Five Payroll Software Must-Haves
Choosing a payroll solution today is a daunting task. A simple Google search for “cloud payroll software” yields about 11, 50,000 results precisely, with so many payroll options to choose from. Now, zeroing in on the right solution can be as tiresome as crunching those payroll numbers yourself. Add to that the concerns that every business owner goes through – “Will my data be secure?”, “Will my business stay compliant?” and “Will the software ensure that my employees are paid on time?” Answers to these questions will surface only if you dig deeper while choosing your software.
Also, are you making the mistake of going for the ‘good looking’ software? Is buying a solution with a gorgeous interface the only checkbox you need to tick? They say beauty is skin-deep and, yes, it applies to your payroll software, too! While user experience is very important, there are other aspects you also need to take into account.
Here’s a helpful guide to the basic building blocks that are needed in an ideal payroll solution:
- Invest in a Payroll Solution Supported by the Right HRIS
The first consideration is to choose a payroll system which is well integrated with the HRIS. The Human Resource Information System acts as a data source to your payroll engine. If you take a close look at your pay slip, you will see that it contains not only basic employee and pay information, but also other details such as grade or pay-range and leave and absence data. Your HRIS is the source of all of this information and the correct replication of data is only possible if your payroll system is integrated with it.
Integrating payroll with an HRIS is not challenging, but it does need to be done right to avoid payroll mistakes. Your HRIS needs to be capable enough to handle effective dates to keep track of the payroll changes that have occurred since the last run. With components such as pay ranges and pay grades well established in an HRIS template, you can effortlessly run your compensation cycles. A fully integrated HRIS is the key to making sure that your employees get paid on time and correctly.
- Safeguard your Business with Automated Payroll Compliance
Once the foundation is set with the right HRIS, the second consideration is whether your payroll solution accommodates the ever-changing tax laws. Think of payroll compliance as the pillars of your payroll system. Non-compliance could lead to heavy fines, and the fluid nature of the challenging tax laws requires administrators to constantly monitor the changes and incorporate them in their payroll system. And this is not a small number of changes to handle. The financial year of 2016 alone saw an average of seven (7) compliance changes per month.
This places the onus on businesses with minimal payroll expertise to adopt a payroll software which is 100% statutory compliant and automatically incorporates compliance-related updates and enhancements. You no longer have to worry about PF, PT, LWF and ESI calculations. Everything is done online and, rest assured, you need not worry about the nitty gritty details of compliance anymore.
- Choose a Solution Backed by Efficient Reporting and Analytics
Payroll is not only one of the most important expenses for your organisation but is also a goldmine for inference from both your HR and Finance functions. Payroll analytics is a key method of understanding where your money is going and what benefit your business is deriving out of this expense. The right software can help you draw insights on department-wise budgetary and compensatory breakdowns, provide statistics on employee count, salary and benefits, as well as derive analytics on your workforce such as hiring statistics and turnover rate. It could also help you understand costs such as overtime and absence, and help you in taking measures to cut costs and improve efficiency.
Payroll analytics could help finance teams in deriving accurate forecasts over a year that will really help them to budget accurately and manage cash flows. Payroll data coupled with employee performance goes a step further in helping you craft strategy and successfully tackle employee attrition, improve employee satisfaction and measure revenue per employee. The right payroll software incorporates the best of analytics and helps you stay on top of your data without breaking a sweat.
- Data Security – The Need of the Hour
Your employees are your greatest asset, and any job which involves handling sensitive employee information such as payroll data should be carried out with the utmost care. Cases of data breaches are making headlines ever so often and it is important that your payroll system is fortified with the right security protocols. The best way to secure your payroll data is to get your basics right. Understand what the sensitive components of your data are, set rules on who should handle it, implement technical controls in place and, most importantly, educate your users on the importance of safeguarding sensitive information.
Security is crucial for suppliers of cloud-based payroll software. The right payroll software assures that your data is blanketed by several layers of data encryption, with state-of-the-art intrusion detection and real-time anti-malware updates, and ensures that all your payroll data is stored in a secure data center underpinned by world-class technology. Storing your data in such a center ensures that it is protected by the best in data protection features and security accreditation. A secure data center comes with facilities for automatic back-up and disaster recovery, which ensures that business continuity and capacity planning is in place and your payroll data is well taken care of. Security accreditations such as ISAE 3402 Type II and ISO 27001:2013 ensure that industry standards for data security are adhered to.
- Build for the Future on a Platform that can Support your Growth
You could be a budding business today, and you may have plans to build, nurture and grow your business in time. But what if your technology does not evolve to support you?
Your payroll solution needs to be scalable to accommodate future growth, and configurable to address varied pay structures. It should increase your productivity through better human resource management. There is no point in buying a software that will not grow with you. Before you invest in a software, ensure that it is flexible enough to support all of your payroll activities in the long run.
A simple and accurate payroll system can help you tick all your checkboxes before making your investment. As a small business owner, you give a lot to keep a business moving. Today, gift yourself a cloud payroll solution that can help you get back to doing what you do best – building your business.
*Images credit: Freepik.com
Curious to know more about how HRIS can help you? Have an ADP expert contact you.
This post is part of our ongoing series on HRIS. Read the other posts on this series: