper data, you can calculate the exact payable amount for individual employees. In addition, when you use automated software to calculate pay, your employees will feel more confident and trust your payroll system.
Tip #8. Maintain Proper Payroll Records
It is recommended by taxation authorities and auditors that you should maintain at least 2 to 3 years of payroll records.
Auditors required your employee payroll record to calculate your payroll budget and ensure that you have created proper payroll records. In addition, sometimes, the tax department also requests payroll records for reference.
Also, your employees might need a copy of payroll slips to file their personal income tax. Therefore, you should get employee payroll management software that helps you maintain payroll records for a few years. It will help if you are looking for payroll software with cloud-based integration so you can easily access your payroll records anytime and anywhere.
Tip #9. Monitor Your Payroll Department's Performance
Finally, we advise you to properly monitor your payroll department's performance. This will help you make sure that your payroll managers are productive and following the right procedure to calculate payslips.
Therefore, we have inbuilt a reporting feature inside the payroll software. This helps managers to monitor the performance and productivity of payroll staff in real-time. They can understand why payroll work is not getting ready on time and how they can make efforts to improve the efficiency of the department.
Besides this, all the performance reports are easily shareable, which allows employees to self-evaluate their performance.
Let's Start Payrolling!
Creating payroll is not at all an easy task. It involves multiple regulations, procedures and strategies. But, when you have the right tools and tips in your hand to use the payroll management system, you can easily build a robust payroll structure in your organization.
Since we have already shared excellent tips to manage your payroll system in 2022, all you now need is a payroll tool. And for that, you can Book a Free Demo session with the TrackOlap team today.