Irrespective of the type of business or the vertical it functions in, processing payroll is a challenging task for HR folks. Especially, for a department (HR) where there is already so much to look after, payroll is like ‘bone within kebab’.
Payroll is an error-prone process , which can cost a business dearly in the form of heavy penalties if done without an automated HR system. The consequences could be very severe. They include wrong salary being accounted, wrong attendance data being fed, incorrect tax deductions, delayed salary, etc.. Thus, leading to an unhappy staff.
Listed below are some major payroll difficulties that businesses face:
Misclassification or not creating separate database for different categories and departments can lead to false payroll. Putting freelancers/contractors and full-time employees on the same board for payroll may create bottlenecks in your payroll process. Instead workers must be distributed category wiseand payroll must be processed with unique ESI and PF cuts.
- Managing overtime-
At times, calculating the exact pay for exact worked hours is difficult for contract-based workers and freelancers. They are paid for their worked hours or minutes. Computing accurate salaries for such employees is not easy. Here, an HR software with a robust time tracking software or module can be a genie for you. Along with providing proper invoices/payslips for tracked hours, it ensures payroll accuracy.
- Timesheet management-
Timekeeping on your own or relying on various third party applications may not be good. There are people, who resort to old-school methods when it comes to timesheet management using pen and paper, which leads to inaccuracies in payroll., A reliable HR solution with a timesheet management system can be helpful for automating timesheet management.
- Being compliant-
With such a complicated tax system in India, compliance management is undoubtedly a big hurdle for businesses. Knowing and keeping abreast with each parameter like Form 16, TDS, tax slabs, etc. is the need of hour for every business. Failing to which would cost a huge disaster incurring heavy and penalties. Better go with a trusted HRMS system to ensure statutory compliance.
A trusted human resource management system or HRMS is a boon to businesses. Subscribing to one might boost your HR department’s overall productivity and operational efficiency whilst keeping statutory hurdles at bay.