Running the financial side of a business, especially when it comes to paying employees, can be a tedious job. The process of sorting through loads of paperwork and ensuring everyone gets paid correctly is a task that needs a lot of attention to detail. Thankfully, there is a practical solution called ‘Payroll Automation’. Think of it as a helpful assistant who takes care of the time-consuming tasks, freeing you up to focus on the main parts of running your business.
Why Payroll Automation?
Moreover, dealing with complex paperwork and struggling with complicated calculations takes up a lot of time, and payroll automation is like upgrading from old-school accounting methods to a more advanced system. The software does the math for you, making sure each employee gets the right pay without any mistakes. Thus, this transformation turns the payroll process from something challenging to a well-organized routine.
Also, payroll mistakes can cause a lot of trouble. For instance, overpaying or underpaying employees can lead to problems, and automation lowers the chances of mistakes. The automation acts as a safety net, catching errors before they become big issues and ensuring a smoother and more accurate payroll process.
What is so cool about payroll automation is that it is not just handy now; it also grows with your business. As your company expands, payroll gets more complicated. Whether you are a small startup or a big company, payroll automation is a reliable friend. It makes things efficient and accurate, giving you a structured way to manage payroll. Furthermore, it is not merely a passing trend; it is a smart tool that makes your business operations more dependable and effective.
If you are still inclined towards the traditional payroll approach, let us have a look at how automation conquers it:
Traditional VS Automated Payroll
It is worth discussing how automation transforms the traditional payroll method. In contrast to traditional practices involving manual data entry and calculations, which often lead to errors and delays, payroll automation utilizes algorithms for swift and accurate data processing.
This approach eliminates the need for extensive paperwork, thereby reducing the likelihood of human errors and ensuring compliance with evolving tax laws and regulations. Additionally, automation easily integrates with banking systems, facilitating direct salary transfers and eliminating the necessity for physical checks or cash transactions.
The complicated process of Traditional Payroll Processing
Let us have a look at the general and bank-related processes & common requirements with complex manual/traditional payroll processing:
- Collection of various employee information without missing anything per the bank’s salary processing requirements.
- Track and manage employee attendance and leaves which is crucial for calculating salaries and wages accurately.
- Determine the salary structure and components, including basic salary, allowances, bonuses, and other perks.
- Ensure compliance with statutory deductions (PF, PT, Income Tax), including timely TDS deduction, Form 16 distribution, PF contributions, PT return filing, and ESI compliance if applicable.
- Issue a letter authorizing the bank to debit the employer’s account for salary payments, including authorization for statutory deductions such as Provident Fund (PF), Professional Tax (PT), and Income Tax.
- Depending on the payment method chosen, the employer may need to submit a mandate for ECS or NACH to the bank.
- Provide any necessary employee declaration forms required by the bank. Also, keep a record of statutory compliances and supporting documentation such as Provident Fund (PF), Professional Tax (PT), and Income Tax returns.
- Generate and submit necessary reports to regulatory authorities. Also, understand the bank’s requirements for reporting salary transactions and returns. Ensure that necessary reports are submitted to the bank in the required format and within the specified timelines.
- Process salary payments through the chosen mode (bank transfer, cheque, etc.).
- Perform year-end reconciliation of payroll data.
- Conduct and address any discrepancies in internal and external audits to ensure compliance with labor laws and regulations.
Sounds complicated, right?
On the contrary, here’s how the payroll process is simplified with the use of payroll automation software:
Payroll Automation Software makes the process easy
The payroll automation with Accosis takes care of not just salary processing but various HR operations, compliance, and employee benefits. Read on to learn how it beats the traditional approach by simplifying every other payroll function and eliminating the need to outsource it
Employee Self-Service Portals
Employees can log in to their self-service dashboard to update personal information, and tax declarations, and view their pay stubs. This helps to reduce the administrative burden on HR teams for manual data collection, entries, and updates.
Automated Time and Attendance Tracking
Payroll automation software is integrated with time and attendance systems to automatically capture employee working hours. It also minimizes manual data entry errors and ensures accurate attendance records. Further, it automates the calculation of the salary.
Employee Database Maintenance
The system stores and enables quick retrieval of accurate data for payroll calculations with employee information, including bank details, salary components, and tax-related information. On top of everything, it systematically oversees the onboarding to exit processes.
Salary Structure Set-up
HR professionals can easily set up and configure complex salary structures. Further, it can automate the calculation of various components such as basic salary, allowances, benefits, and deductions.
Tax Calculation and Compliance
It automates income tax calculations based on the latest tax slabs and rules. Also, it generates accurate Form 16 and other tax-related documents automatically.
Deductions and Contributions
It can automatically calculate and deduct Provident Fund (PF), Professional Tax (PT), Employee State Insurance (ESI), etc. Moreover, it ensures compliance with applicable labor laws and regulations.
Easy Online Salary Payments
Process salaries easily through various payment modes such as IMPS, NEFT, RTGS & UPI and reduce manual efforts in generating bank files, and facilitate timely salary payments.
Payroll Reports, Analytics, and Reconciliation
You get real-time access to payroll reports and analytics to quickly perform analysis of payroll data, allowing HR teams to identify trends or discrepancies promptly. Also, you need not worry about accounting errors when using Accosis due to the accurate auto-reconciliation process.
Automated Generation of Payslips
The payroll automation software generates digital payslips automatically for each employee. They can access their payslips online, reducing the need for paper documentation.
Audit Trails and Compliance Checks
It maintains detailed audit trails for all transactions and also performs automated compliance checks to ensure adherence to legal and regulatory requirements.
Effortless Year-End Processes
The year-end processes of reconciliation, generation of reports, issuance of Form 16, and other year-end documents become simple.
Easy & Automated Payroll Processing with Accosis
Accosis transforms the often challenging task of payroll processing into a stress-free experience. Their automated system takes care of the smallest details, making payroll management easy. What makes us stand out is our ability to connect with other essential fintech tools from simplified accounting to efficient banking, cash management, and easy payouts.
Thus, we create a cohesive financial ecosystem for businesses. It is not just about payroll; it is about simplifying the entire business payments and financial processing. With Accosis, businesses can navigate the complexities of finance with ease, leaving room for what truly matters – growth and success.
Sign up today or get in touch with any questions!
