The Significance of Payroll Software
Payroll is an important process for a business owner to pay their employees for the work they have been carrying out. An efficient and effective payroll software that can pay their employees on timely manner and comply with any government statutory deduction, yet it helps the company keep the file virtually.
Compared with paper-based manual system
From 1 April 2016, Ministry of Manpower announced that all employers must maintain detailed employment record and salary record of employees who cover by the employment acteither in the way of soft or hard copies. Existing employees shall keep the copies of the latest 2 years and for former employees shall keep the copies last 2 years. Compared with paper-based manual system, cloud-based payroll software makes the whole HR functions become more convenient and easier for company in compliance.
In the old way, paper documents can take up a significant amount of space, and the company still have to spend on paper cost. Besides, printed documents can be easily lost, mishandled or damaged while virtual filing cabinet can be encrypted to keep in cloud storage and easier to access all employee databases or track the past paid salary record.
Transporting documents in a paper-based is quite complicated, slow and inefficient. And if you want to make changes in the payslip or any application form, you will need to write the entire content again. With digital payroll software in place, you can simply key in new data, update or make amendments into profiles.
One of the biggest disadvantages of paper-based document management system is the associated cost and time. In addition of tons of paper, you still have purchased the printers, photocopier, stationery, workman salary, and other office supplies. These costs add up into a month can be a significant expense, actually going with digitalizing some unnecessary printed documents can be prevented.
On the other hand, using more paper is bad for the environment and it would not bring any help in boosting the company’s green credentials. Nowadays employees are more preferring to work for businesses that prioritize sustainability and many consumers also prefer environmentally friendly because it show the company are innovation and flexibility to adapt change.
Payroll software keeps real-time record of staffs check-in and checkout time and the number of leaves approved to be taken during a month. With time attendance feature it help to eliminate recordkeeping errors by accurately keeping track of total workedhours and overtime worked. Payroll software also allows authorized personnel to monitor login and logout time of their employees. Thus,HR personnel can use the average working hours spent by the employees and measure their productivity individually according to their work. Therefore,in the data metrics itis very straightforward to point out towards those who need to improve their performance levels and meet the productivity standards.
All Staff Salary Calculation
With the use of payroll software it can automatically generate itemised pay slips, stubs and allow direct inter-banking. The system will compute all types of payment, such as basic salary, allowances, bonuses, pay raises, deduction of wages, reimbursements, overtime and commissions. The final pay-out result is reliable and without any mistakes if the entries key in are correct. It minimizes the human error and make the payroll process become more efficient.
Sometimes it may incur unpredictable changes in costs and pay rates and are a big challenge to calculate accurate payrolls. Payroll software makes the amendment process become eases offering mid-period rate changes and doing the calculations automatically. After making a correction, authorized personnel can get it verified from the employees and carry it forward for future transactions. Thus, payroll software enhanced the overall processes and effectiveness. Besides, It gives the company enjoy real-time tracking of all human resource activities, maintain up-to-date employee data, monitor and control flow of personnel information and are truly secure.
Productivity and comply with CPF/IRAS regulation
Payroll software eliminates many cumbersome. Most important, it increases the productivity of the company while their on-house accountant can have a good work-life balance to do other information research or cost-saving budget planning. It also calculates the employee’s monthly CPF contribution and IRAS tax deductions accurately and paid in a timely manner, which helps to avoid from government’s penalties.
Reduce Accounting Workload and Save Time
When the board of management request for the company business records, payroll software is your ultimate business choice to provide on-time tracking and records.The software is quickly integrated with other business software and provides automatic entries during business audits. It helps the company avoid any manual entry accounting errors and also eliminate the mistake make in doubles entries.
Manual payroll calculations worksheets often involve complex calculations of remuneration and taxes, which have to spend a lot of time to monitor and checking. With payroll software, company HR or accountant can work smarter to save the time on checking the equation and make efficient use of their working hour in other work domains instead.
Integrated Access to Information and Strategic Planning
Payroll software also allows authorized person access the employee profile in anytime, the profile include the basic pay rate, annual leave granted, performance records and any benefits-in-kind entitlements. The authorized person also can access to their past salary record and any reimbursement given. If wish making any adjustment or changes to each worker only takes a few seconds. With all this functionality and information payroll software aids in the strategic planning, decision-making process and take any contingency plan of the company.It give a vital information that helps the management to pay attention on important issues and finalise decisions. The software also can use to predict future workforce cost and helps the management to determine future goals to direct them in the right path.
For startups firm and SMEs, communication is very important. In emergency situation it enables easy access to basic information such as employee full name and contact number. Cloud-based payroll software helps when management quickly want information. Any kind of information is valuable when is used as data for analysis, there has been a tremendous growth in analytics. Employees’ data can use demographic information to make important decisions, it can used to decide celebration days, policies or service year award based on the hire dates. All this event or rewards only possible when that data is available, and that can only happen when employees completely share and fill all relevant details in their profile pages.Important note it is necessary to ensure what kind of employee information is necessary to be shared and what is not.
The workforce is one of the most expensive items that impact the growth and productivity of the company, especially in Singapore it comprised of different country of people. Most all business owners perform more than one role in his own business operations, it is a heavy duty for them to ensure all departments are performing well and maintain its profitability.
Pay punctuality is important, as according to Employment Act, the company must pay their employees at least once a month and within 7 days after the end of the salary period, so it is important in payroll functions paying employee salary on a consistent basis without delays and accuracy. If paying salary late, employees will start to doubt the financial integrity of the company and it will affect the morale of the employees by starting care less about their job. If a serious employee may file a case to Tripartite Alliance and eventually it may affect the company image to the public or potential investor. As a result, there are many benefits companies should install software to better manage employees.With the help of payroll software it reduce human errors, submit flawless work and better data analysis.