What is payroll software? – An Introduction

There has been a proliferation of the number of companies in the recent times that have increased their business to mammoth proportions. There are many employees working in such companies and it is a real pain when you are the head and you need to manage the salary structure of each employee.

There are many solutions in the market but the most reliable is the payroll software that makes the process of calculation of salary a breeze. The next few lines would give an overview of the Payroll system. The dawn of computer revolution has changed the way business is conducted in different sectors of the economy. The conventional office has transformed itself into the paperless mode. As a result the management of the organization is able to automatically create salaries based on the taxes and the deductions.

It is very important to know the important attributes of the payroll system. For start it provides comprehensive information about the employees. There are different fields like the employee name age and date of joining. It is very important to know the third options because based on that the salary is calculated.

It uses programming language to design the user interface and the database to store the important data about the employees. It is imperative that you enter the required information about the employees in an accurate manner because any discrepancy in entering the data may lead to incorrect assignment of the salaries. The modern payroll system also counts the number of days for which the employees took leave in a month. Many companies follow different policies in calculating the net salaries.

Some organizations provide a day off in the month and for the next subsequent days they deduct from the basic pay on a pro rata basis. The salary of an employee has many components but the most important of them are the basic pay Home rent allowance and the transport allowance. The incentives are offered as a reward on the performance and they are included in the calculation of the gross salary. The payroll software helps in preparing the virtual copy of the salary slip and also helps in the printing of the same.

When the employee takes loan it is also registered with the software and the employee gets a rebate on the total taxes. The insurance schemes feature as well in to the overall scheme of things. The software follows the latest TDS principle that helps you to evaluate the exact amount of taxes. It takes into account the interest provided by the bank and others. 

The government charges 10% on the interest. The gift taxes are only 2% that are also managed by the virtual application. The payroll software is customized according to the requirements of different organizations because their requirements and issues are also varied.  In event of the non existence of permanent account number the rate of taxes become double which is taken into consideration when creating the software. It is therefore advisable to apply for the number if you do not have it.

Web based Vs Online Payroll Software

The launching of the different software applications in the market has confused the users in a big way because they are not able to comprehend as to which software they must use to beat their rivals in the particular product domain. Different types of companies that operate in other countries have multiple rules and guidelines that they need to adhere to in order to attain the desired improvement in the methodology and the seamless integration of the Payroll Software in their system. 

It has been the topic of discussion since the start of the millennium that which software is the best. One school of thought says that the online management system is better however another view has emerged in the recent past and it says that the web based is ahead in terms of quality.  The web based payroll system provides amazing array of features that seem to dwarf the online version.

The payroll software provides the creation of the company on the remote web server and it helps to designate a financial year as well in which you want to calculate the annual salary and the taxes. The complete information about the employees is stored remotely which makes it more secured and you can also save on the money because it is not needed to buy expensive storage space for data. The documents for the company consumption can be uploaded on the server and can be seen by the branches of the company located across the globe.

The pay slip and the employee verification information can be retrieved from the database that is normalized to the core and is quite efficient in performing search. The web based software is useful when the company has units that are located geographically apart and a network between the systems is necessary to coordinate information. The online system is basically used when the company is small and all the employees are located locally. If the company expands it would be advisable it switches to a web based solution. It provides for an individual password for the employees to ensure security and the integrity of the software. 

The Payroll Software has made it possible for the managers to assess the history of the employees including the blood group and its past job history.  It also plays a very important role in tracking the status of the job application of the prospective employees. The overall feedback is very important in hiring of the new recruits. 

If the employee has to apply for leave he can login to the system and write an application to the required authorities using the user interface of the application and send it to the web server of the company thereby speeding up the process of the sanctioning of the leave which is not possible in the online mode. If the employee has performed transactions with the bank the same information is stored in the database that is automatically subtracted from the salary if it is an earning. One the other hand in case of a loan he might get a rebate on the income tax deductions.

Payroll Software application in industries

In the modern world every country has joined the rat race of globalization and they are following the simple rule of decreasing the interest rate and increasing the cash flow in the economy to achieve growth however in the long term it is very crucial that the infrastructure is developed to accomplish higher development and progress index. The Launching of the different industries both hardware and the software has led to a tremendous demand in the job market with more and more people joining the work force that has made the employee management a difficult task for the companies because the number of employee ids just got bigger with each day and a yardstick was needed to measure the performance of the professionals working in the organization. 

The Payroll Software stepped in to fill the void because it has made the task easier and also helps in performing valuable operations that previously were very difficult to accomplish. In the iron and steel industry which is a labor intensive industry it has helped to gauge the overall efficiency of an employee by calculating the number of work hours he or she puts in and how much is the output. The overtime allowance issue is a big problem but the software solves this problem in a simple way and adds the total amount to the salary as an overhead incentive.

In the software industry payroll software plays a very important role because to measure the productivity of an employee is based on entirely on different parameters as compared to the hardware discussed above. The software work hours spent on designing a project are the important criteria for judging efficiency and another important parameter is the scope of error that are committed during the testing of the project. The basic functionalities required during the calculation of the insurance paid by the employee and the numbers of dependents are very crucial in arriving at the final result and the software exactly does that.

The Payroll Software is also instrumental in preparing the day book for the employees that consists of the expenses incurred by the individual and the amount can be deducted from the salary by the end of the month. If the payroll report is not processed in a timely manner and the salary experience delays because of the hiccups it might lead to large scale tax deductions which is not desirable by the company and would lead to the loss of the morale of the employees. Some packages also provide the facilities of accounting as an add-on services that can be used by the financial professionals of the organization. 

The complete report can be send to the accounting department so that it examines the leave and the TDS modules. The above information could be used by the accounting department to prepare the balance sheet for the company in the current financial year. The ESI and the provident fund information are also available as the part of the documents that would help in the overall process of accounting. In the hindsight the tool has become so important that every industry is running one version or the other.

For more information on payroll software, visit our website.

Payroll Software for small businesses

The massive industrialization in the recent times has created an insatiable appetite among the companies to aim for higher growth where in the sky can only be the limit. The focus is on developing the creative aspect of the employee s that has increased the probability of the invention of new products for the market. These products help in making the life of the common man easier. It is a well known fact that the launch of the Payroll Software has immensely benefited the small businesses because it helped them to cut costs and reduce the expenditure. In the hindsight it is obvious that most of the time a small company operates on a very low profit margin and order to increase the sales it needs to lower the profit. 

The system actually helps in doing that because to manage and operate it is not a very difficult task because lots of manuals are available in the markets that help to understand the software better. The customized version takes care of the need of the organization because the number of employees is less so there would not be many complexities that sometimes are the hallmark of the big payroll projects.

The modern software or payroll software consists of different parts that focus on the problems areas. The most crucial aspect is the identification of the employee management and the work activities that he pursues in the company for a particular period of time. The software keeps an accurate record of the presence and the absence of the employees at the work place. In event of any transaction with the company the software allows for an easy opening of an account in the employees name that identifies the money flow under the debit and the credit heads of the organization. 

With the help of the system the small business exactly knows that how much it needs to give to its employees how much is to be recovered from them. The filling of the different governmental forms can prove to be a real pain in the neck for some employee and the software intends to correct the anomaly in the short and the long term. The forms of the provident funds are available as a download link from the website of the company. The employee needs to copy it on its own system and upload the form after properly filling it. The provident fund is deducted at the time of the salary and is added to the account. The amount is later given to the employee from the account if he claims for the same.

The Payroll Software has made tremendous strides because majority of the companies have integrated the above system in the work place. In the past it had been a daunting task for the midsized companies to get the exact amount of package or money given to the employees but in the current scenario the degree of the flexibility in opening more than one company under the different heads of the accounting system is amazing that makes the whole salary analysis process a pleasure for the customers. 

In the present time some companies are also offering the security system as a part of the attendance management system that keeps track of the employees even when he leaves the premises of his organization. The data is not fed manually but is entered through the access card that is given to the employee in case he becomes a full time member of the company. Thus you can say that in this case the entry has become fully automated making it less prone to the human errors. It has proved to be beneficial and also keeps track of the attendance with the salary issue.

For more information on payroll software, visit our website.

Saving time with Payroll Software

The financial sector has been churning in the recent times because the banks have specialized themselves in making customized financial products and intense pressure is exerted on the employees to market them lock stock and barrel. The intense competition has led to cut throat price slashing and attractive interest rates to the customer. The objective is to get maximum investments from the customer that in turn would help the economy. 

The Payroll software was launched to solve the longstanding grievances of the employee who were involved in an unnecessary hassle with the human resource department in the past when the manual entry system was followed to evaluate the salary.  The various income tax reports that are needed to be filled in by the employees are numerous if they are done in the offline mode and would take too much time. The preparation of the salary report for 6 months would take lots of time if it is done manually because the data has to be physically written by the department that would consume precious resources. There are many parameters that help to save time by using this tool.

The availability of the high speed computers helps to search the required data within minutes and also enables to customize different kind of reports according to the needs of the customers.  The performance of the employees and his annual salary can be calculated by just selecting the time frame and entering in the employee identification number to get the necessary output. There are a number of instances when the allowances for the transport and the house rent is also included in to the total evaluation of the salary with minimum chance of errors.

The Payroll software is also useful in calculating the total and the sub totals in double quick time. The gratuity is also deducted at the time of the salary according to the rules of the government but is returned at a later date when the employee joins another company. Payroll software enables the top management to make decisions about the employees and categorize them into performing and non performing assets. It generates the report based on the achievement of the milestone by the employees. 

It makes the department to assess the capabilities of the employees on a realistic scale so that if he or she is lagging behind then a special training could be organized to hone his or her skills and improve the overall performance.  Some modern software also provides the option of content management system that helps the customer to have full control over the contents of the application. The application is equipped with an automatic backup that is activated if the data is corrupt or lost. It takes only few minutes to perform the operation. The various security rights are assigned to the different users according to the departments they are in.  The challan information about the taxes is available online that is filled virtually making the salary evaluation process a breeze. Apart from the above the provident funds are quantified according to the percentage of the salary and if it increases then the PF also shows an upward trend in absolute terms.

For more information on payroll software, visit our website.

Open Source Payroll Software

The trend of computerization and connection to the internet has become the benchmark of a successful company. In the times gone by calculating the tax and the other jobs proved to be financially draining because it needed specialized hands that called for expensive hiring on the part of the company leading to the steep hike in the price of the product. 

The open source Payroll Software was in fact introduced to precisely target this unfortunate situation. In few years time sit proved its worth because the companies were able to perform the complex tax calculations on their own without the need for outsourcing the task to some other companies. It had a major effect on the working but there were hiccups in the way since the software that was available from the companies required that the client or the customer was needed to pay a definitive amount upfront to renew the license of the software on yearly basis. The organizations who operated on shoe string budgets were not able to pay and it lead to their downfall because it took into account the proprietary issues as well.  The need of the hour was a free product that provided all the facilities and would only require onetime payment that would make the software a permanent property of the customers.

The open source system is cheap and can be used on different operating softwares. There are no issues if you are using them on   different file systems because they are perfectly compatible. In addition there are different features that make it almost equal to the licensed version. The most important quality is that it is an internet based application and not a stand alone. Therefore you do not need to purchase copyrights for multiple users as it happens in the software that is installed on the local area network. There is no nagging provision of the keys. In these type of software you just need to pay nominal charges that are defines as the expenses for using the virtual storage space of the web server. It can be accessed by the user from all over the world. It is possible for you to enter and create data with all the TDS and the provident fund information at one place and get the reports from the remote machine on your system.

The system requirement specification for the Payroll Software is explained in great detail ate the website. Most of the payroll software or systems have advanced graphics but it does not worry the user because the software is at the website and is not installed at his place so the system requirement takes a backset because any configuration that is able to run the browser helps you to accomplish the above task. The open source works like any other normal software that helps to process the salary checks and also includes a provision of change in the calculation whenever there is a change in the policy of the government.


It provides a read only access to the previous records that is the salary of the previous month because if it is allowed then people might just change the data leading to unscrupulous practices in the business.  The resynchronization of the data with the previous one is very crucial and helps in pointing out the lacuna in entering the data of the salary. It has the advanced feature of assigning the upper limit of the pay package for income tax processing.


For more information on payroll software, visit our web site: TaxPrintIndia.com

How Payroll Software helps save time & money?

The onset of different software applications in the market have led to the scramble among the companies to provide best of the products because of the competition that is eating into the profit margins of the company. In the modern times the inundation of the payroll software with different versions in the market has helped the customer to choose the one that suits its requirements. It is very important that you select the right kind of product matching your requirements. 

In the time of the manual book keeping the companies spend tremendous effort and time to maintain data. To search the requisite data one had to explore through the series of huge files to find the salary of a particular employee. The situation became too complex when the companies started hiring employees in large numbers because the current technological arrangement did not suit the requirements because it just got bigger. The manual maintenance of data was just not possible. The arrival of the personal computers actually helped in the rising popularity of the payroll maintenance.

 

The software even enables a person who is not an accountant to easily calculate the salary.  In the past the company had to hire a special finance professional to deal with the situation. It required time as well as the money.  The modern software or payroll software has a friendly user interface that encourages people to enter data in an efficient manner.  It can be used on multiple platforms and the user can start calculating the by creating a new company which would automatically design a ledger of the same in the background.  The local tax rates are according to the income tax slabs provided by the government.  If you want to create different heads for deduction you can follow the simple instructions provided by the software to do so. The deductions are automatically subtracted from the gross salary to calculate the net payment.

 

The payroll software also helps in printing the salary report and sometimes it is also involved in the printing of the pay checks that can be submitted in the bank for further payment. It is important that you keep a high quality printer in your premises to avail the facility because it may create a virtual copy and not a hard one in its absence. In order to efficiently manage the customized version you must organize the training for the human resource department so that it can be managed in a better way for accurate results. The speed at which batch processing can be performed on the online version is tremendous and would be a boon for organizations in the long run because it increases their profitability by lowering down the cost. 

The software does not include the provision of the entry of a single data under the two heads which is called double entry. It has become so sophisticated that by putting the data in one filed it automatically updates the other head resulting in correct result. It becomes extremely easy for the user because in the past he had to enter data in different places that required accounting knowledge. In a nutshell it has eliminated errors caused by human negligence.

Visit our website for more information on payroll software.

Advantages of Free Payroll Software

The online portals have announced their arrival in the virtual space with a bang which has resulted in the increase in the revenue for online business. The websites that are engaged in the internet business have experienced an exponential growth that has helped them to increase the headcount by several notches. Some big companies are employing professionals in large number that are scattered in different countries but work together to achieve a common goal that ensures the viability and the productivity of the company.

The Payroll Software has come to the rescue and has worked in its own way to enhance the competitiveness of the industry in the long term. The use of the software has ensured transparency in the administrative levels of the organization. The process of the integration of different departments has occurred with this tool because it acts as a bridge between the human resource and the accounting department.  The data is disseminated due to the central location of the software helping the employees to enter data and the dependence on one or two employees is reduced.

The free payroll system available on the internet has its own advantages because it can act as a training ground for the user who wants to buy the full version of the software. It is a stripped down version because all the facilities are not included but the user can create companies and the financial year as well. It also allows the creation of the user where the administrator can login and edit the rights of different employees located in multiple departments.

The Payroll Software allows you to maintain the salary under different heads and it also helps to find that how much income tax you need to pay depending upon the slab under which your salary falls.  The payroll compensation is provided in the free version and the criteria for benefits may vary from company to company and might also vary upon the rules and the regulations at that point of time.

When you are claiming reimbursement of the bill or a travel trip you would be astounded to find the starting balance that is appropriately added or deducted to get the closing index. The software i9s quipped with advanced search that allows the user to get the information that is filtered by different criteria.  The employee identification number for each employee is different therefore you need to mention the format of the number to the software and it would automatically generate the sequencing number for the professionals working in the company.

The multiple reports being created is so exhaustive and comprehensive that majority of the features are not needed by the company. Some of them include the annual income tax report the loan payment report and the salary statement. The free version can be downloaded on the computer and installed however it would be a trial version and the features could be used for a limited period after which you may have to go ahead and purchase the software. It must be advised that although it provides the facility of statutory reports you need to buy the full version payroll software in order to make your organization more efficient.

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FAQs on Payroll Software

The web based software is seen with great suspicion by majority of the users because they are not sure about its working in the real time scenario. The Standard Payroll software would first provide a demo version to the customers before proceeding ahead with the final purchase. There had been many instances in the past that has led to believe that one must careful evaluate its own requirements before embarking upon the search of that elusive payroll system. The accounting firms have studied the mid sized business in great detail and based on their common methodologies they have incorporated certain features into the software.

The first time user who has decided to use the web based version may have numerous question in his mind about the viability of the online tool. The above feedback became the set of FAQs for the visitors who come to the website of the companies that offer online financial product.

The most frequently asked question is definition of the employee insurance that appears in the final salary report. The government has made a rule in which if the employee is suffering from sickness or accident he gets an insurance cover that can prove to be a benefit for the citizen in time of any eventuality. Most of the new employees are not aware of the current income tax range so it can also be one of the questions on the website. The latest tax report says that from 0 to 150000 no income tax needs to be paid. Once it crosses the threshold you need to pay only 10% till it reaches the 300,000 mark and subsequently it becomes higher when you go up the ladder or when the salary increase. The visitors might also be interested as to what statutory facilities are mentioned in the payroll system or payroll software because the deductions are instrumental in calculating the correct salary. Therefore the inclusion of provident fund insurance and certificate of tax deducted at the source are very crucial to arrive at a conclusion.

Before the customer goes ahead with the decision to buy the Payroll software he might want to know about the special qualities of the software and how it would help in the smooth functioning of the human resource department. It is imperative for you to mention the leave and the attendance management module. The existence of the master and the transactional data cannot be overstated. The employee database belongs to the master category where as the salary process or the data becomes the transactional database.

Reporting is an integral process of the company and the users might want to know about the kind of information that is to be generated for the management to arrive at a particular decision. If the user is using an old payroll management system and he want to export the data to your system it is essential that your system must have the option of migration from one system because it would help in the easy usage and enable the customers to synchronize the data. There are many reports that might be generated month wise and it is one of the popular frequently asked questions. The printout of the salary statement can be mentioned in this regard. Apart from that the overtime bonus and the Bank statements of an employee are also released as an overall part of reporting.

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Advantages of using Automated Payroll Software

In the present era there has been a mad scramble among the companies to carve out a niche in the market because it has made the organizations lean and they have taken a series of steps to reduce the expenditure drastically. The behemoths resorted to a mass computerization of their departments to help reduce the flab and make the organization lean and mean.

The advancement in the technology led to the change in the hierarchical structure of the companies which became more lateral in the real sense that allowed the free and fast flow of information. It allowed the release of tremendous creative potential which in turn transformed the productivity. The payroll software is responsible for managing the complete records of the employees. An employee which is hired by the company is regarded as an object that has many attributes like the designation and the salary with the first and the last name. Once you enter the data it is regarded as a single record.

The automated software is used to perform the calculation of the income by showing the complete breakdown of different part that would help the customer to analyze it in a transparent manner and he or she knows exactly how much salary was allocated. The mathematical error is out of question but it is important that the data which is punched in must be correct. The automated payroll software has an attendance module that correctly evaluates as to how much salary is to be deducted on the basis of the number of days for which the employee was absent.

The leave policies are different so it offers to define the new sets of rules according to the requirement of the company. In the event of not taking the leave it can be accumulated and utilized in the later period of the month or the year provided it is under the jurisdiction of the company.

The payroll software also offers the option of cashing in on the bonus that is available and defines the policy regarding the issue of compulsory and the planned leave. If the employee resigns the leave and the other benefits are settled at a later date and the above provision is offered as a part of the application. It encompasses in itself a detailed explanation of the loan process and once the required information is loaded into the software it becomes easy to calculate loan installments according to the rate of the interest charged by the company or the bank.

In the event of the non existence of the employees the record is transferred into the archival data storage. The automatic application is network based and it provides for the simultaneous data entry from different terminals. It helps to increase the efficiency and also the speed because many users can punch in data at the same time. The issue of concurrency control is sorted in due time. If the employee is applying for compensation or reimbursement he can fill in the online form to get it automatically updated across all the channels.

For more information on payroll software, visit out website Tax Print