The process of maintaining the financial records of a company’s employees is called payroll management. It includes keeping a record of employee salaries, bonuses, net pay and deductions based on leaves, taxes and company policies. With the advent of modern technology, many payroll management systems have been launched that specifically cater to the demands of companies operating in India.
Earlier, payroll management had been a manual job in businesses and was prone to errors due to number of laws and regulations. Fortunately, those days are over.
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6 payroll management systems to consider
Payroll doesn’t have to be a stressful task for entrepreneurs and small business owners. Here are six ways to handle it.
- Microsoft Excel (free).
- Saral PayPack.
After we share our list of payroll management systems, let us discuss the benefits of having one.
1. Microsoft Excel (free)
Yes, you can manage your payroll with the help of free templates available on Microsoft Excel, especially if you have few employees. All you need to do is create a new document and in the search bar (top right), search for the payroll templates.
However, there are limitations attached to this method. You will still have to manually enter the data and feed formulas to calculate the salaries.
So, this method is best suited for solopreneurs or entrepreneurs who have one or two employees and want to save the cost of buying the software.
A less time-consuming option might be GreytHR. Founded in 1994, the company is headquartered in Bangalore.
Payroll management and statutory compliance are core offerings of this software. GreytHR not only automates salary disbursements, but tracks attendance. It also comes with a mobile app where employees can:
- Access payslips, reimbursements and tax info
- Submit trouble tickets via mobile Help Desk
- Apply for leave and get approvals online
GreytHR offers 100% regulatory compliance.
The platform offers a 30-day free trial, after which you can upgrade to a paid version. You can choose from three options (pricing).
Keka is another payroll management company founded in 2014 and headquartered in Hyderabad.
Keka offers a comprehensive payroll management software that:
- Manages and disburses salaries to the employees
- Handles leaves and bonuses
- Includes an employee portal protected by bank-grade encryption
You can access the software from anywhere since it is a cloud-based app and can be opened on any internet-connected device.
The platform offers a free trial and post that you can start with any of the three plans (pricing).
SumHR is another Indian payroll management provider established in 2013 and headquartered in Mumbai.
SumHR has a plethora of features that include:
- Employee salary management
- Income tax and deductions
- MIS reports
- Full and final settlement
Based on the number of leaves, attendance and company policies, the software calculates the deductions automatically.
Plus, SumHR is compliant with all Provident Fund & ESIC norms.
You can try the software free for 7 days and later upgrade for a paid program (pricing).
5. Saral PayPack
Saral PayPack provides an umbrella of features that include:
- Salary and reimbursement management
- Attendance, leave and exit management
- Employee self-service
In addition, the software handles all statutory requirements.
With Saral PayPack, you have two options:
- Saral PayPack can be used as cloud-based software (pricing) where all the data reside on the internet and can be accessed from anywhere in the world.
- The software also has an on-premise version (pricing) where the data can be accessed from the workstation only.
The multi-layered security system keeps the data safe even if accessed through the cloud.
Nitso is another India based company that offers a cloud-based payroll management solution.
Nitso is an all-in-one HR management solution that automates not just payroll but also:
- Supplementary payments and bonuses
- Attendance, overtime, paid time off and leaves
- Professional tax
- Expense claims
Nitso doesn’t appear to have a feature whereby employees can view or edit their own profiles or salary/tax information.
Benefits of using a payroll system
The first benefit of using a payroll management system is time savings. Every hour spent on a mechanical, no-brainer task is an hour wasted because that time could have been used on more meaningful work.
From employee attendance to computation of their salaries everything is automated (except for those using Microsoft Excel).
All you need to do is register the new employee whenever you hire someone.
As per the Indian Labour Law Act, any company that hires employees and pays salaries must maintain a record of salaries paid to the employees.
Having a payroll system in place ensures you abide by this requirement of the law. Generating reports is easy, should the need arise.
Saving financial errors
Any error made during the process of payroll management may result in financial losses to the organization.
Based on the tax slabs the tax liabilities of the employee are calculated and the Tax Deducted at Source (TDS) should be deducted from the salary accordingly.
Any non-compliance or non-adherence with the statutory law can lead to hefty fines and penalties.
Keeping employees’ morale high
Having an automated system of paying salaries that are correct in amount and made on time instil employee confidence in the system.
This confidence is important to keep their morale high so that they can put in their best efforts without having any doubts or concerns regarding compensation.
The joys of technology
Technology in today’s time has gifted us the tools that can replace hundreds of human work hours with a single-click solution and erroneous work with an accurate and error-free output.
It becomes a no brainer solution when we compare the cost of the software with the cost of hiring full-time employees (with all salaries and benefits) to do the same job.
Slowly and gradually, small and big companies in India are embracing digitization on the payroll management process.
The above-mentioned payroll management systems based out of India offers a customized solution for Indian companies that are aligned with the complex methods of salary calculations in India.
This post does not represent an endorsement of any of these products. Information was accurate as of publication date.