What does a payroll management software do?
You’ve learnt what is payroll management software, but what are its uses? Payroll management software automates, streamlines, standardizes and centralizes payroll processes. Specifically, the following features of payroll management software accomplish the myriad aspects of payroll, from calculating wages and taxes to planning employee benefits and managing attendance.
Wages are automatically calculated based on your preset schedule: daily, weekly, bi-weekly or monthly. This, in fact, is one of the main advantages of payroll management software. The module consolidates wage-related items like attendance, salary grade, benefits, reimbursements, leaves, advances, taxes, terms and policies, etc. to compute wages. Most solutions need only to be manually set up with your rules, then the system takes over the payroll process. It can be customized along multiple pay and benefits structures and further configured for specific employees or contractors.
Expenses, deductions, loans, advances and other employee costs are entered, tracked and calculated in this module. Some payroll systems feature a loan ledger to account for all approved employee loans. This module may also handle reimbursements based on approved expenses.
Benefits, bonus management.
The module manages various benefits claims and employee perks. Bonus calculation is calculated on the fly.
Income tax & deductions.
This feature processes pre- and post-tax deductions. It helps you comply with various state taxes and social security requirements. The system automatically does the calculations based on latest regulations.
Compatible with Time and attendance tracking.
Standalone payroll management software may include timesheets or a time-tracking feature to imported from 3rd party softwares to manage attendance. This module import absences, increments, leaves and attritions and sync these data with wage calculations. Some advanced features let you manage multiple shifts and transfers and 3rd party biometric integration to show real-time clock-in/out.
This is another key feature, which generates payroll reports like salary statements, benefits reports or leave summaries, payslips
Payroll management software also acts as a central repository of employee records and related documents. This usually include employee profiles.