Benefits of Automating Payroll Management


Three very critical functions performed by the HR operations team are payroll management, attendance monitoring and leave management. Earlier there was no option but to manually integrate these functions since the records were maintained through Manual (paper-based methods) and Excel Sheets.

However, the advent of Automated Payroll Management has changed that since all the functions get integrated with the use of on- site software/ Cloud Technology and Electronic Attendance Systems. These systems help build efficiency in the functioning of the HR department by streamlining various processes. They also play a pivotal role in the seamless integration of remote, multi- location and roving sales team into the system.

Cloud-based payroll management systems integrated with leave management systems have also become very reasonable to deploy and maintain (plans today start at as low as INR 40- 50 per employee per month).

Some companies specialize in catering to the requirements of large organizations with strengths exceeding 500 people, while there are others who provide these services to even startups with employee strength of 10+ people. This is a big boon for startups since they no longer need to dedicate a person for managing these functions. These systems also reduce the dependency on and bring down the costs of Chartered Accountants.

Duties With Regard to Payroll Management

The person responsible for payroll management must ensure that the organization complies with relevant laws of the state and the country. A few activities that form a vital part of the statutory compliance are listed right here.

A payroll expert must:

  • Make sure that all labor/employee related permissions and licenses are obtained
  • Ensure that all the employees are enrolled to varied schemes that are applicable to the organization
  • Handle calculation of payroll deduction as per pertinent laws
  • Make certain that relevant reports are submitted to the authorities as per a pre-defined schedule
  • Ensure applicable statutory forms & certificates are issued when an employee leaves the company
  • Assure common statutory requirements such as ESI, PF, Income tax, etc. are met and state-specific laws such as Shops and Establishments Act, Factories Act, etc. are complied with as well

Traditional Payroll Methodologies

Earlier, payroll was calculated manually and it left a lot of scope for errors. Then, with upcoming technology, people switched to more convenient methods of salary calculations such as MS Excel Payroll Calculator, Template, etc. Even the concept of outsourcing was born but most third parties used MS Excel only.

But now is the time for advanced technologies and most organizations prefer to buy on-premise payroll software, or they invest in online software. Both are good as they are quick, accurate and offer innumerable benefits. The key difference between the two is that a company has to manage an on-premise software by itself while the online software is managed by a vendor.

Benefits of Automating Payroll Management

  • Full compliance with laws related to PF, PT, ESI, TDS, etc. and Statutory reports like Form16, Form12B, Form24, etc. are pre-configured
  • Collection of data at source saves effort regarding collecting and manually entering data
  • MIS reports allow for reviewing and improving the process efficiencies
  • All payroll data is 100% accurate and consolidated so there’s no need to manage different data files
  • Employees get the power to access the loan details, leave policies, pay slips, YTD statements, etc.
  • Easy access to all compensation & benefits data at any time and any place
  • Comprehensive audit tools assure of authenticity of all the records
  • Provision to integrate with attendance management and leave management systems

How is Online Software for Automating Payroll Management Better Than On-Premise Payroll Software?

A few reasons why automating payroll management online by using reliable services is an awesome option as compared to the on-premise payroll are:

  • You don’t need to pay server costs, buy hardware infrastructure or pay additional maintenance fees
  • Hardware uptime is usually 99 percent and data will have multiple backups which prevent data loss
  • Payroll & leaves in-charge can access data and approve the leaves from home or while traveling
  • Free statutory upgrades, high-tech data security and a monthly subscription fee make things easier
  • Freedom to cancel the subscription anytime you wish and try & buy option gives you total control
  • Better service is constantly rendered as customer retention is the goal
  • Multi-location and roving teams can also get integrated into the system easily


All in all, it can be said that using online software automating payroll management is the need of the hour as it provides inestimable benefits and makes payroll management a stress-free task without much investment.

If you would like to get in touch with Payroll Automation Experts, please feel free to call Buildyourorg at +919971103225 or write to us at You may also visit our website and post your requirement there.

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