Top Functional Requirements of Payroll Management System

It isn’t easy to keep track of the payroll of employees manually. The right payroll management software can make the process easier by avoiding missed deductions and taxation compliance. However, selecting the right payroll management system aligned with your business needs is crucial—for this, chalking out the functional requirements of the payroll management system is essential. 

Every organization has different needs; while some organizations may need pure compensation functionality, some other companies may go for comprehensive features such as employee management and engagement, reporting, and compliance management. If you are thinking of adopting a payroll management system, this blog will provide you with the functional requirements of a payroll management system. 

Here are the functional requirements of a payroll management system you should consider before adopting any payroll system. 

Payroll Management System Checklist

Payroll Compliance

It is crucial to stay updated with tax laws and regulations to avoid getting into legal trouble. The payroll automation system helps in this regard and streamlines the process. 

The system helps with automatic tax filing and withholding. Provident Fund calculations are essential; the system allows the organization to do these calculations automatically. 

Besides that, the system keeps the employees updated on any law changes that could cause an error with compliance management software. Finally, it handles the entire system process, from completion to submission of the tax forms. 

It is important to keep track of insurance-related computations. The software helps to conveniently integrate insurance-related computations and adjustments per your organization’s insurance plans. 

The payroll management system also stays updated on compliance with EOBI and government social security laws. 

You can download a summarized list of the payroll requirements below.

Compensation Management

It may get challenging to manage compensation correctly. However, the right payroll software helps your organization manage and plan its compensation strategies so that your employees receive a competitive and fair salary.

Manually checking pending salary revisions can get hectic. However, the payroll software can keep track of the revision cycles, and you can revise a salary in advance by scheduling a revision. 

Your company can also budget for multiple job roles using payroll automation software. 

Check a summarized list of the payroll requirements below to get a better insight. 

Expense Management 

Managing expenses is hectic, including business expense entry, streamlining review, paper trail, and administrative effort. Payroll management software makes this process easy by automating the entire process. 

You can automate your employee expense claims, reimbursements, and expenses such as official traveling, medical, food, etc. In addition, some systems visualizations provide insight into a company’s processes. 

It can help businesses to make tailor-made policies over time and observe the effectiveness of these policy changes. 

Loans and Advances Management

Employees are an asset to any organization. It is imperative that they are provided in times of need. This process, however, can be a pain in the neck administratively.

However, a payroll management system can help streamline this process and makes it easy for the entire organization, including the HR and Finance departments. The payroll software helps design eligibility and loan policy criteria and modify Equated Monthly Installments (EMI) deductions.

The payroll software also helps make the EMI management process extremely simple. With the right tool, the disbursement of loans and recovery of monthly installments is no longer an issue. 

Dashboard and Reporting

The right software shows data as reports, providing insight into current processes. Instead of just observing trends, HR professionals can interpret findings to make predictions and then make decisions based on those predictions. 

A checklist is given in this blog to provide a better idea about this feature.

Mobile Integration

Today everything has been digitized, and with everyone on the go, it is crucial to have mobile capabilities. Integrating the system with the mobile application can facilitate managers to make decisions from anywhere and track anything related to payroll and other activities anywhere. 

Now with geo-fencing, the employees on the field can also record their hours on the application. In addition, the employees can check in and out from the field they are assigned to. 

Platform Checklist

It is essential to analyze the platform. Services like Self-service portals, calendar views, and document sharing are significant to consider when considering adopting a payroll management system. 

Employee self-service portal allows employees to view payslips, leave balances, and attendance, manage and keep track of attendance, and make requests. 

Data Security 

Today, security is a big concern. However, not giving attention to the security matter can get you into trouble with the authorities as there is security compliance that a company has to follow. 

It is important to keep the personal data of the employees of your organization safe. 

Time and Attendance 

Most HR software offers the facility of time and attendance. Time and attendance are a must for the payroll management system as employees’ salary is based on the hours worked and attendance.

Employee’s history, performance, compensation, and benefits also affect the salary. This information is stored where managers and team members easily access all HR resources. 

Users can view and update personal details.

In addition, with comprehensive payroll, HR departments can merge all necessary functions into one software.

Payroll Management System

Much software available in the market offers the facility, but most don’t provide comprehensive systems fulfilling all the features mentioned above. 

Resourceinn is an all-in-one HR system and payroll cloud-based software. It incorporates all the features and requirements mentioned in the blog and more. You can book a demo with us if you are looking for a payroll system that fits your business needs