Every employee waits for their paycheck at the end of the month. The process of preparing their salary can be a tedious process. Payroll can be more challenging to handle when the company is growing and accommodates more and more employees.
There are ways, however, to effectively manage the company payroll. Many of today’s organisations have started using payroll software systems to make accounting for employees’ salaries more accurately. With a payroll software system in place, employees get their salaries without delay or computation errors.
Features of a payroll software system
A payroll software system in Singapore has various functions. Back when they were first developed, their main function was to keep records of payroll for documentation and auditing. Additional features were later included, such as calculation of wages and deductions, and linking to bank accounts for automated deposits.
Among the most common features of payroll software systems are:
- Documenting payroll entries – payroll begins by enlisting employee records. These include their name, salary grade, deductions, wage computation, and schedule of payment release. Having these on record is very important because it helps the company track its expenses per employee. Payroll records are also brought out and examined during internal and external audits, to ensure that the company is paying its employees and complying with tax regulations properly and regularly.
- Input of variable data – while employees may be in the same salary grade, the pay they receive may differ due to deductions, leave credits, tax category changes, etc. Using a payroll software accommodates these changes to be made, without distorting the manner of computing the employee’s salary.
- Implementing government policies on employee salaries – employees are required to pay taxes, and these are deducted from their gross salary. Companies who do not use automated software compute taxes and other deductions manually, so the results leave room for error.
Computation errors can be avoided with a payroll software system in use. The person in charge of preparing salaries can then input the necessary tax formulas applicable to each employee. This way, everyone in the company not only gets their salaries, but also pays their taxes without the unwanted hassle.
- Direct deposit -There are payroll software systems that can also be linked to bank accounts for direct deposit. This feature is common in systems designed for big businesses, such as companies with more than 50 employees.
- The direct deposit helps speed up the payroll process. Employees receive their salaries in their bank account instead of falling in line at the HR office during payday.
- Compensation administration – payroll software systems can also be used to account non-traditional methods of pay. There are instances when compensation is computed not based on hourly wage, but on a fixed rate, per-project basis, and these should also be accounted for. Compensation management is likewise made easier using a software system, since it can also compute bonuses, adjustments, changes in minimum wage, cost of living, etc.
- Self-service features – payroll software in Singapore are also equipped with self-service features. Depending on the level of access, employees can check their respective payroll accounts, such as logged hours during a particular cut-off period, salary deductions, available leave credits, and paycheck updates. They can also file disputes for spotted errors on salary computations, or access payroll forms on their own.