Payroll Management System

Payroll is defined as a method of administrating employees' salaries in the organizations. The process consists of calculation of salaries and tax deductions of the employees, administrating the retirement benefits and disbursements of salaries to employees. It can also be called as an accounts activity which undertakes the salary administration of employees in the organization. Administrating the employees' salaries is not a simple task, the HR and accounts department work together to calculate and give out the salary to the employees. Thus, payroll management can be further subdivided into two sub processes, i.e. Payroll accounting and payroll administration.

Payroll systems increases functionality and enables payroll to access, process, operate and manage all areas of the payroll functions. Inquiry, reporting and analysis tools found in most of the ERP systems help managers have a clear sense of view. Integrated payroll system are best suited for evolving businesses or organisations.

There are several benefits of an organisation adapting an Integrated payroll system with an ERP. The benefits are:

1. Employees can easily access information.

An payroll system creates a pool of Information and data that can be made available together at one source point. Employees are able to access the system and get information about the payroll, sick time, current tax deductions, benefits and available vacation time.

2. Reduction of paper work:

An integrated payroll system helps reduce the paperwork. Since everything is updated on the system any communication is done using this system reducing communication by way of memos which some employees may not see in time. Integrating payroll system reduces the paperwork involved in collecting and inputting employee data. Once the information is entered by the HR personnel it can be accessed by the payroll.

3. Increased accuracy:

Since data is entered once and from one source this will increase accuracy of the information being entered. This will also save time and prevent errors and discrepancies that could end up costing the organisation a lot of money. It also eliminates duplication errors as any changes made reflect and are updated immediately .Using an integrated HR system can also help improve data security. Most of the information contained in both the payroll is private and confidential and is highly sensitive. Integrating payroll systems into high secure platform can help protect the data.

4. Enhanced collaboration:

Integrated payroll system increases synchronisation and enhances collaboration within the payroll functions.