HRMS Software

Benefits of Managing an Online Payroll System

The world is becoming increasingly digital and small businesses are not far behind. Many SMEs conduct their payroll processes in-house with a small team committed to the task. It is one of the most critical tasks for an organization and must be managed carefully to avoid compliance issues and any inadvertent errors. Every aspect of payroll processing must be attentively managed to maintain employee morale and enhance their confidence in the organization. As such, managing the entire process manually can be highly risky, especially in a remote setup, where employees are working out of the office. 

In this scenario, adopting an online payroll system makes sense as it minimizes errors and automates key tasks that are performed manually. Managing payroll online with service providers holds a tremendous advantage over completing the process in-house manually. 

If you’re wondering if getting an online payroll system is worth the investment, read to know the benefits it poses to your business:

  1. Increased efficiency

Manual tasks are repetitive and sap out the energy of HR professionals, leading them to put in extra hours at work. It typically requires the involvement of more than one person to calculate the time and attendance of each employee, calculate tax and benefits, and file for compliances. This process has a small window to be completed and must be repeated every pay cycle. Online services complete these tasks automatically and all it requires is a few clicks and a lot less time. This increases the efficiency of the HR department and makes them more self-reliant.

  1. Aids remote payroll calculations

An online payroll management system automates key data required for payroll calculation seamlessly, and on time, notwithstanding the location of your employees. The payroll system is integrated with the HR software, making it easier to draw data from different modules of time and attendance, leave management, and benefits, to complete error-free processing of payroll. The online system improves collaboration between the HR, finance, and payroll department, making teamwork much easier. It improves visibility and maintains accountability for each step of the process.

  1. Decreases room for error

An automated payroll system mitigates errors and reduces the likelihood of making costly mistakes. Continuous manual work invites errors that can lead to significant losses for the company. It can lead to reputational damage and can also invite hefty penalties in extreme cases. Streamlining the payroll system to coordinate with other modules creates cohesiveness and reduces the chance of error. An online payroll system completes the process in a few clicks, making the entire process quick and error-free.

  1. Has built-in modules

Every online payroll system has a few in-built features and modules that make the task easier to accomplish. These online features make payroll processing a breeze for companies. Through the online payroll systems, organizations can send employees’ salaries directly to their bank account, simplify tax calculations, and automate filing. This can be customized further to meet the specific requirements of each company and ease their processes. You can define your organization’s pay schedule, pre-define reimbursements, and deductions, select and customize a specific payslip template, and control user access for specific parts.

  1. Eases employee access to data

The lack of a centralized online mechanism prompts employees to consult the HR department for every small query. The online portal enables employees to view their payslips, see historical data, and perform a host of other functions. Since everything is automated, there is seldom any room for errors, and employees have no provision for complaining. This improves trust and increases employee efficiency in the long run. Making them self-reliant to access key data reduces the undue burden on the HR employees, making the entire organization happy.

  1. Improves data security

Payroll data is sensitive and consists of confidential information that can be disastrous in the wrong hands. An online system ensures the highest level of security to your company data. The lack of a proper mechanism exposes your data to significant online threats. The online system has adequate measures in place to protect crucial data from cyber threats. Organizations can also pre-determine the access level of each employee accessing this information to tighten security and reduce the chance of data breaches. 

  1. Simplifies the documentation process

Documentation of payroll records along with historical data is important for every organization. It comes in handy when information is suddenly sought like during audits or when meeting compliances. Since the data is organized online in a centralized system, it can be accessed from anywhere, anytime. Employees looking for specific information can also log in and access data without bothering HR. All the information can be stored online and accessed easily, whenever needed. 

Managing payroll operations sufficiently can be cumbersome in the absence of a centralized online system. An online system saves time, improves efficiency, and makes organizations competitive and profitable. It frees up HR time that is otherwise spent on managing mundane manual tasks. With a dedicated online system, there are zero errors and employees will always be paid correctly, and on time. All of these factors are essential for any company to adopt an online payroll system for their business.

Paylite® Human Resource Management Software is an end-to-end HRMS system that meets the ever-growing needs of modern-day workplaces. It makes your HR process streamlined, smart, and swift, replacing the age-old legacy systems with system-driven workflows. It offers world-class security features that keep your valuable data safe and secured at all times. Paylite® uses state-of-the-art technology from Microsoft to make your organization run smoothly and save valuable resources. 

You can book a free demo of Paylite HRMS to ascertain its viability for your organization from