The level of technological advancement in Nigeria can not be underrated as everything keeps getting on top gear every now and then.
The fact that all the sectors, finance especially have witnessed a tremendous improvement among which is the invention of automated payroll system which makes the calculation of the wage a computer-based task.
Different HR software is now available to deliver both small and big tasks which would have been a hard nut for humans to crack.
However, before we move further, you might be wondering what an automated payroll system is all about, this article will give explicit details of everything it contains.
Let’s get started!
What is automated payroll?
Automated payroll is a devised system that makes wages and salary payments of your employees easy and concise.
The use of this system has saved a lot of companies the stress of calculating and processing the wages of hundreds of employees before payment, such as federal government, state including local tax system.
All it requires is a payroll manager whose work is to monitor the system and that’s all!
What are the benefits of having this HR software to reduce the stress involved in engagement between staff and the company’s management?
Here are the benefits of using an automated Payroll System:
• Payroll System gives accurate and concise attention to employee’s bio-data:
This system can be likened to a scanning machine that effortlessly scans every details of an employee from his name, employment date, family background, and everything that has to do with his work life.
This knowledge makes it easy to rectify say an issue occurred in his working place. The payroll also calculates and pays an employee’s tax accurately on his behalf.
• It serves as the company’s library:
The payroll portal is where all the company’s details are saved. From their policies, terms and conditions, do’s and don’ts, the number of contracts awarded and the successfully completed ones, both the employee and its employer.
In a company where there’s a healthcare allowance or any educational documents which will benefit the employees, everything is safely stored on the payroll.
• Presence of a more advanced payslip:
Gone are the days when payslips often probe arguments from the staff to the management due to inadequate records.
Everything has been made easy now as staff can easily send a quick mail to the financial board requesting the concise details of her wages, all through a well-documented payroll system.
• The calculation of various tax deductions:
One important aspect of a payroll system is the wages and salary deduction processing. This happens where the management has the right to their employee’s paychecks such as the federal income tax, medicals, security, as well as their state income tax.
The calculation and manual input of these can be a really tasking work for humans while at the same time a rigorous experience that’s prone to mistakes. However, with the payroll system, all the taxes will be calculated and deducted in no time without human stress.
Because the automated payroll has the taxes encoded in the system, it’s easy to calculate the withholding tax of an employee based on the withholding conditions data input.
• Fast and error-free time management:
In the time past when hourly workers get paid according to their hours of work, the mode of payment is through a time-keeping track which reveals their hours of work.
Errors were always found wanting due to the manual clock that’s used because the payroll has to be done through manual computing. With an automated payroll, there’s no room for avoidable mistakes as the process is devoid of human efforts.
• Helps with financial planning:
With an automated payroll account, each employee’s payment is made easy thus giving room for effective financial planning. There’s a zero rate of payslip lateness or error which further strengthens an employee’s trust in his employer.
Another good thing about this is the employee’s awareness of the exact time of the paycheck deposit. With this, it’s very unnecessary to visit banks or other check-cashing fees.
• Easy change-making decisions:
The initial procedure when making changes on payroll is the manual paper form, after which one has to wait for a long time for it to be returned.
The good news now is the easy and fast process it has become with automated payroll where the changes are made directly on the system. These changes can be made as many times as possible with direct access by the employee.
Here are some of the changes:
- Inclusion of new employee’s data
- Update on name changing, address, number of deductions, and tax status.
- Addition of bank accounts.
The numerous benefits endeared in the use of an automated payroll can not be overemphasized.
If you’re still with manual input, you can do well to try out the fast and easy automated system and watch the magic unfold.