The Human Resources Management System (HRMS) have advanced a lot in recent years. With the advancement of mobile technology and the internet, modern HRMS have transitioned to the cloud-based architecture of the software delivery model. The latest systems are even taking the help of artificial intelligence, machine learning and even predictive algorithms to help HR manage the most vital part of any company – its employees.
Hence, let us take a look at the top seven must-have features of any cloud-based payroll software:
Software integration refers to the concept of bringing together different software so that they can work as a single system. A good cloud-based payroll system would be able to integrate easily with the ERP systems and import and parse this data to calculate the employee payroll. It should also be able to fetch the data from the central accounting software to understand the previous payroll cycle and calculate the various parameters.
Data validation is a feature of payroll software that verifies the input data for any inaccuracies by cross-referencing it automatically. It is crucial to include multiple checks while calculating the payroll to understand the different policies applicable to the employee and their salaries. Similarly, it helps the software accurately calculate the different statutory deductions as well as add the various bonuses to arrive at the final net salary.
Once the salary is calculated, the next step is to distribute the net pay efficiently. However, there are several protocols to follow in to ensure that the money is securely transferred to the respective bank accounts. To automate the salary distribution, the payroll software would have to interface with the banking systems, while also making sure that the amount is accurate. These tasks can be easily undertaken with cloud-based payroll system.
Once the payslips are generated, they should be automatically sent to the respective employees. With the help of a cloud-based payroll system, this process can be automated even if the employee has provided their email ID for the receipt of their payslips. Moreover, as the system is automated, the payslips would be sent on time without any delay.
Once the salary pay-out is completed and the payslips are distributed, the remaining final step is to file the statutory reports and make the necessary payments to the government within the prescribed timeline. This task can also be fully automated with the help of a cloud-based payroll system as this system should be able to link up with the government systems and make the necessary payments and file the tax returns as and when required.
MIS reports are very important for any company and a good payroll system will be able to understand the data and create interactive reports to help the management understand the current status of the company. However, with the help of a cloud-based system, an AI can analyse these reports and provide recommendations for improving the efficiency of the organization too.
Employee self-service portals have been an integral part of payroll management systems for a long time now. With the deployment of cloud-based payroll software, you will be able to make it interactive with the application of AI-based HR chatbots and meaningful graphical user interfaces. The chatbot will be able to help the employees find whatever they are looking for in the system, while the graphs will help in easy data visualization.
In conclusion, we can decipher that a cloud-based payroll management system not only helps in making the payroll process more efficient but also improves the overall HR department. It helps in keeping the employees engaged while also being highly efficient in processing and disbursal of payroll. With the constant advancements in payroll automation and implementation of AI in payroll systems, it is only going to improve further and the future is going to be very bright for Human Resources, which will directly improve the employment industry as a whole.