Payroll processing is one of the most crucial operations in any business. Each and every business may carry out the process in a different way, but the goal is essentially the same – effective payroll processing.
But how sure are you that the way payroll is processed in your business is competent enough?
Let’s face it. The way payroll is processed in most of the companies across India is mostly fair to middling.
For that very reason, we wanted to call out what could possibly be curbing the effectiveness of your payroll process, so you can take point on making your system better.
#1 To err is human
Payroll processing is long, tedious, and very time consuming. And, most businesses that deal with in-house payouts do it manually.
When manually calculated, there’s a great margin for human error while working with numbers around salary structure, working hours, overtime, vacation days, etc. There’s also a great deal of never-ending administrative and tax-related responsibilities.
#2 Regulations and compliance
Very recently, the Finance Ministry of India introduced the dual tax regime, bringing significant changes to the way taxes are calculated from 2020-21.
While we already deal with complicated tax law, we also have to ensure that our payroll process is compliant with the changing requirements that come along with new regulations. This calls for a payroll system that can adapt and scale to the changes that come along the way.
[ Recommended: Upgrade to a Dual Tax Regime Compliant Payroll Software ]
#3 Sticky spreadsheet situations
When you bring your payroll process into play with spreadsheets, you’re very likely to jumble up while collecting investment declarations and proof from your employees. Next, how would you maintain data when you have a new hire? Or, how would you update your “system” when your employee gives you a new set of documents?
Further, leaves, overtime submissions, reimbursements, different salary structures, and more are to be considered. This means exhaustive manual hours. This will remarkably bring down your employee productivity.
#4 Time consuming
Traditional payroll processing is very heavy on manual hours. Like we said before, the payroll personnel has to consider many different parameters to make calculations.
Next, traditional systems are not built to handle the needs of today. For use cases like instant advance salary payouts and instant reimbursements, you may be required to set up a whole other process. Managing requirements like these manually is very time consuming, not to mention, inefficient.
#5 Security concerns
Data security can be a costly affair for many businesses. But that does not mean you can take it for granted. Many businesses use old and outdated data security systems, resulting in their payroll system to be vulnerable to attacks.
Sometimes, you don’t even have to go as far as data security. An innocent lack of oversight can be the most brutal hit to your employee data. Someone always needs to monitor the entire system, while making sure no data falls into the wrong hands.
#6 Low flexibility
Several times, your employees will want to change their bank account details or update their information. Traditional payroll processing systems do not have a way of allowing your employees to take action on their own without having to involve someone from the payroll department.
It becomes extraneous for your employees to have someone else update the system every time there needs to be, when they might as well do it themselves.
#7 Difficult to adapt
Businesses refuse to transition into an automated payroll processing system just because they are used to carrying out payroll on spreadsheets or using other manual ways.
Or, they might stick to their usual ways because they might think a payroll processing software is expensive or unnecessary, when In fact, a payroll software would reduce their manual hours and dial down cost, bringing in more accuracy and effectiveness.
The antidote – Opfin
An effective payroll software will help your business overcome all the problems we discussed above, so you can have a seamless and effective payroll process in place.
We, at Opfin, have decoded what it means to have an effective payroll system. Here’s how.
There are two types of payroll software you can find in the market. SaaS products help with salary disbursal and compliance fees like PF, PT, TDS, and more. And, payroll agencies are the ones where you can outsource payroll and not have anything to worry about.
In both cases, you have to know that your entire payroll is not automated and you still have to oversee the process and the disbursal, while making sure compliance is upheld. Plus, you still need to approve the calculations so that they proceed to pay your compliance.
How Opfin works
Opfin works on a Direct Deposit model in which Opfin processes payroll, as long as you maintain your balance. Think of it like a wallet you deposit your money into using which your payroll is carried out.
It’s designed to be highly intuitive and easy to use, which takes away all the redundant steps.
The upside is, you don’t have to worry about TDS, PF, ESI, and professional taxes, ever again. Plus, your employees are always paid on time! Next, you can pay your contractors and pay TDS automatically. Opfin deals with quarterly filings, form 16s, and 24Q.
Opfin gives more power to your employees by allowing them to claim their reimbursements and tax exemptions on their dashboard, based on which their monthly payroll is adjusted automatically.
And, Opfin is dual tax regime compliant!
In a nutshell
Behind the success of any organisation are its people – and those who manage them. Efficient payroll process can make or break an organisation. In an era of automation and software-based management, don’t struggle with payroll processing by employing medieval methods.