The responsibilities of HR Management are manifold, and the hassle of payroll calculation leaves no room for strengthening employee relationships for HR Management. To reduce these challenges, a Payroll Management System comes into effect.

But what is a payroll management system and what is the need for a payroll management solution in 2023? Let us find out in this blog,

What are the challenges of Manual Payroll Calculation?

Investing your time, energy, and money in manual payroll calculations can turn into waste due to the inaccuracies and mistakes associated with manual processing. Here are the various risks and challenges associated with manual payroll calculations that a business needs to look out for,

• Ever-Changing Statutory Compliance

The compliance guidelines and regulations for HR and Payroll Management are constantly changing. While calculating payroll manually, there is a constant need for the management to stay updated with these changes, which in turn is a time-consuming process. Moreover, there is a higher risk of missing out on these regulations and having to pay heavy fees and penalties.

• Unifying Data from Multiple Sources

In the absence of a systematic payroll and hr management solution, payroll computation can be a tedious task as employee data is scattered and unorganized. Having to go back and forth between attendance registers, salary sheets, and other employee records can deviate the HR Managers from their core responsibilities.

• Higher Cost of Operations

Payroll calculation is a routine activity for any organization, and manual computation of payroll is not only time-consuming but also high in cost. Handling the payroll processes of an organization requires a dedicated team and resource allocation, which can ultimately bring up the overall cost of operations.

• Privacy Breach and Security Issues

Your company’s payroll and salary information is confidential and protecting such information is important for any business. Manually calculating payroll puts such business data at risk of leakage, loss, and alterations, which may have an adverse effect on the reputation of your business and the privacy of your employees.

• Manual Errors and Other Mistakes

Any activity involving human intervention is subject to errors and inaccuracies. Manual computation is at a high risk of mistakes in attendance tracking, documentation management, leave records, and so on.

What are the benefits of a Payroll Management System?

The advancement in technology and the dynamic business world calls for a secure and automated solution that helps you get rid of the risk and challenges associated with manual payroll calculation. Here is how a payroll management system can help you get rid of all the payroll calculation challenges,

• Save Time and Increase Productivity

Payroll computation is a tedious and time-consuming process that requires the finance team to keep track of multiple records and information.

With the help of an efficient payroll management system, you can add automation to the otherwise challenging task of payroll calculation. This can help your business increase productivity and time efficiency, allowing your team to focus on core areas of improvement.

• Reduce Errors and Ensure Accuracy

The risk of inaccuracies and errors is high in the case of manual payroll calculations. Mistakes in payroll can not only bring down the morale of employees but also cost heavy penalties.

A payroll management solution saves you from such risks and challenges by ensuring accuracy in payroll calculation. The automated solution collects data from multiple sources and helps you calculate payroll with complete accuracy.

• Enable Security and Privacy

Manual payroll calculation processes put your confidential business data at risk and damage your business integrity.

Payroll solutions save your business data from human intervention by limiting access to confidential information. This helps you increase your data security and the privacy of employees.

• Stay Updated and Compliant

Keeping up with the changing regulations and statutory compliance related to payroll is a tedious and time-consuming task.

A payroll management system saves you from the hassle of staying updated with the latest compliance requirements and implementing these changes in payroll calculation on a real-time basis.

• Increase Transparency and Reliability

With a payroll management system, you can build transparency and strengthen trust among your employees.

By reducing errors, ensuring compliance, and enabling security, you can build trust and reliability. Moreover, by providing limited access to personal details, benefits, time, and attendance information to the employees, you can increase transparency.

How to Choose a Payroll Management Solution?

The marketplace is flooded with various payroll and HR management solutions that guarantee compliance and accuracy in performing HR management activities. Choosing the right solution that fits your business needs careful consideration and evaluation.

You can start by asking yourself the following questions to ensure the right choice of Payroll Management System,

• Is the Payroll Management System compliant?

When seeking an HR PMS, make sure that the solution is compliant with the updated statutory regulations of your region and supports regular updating of the solution as per the ongoing changes.

• Is the Payroll Software secure?

Data security is the priority of any organization, and ensuring the same is immensely important. The right payroll management software must follow data encryption standards and be equipped with necessary security measures.

• Is the solution easy to use?

The prime responsibility of a payroll solution is to simplify the complex task of payroll calculation. The right solution should be easy to use and be able to serve the purpose of increasing time efficiency while ensuring cost-effectiveness and productivity enhancement.

What is the best Payroll Management System for your business?

Seeking a payroll management solution that can simplify your routine activity of salary and payroll calculation? Your search ends at Webtel, the best payroll management service provider.

Here are the distinct modules offered in HR Pearls by Webtel to simplify the payroll process,

• Salary Calculation: Calculate salary with relevant deductions and incentives in a single click.
• TDS Return: HR Pearls facilitates seamless TDS Return filing and generation.
• Revised Returns: With Webtel's advanced payroll management system, you can also generate revised returns for salary.

• Salary Calculation: Calculate salary with relevant deductions and incentives.
• Reimbursement Management: Track employee expenses and reimbursement details.
• Loan & Advance Management: Manage employee loans and advance details and policies.
• Over Time Management: Keep control over time tracking, overtime payments, and approvals.
• Bonus Calculation: Easily calculate monthly, quarterly, and annual bonuses.
• Full & Final Settlement: Clear overdue payments at the time of full and final settlement.
• Tax Declarations or investment proofs: One place for tax declaration and investment documents.
• Gratuity Calculation: Accurately calculate the gratuity benefits of employees.
• Payslips & Reimbursement Slips: Maintain and manage salary slips and reimbursement slips.
• Bank Transfer Sheet: Store bank transfer sheets at the time of salary payment.
• Salary Register & Various reports: One place for all the salary details and employee reports.

Know more about HR Pearls, the best HR and Payroll Management Solution for Business