Top Features and Benefits of Payroll Management Software

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What Features Your Payroll Software Should Have?

It is not easy to calculate the right pay for all the employees, especially when you have such a vast and diversified team. When we look around a few decades back, paychecks were calculated and prepared manually. These days, payroll software is used by all small and large companies. This tool helps avoid manual errors for every payroll and distributes all paychecks properly. It can also automate tedious processes and save your HR staff some valuable time. 

The features of payroll management system are meant to keep track and store information about the deductions, pay rate, and other information to provide an accurate accounting. 

What is Payroll Software?

A payroll system performs many primary functions to result in valid rewards, compensations, and deductions to your staff. All these tasks are part of the payroll system. One of the leading payroll software features is to calculate net income and deductions for employees. 

In this process, the first step is to calculate the employee’s gross income. Then, it deducts PF, taxes, insurance, etc., from the gross income. After these deductions, it deposits the net income directly to the bank account of an employee. 

Payroll software is a great record keeper. It saves your HR staff from manually keeping records like employee contracts, pay rate, deductions, and work hours. It takes up a lot of storage in an office and is physically challenging as well. A payroll system comes with all the functions to save both stress and space. You can also use all the HR payroll software features that are dedicated to serving busy organizations. 

Payroll software also comes in handy for HR managers. A lot of payroll management services provide self-service options. This way, employees can check data of their work hours, pay rate, benefits, and other details on their own. This way, employees can quickly check details and get editing when required. It helps your HR team to prevent errors and perform their duties efficiently.  

Payroll Features and Benefits 

There are different benefits of payroll software to an organization. Streamlined processes that avoid manual errors and inaccuracies are the most crucial benefit. This solution is also very convenient as the HR team can save a lot of effort and time for other tasks.  

Businesses can also comply with government guidelines with payroll software, especially related to taxes. The payroll system in your country may be complicated. But you can make the process smoother with the right payroll software, which is fully compliant.

Payroll Management Software Features

Here is some of the payroll software features list to get a better understanding – 

Inbuilt Accounting Features

It can save time for both the accounting department and the HR team as it can automatically handle all payroll details. It avoids the risk of placing essential data in the wrong file and miscalculation. For example, even a small mistake of placing a “0” or a decimal may lead to a massive loss to the organization. A payroll system can save time and ensure accuracy. It also saves the organization from penalties as it complies with all regulatory guidelines. 

Reporting 

You can handle the following reporting tasks and customize the report criteria with the software – 

  • Audit reports
  • Timesheet reports 
  • Unemployment wages 
  • Reports related to liability and wage audit
  • Inquiry output formats and reports like XML, email, printed report, and text file 
  • Form 941, W-3, 1096, and W-2

The software also can allocate the resources to limited people as different teams handle different reports. Hence, the payroll management software can easily make the most of reporting. Ensure that the vital reporting features are provided in the software before buying it. Now you can ditch the files, pens, emails, and spreadsheets because payroll software can do it all.

Payslips and Files Recording 

The software can generate reports like salary benefits, leave summary, and salary statements. You can print payslip with its digital platform. It also has options to print and download forms like Form 16, Form 12C, and Form 12BA. This software handles all employees’ documents and records. It has added features like employee profile, experience letter, organizational chart, offer letter, and occupational tax and safety.

Managing Earning 

The payroll software manages employee’s earnings with the following elements – 

  • Allocation rules 
  • Calculation rules 
  • Basic pay and premium pay 
  • Tax earnings 
  • FLSA overtime pay
  • Earning division on work performance or bonus tips 
  • Earning codes 

Direct Deposit to Bank Accounts

It is one of the best payroll software features. It saves the cost of processing and annual supplies. It also avoids any fraudulent activity that may occur in the distribution of staff salary. The software transfers funds from the company’s account directly to staff accounts.

Customization 

Along with other payroll system features, customization plays a significant part.  It manages the whole payroll system by customizing every form and check. You can customize menus and tables. It also enables you to customize screens, reports, and fields to provide the best service. You can also print the organization’s logos to attach the same to checks and reports. 

Tax Filing and Calculation 

This feature enables payroll software to file employee taxes before the deadline to avoid penalties. This feature doesn’t cost a fortune to an enterprise. Here are some of the specifications available with the software – 

  • Pre-tax deductions 
  • Automatic quarter-end updates 
  • Check the due dates of the tax deposit 
  • E-media reporting 
  • Interface to transfer and create files to the selected service 
  • Compensation taxes 
  • Track filing status and exemptions 

The payroll software calculates and records pay hours and focuses on tax benefits. 

Security 

Database encryption is the primary security feature of this software. The software comes with password protection to limit significant resources like employee personal details, payroll details, and tax files. This feature also manages control access with complete audit trails. It gives added protection to sensitive information. 

Accuracy 

A high level of skill is always required to design payroll software. This program comes with regular updates to keep the features working smoothly. The software helps you to avoid a manual error. You can easily bypass human intervention by using payroll software. After entering the payroll details of every employee, it automatically fills the tax forms. This software is unbiased and keeps the records updated. It also works when a company outsources some work. 

The payroll management software has features like leave status, audit reports, labor distribution, wage file reports, payroll reports, reconciliation reports, etc. It provides visibility to all the essential functions to create payroll reports. 

Streamline Functions 

The payroll software streamlines all the functions given above. It allows access to records the workers need with automatic generation. You can also handle in-house bookkeeping and connect with a third-party bookkeeper. 

The Takeaway 

Payroll is an integral part of any business, especially for worker’s compensation and salary. Marg ERP offers HrXpert the most advanced payroll software to handle and streamline all types of payroll activities in an organization to provide a lot of benefits. Marg HrXpert is perfect for small to medium-sized enterprises for managing payroll operations.

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