9 Aug, 2023
In the ever-evolving world of business, staying competitive means being agile and innovative. One area where businesses have sought efficiency and accuracy is payroll management. As companies grow and the complexity of payroll tasks increases, the demand for accurate and time-efficient solutions has grown exponentially.
In this blog post, we embark on a curious journey into the realm of payroll automation, exploring its definition, the manifold benefits it brings, how to implement it, the costs involved, and real-life case studies that showcase its transformative power.
Imagine a process that automates and streamlines the calculation of employee salaries, tax deductions, statutory benefits, and other payroll-related tasks with minimal human intervention.
That's the essence of payroll automation. It leverages cutting-edge software and technology to handle the intricate and repetitive aspects of payroll, freeing up HR and finance teams to focus on strategic initiatives.
With payroll automation, companies can bid farewell to laborious manual data entry, report generation, physical investment declarations, and error-prone compliance calculations. From small startups to large enterprises, the implementation of payroll automation can prove to be a game-changer, enabling businesses to adapt to the ever-changing landscape of workforce management.
Manual payroll processes are susceptible to errors, which can lead to compliance issues and disgruntled employees. Payroll automation reduces the risk of errors, ensuring accurate calculations and adherence to legal regulations. ….
Automating payroll tasks like adding attendance reports, payroll input computation, and compliance report creation can significantly reduce the time and effort spent on manual processing. This leads to cost savings by streamlining operations and minimizing the need for a large workforce dedicated to payroll.
Employee benefit plans and salary personalisation have become must-haves to retain employees. Payroll automation makes it possible for the HR team to offer the benefits with ease.
Payroll data is highly sensitive and must be safeguarded. Payroll automation systems offer robust security measures, protecting employee information from unauthorized access and potential data breaches. The access management module helps define the roles of the users hence limiting the risk of security breaches.
Advanced payroll automation platforms provide real-time access to data and analytics, empowering businesses to make data-driven decisions and gain insights into their workforce costs.
Efficient and accurate payroll processing leads to timely payments and ensures that employees receive the correct compensation, fostering trust and satisfaction within the workforce. With payroll automation tools like Mool, each and every employee gets their own self-service logins where they can not only access their payslips and form 16, but also declare their investments, request reimbursements, apply for leave, and personalize their salary structure based on their requirements. Check if your current salary structure is optimized.
Payroll automation can integrate seamlessly with other HR and accounting software, creating a unified system that streamlines overall business processes.
Tax computation in an organization involves multiple steps that start with employees’ investment declaration and end with tax filing. During this process, there are multiple stakeholders involved and without a payroll automation tool, the task can consume a majority of the bandwidth of the HR and finance teams.
While the thought of implementing payroll automation may seem overwhelming, a systematic approach can ease the transition. Here's a step-by-step guide to implementing payroll automation in your organization:
The cost of payroll automation can vary depending on the size of the organization, the complexity of the payroll process, and the chosen software. Some of the primary cost factors include:
Software Subscription: Payroll automation software is typically offered on a subscription basis, with costs varying based on the features and level of support provided.
Implementation and Integration: Initial setup and integration with existing systems may involve one-time costs.
Training and Support: Employee training and ongoing support may incur additional expenses.
Maintenance and Updates: Regular maintenance and updates to the software may be necessary to ensure optimal performance and compliance.
It's essential to consider these costs in the context of the long-term benefits and savings that payroll automation can bring to your organization. Besides, if the software is able to bring in additional beneficial features to help retain your employees, compliance audits, etc then the effective cost to the company becomes negligible.
Let's delve into real-world examples of companies that have embraced Mool’s payroll automation and reaped significant rewards:
Parag Pranjape, the founder of Think Group, used to manage the payroll for his employees on his own manually in excel sheets as the team was small. The high redundancy involved in payroll processing and statutory compliances would take up a significant portion of his time each month. He realized the need to upgrade and automate their existing payroll setup so that he could focus on what was important.
“A lot of our payroll related activity which we used to do manually on spreadsheets was automated by Mool Vetan. Their end-to-end automations saved us from so much headache in this last quarter.”
Founder Director, Think Consultants
Arrivae, a home furnishing company with 500+ employees, needed to automate their payroll and compliance processes to better manage their office and field employee compensations.
The client was onboarded on Mool Vetan in less than a month. The system optimized taxes for all employees based on their personal preferences and enabled them to achieve up to 10% increase in their in-hand monthly compensation without any additional cost to the company.
Mool’s automated compliance calculations helped the company deal with the complexities of compliance (labor laws and taxes), especially for their blue-collared (field) employees. Our two-click payroll processing system will save more than 5 man-days per month in payroll processing.
Zakglobal, a facility management company with more than 1000 blue-collar employees operating in 12 different states of India, needed to automate their payroll and compliance computations.
With the frequent change in labor laws and tax laws made their life difficult to keep up with the latest compliances. Besides this, creating compliance reports like Form T, Form D, Muster Roll, etc for all the office locations in their respective state’s format was consuming their payroll team’s bandwidth.
After implementing Mool Vetan, all the mundane jobs were automated and the payroll processing time was drastically reduced from 10 days to just 3 days at the same time, the computation happened with the latest labor and tax laws.
The compliance reports were generated in PDF and Excel which were directly uploaded to the portal of respective states and compliances. Recently Mool integrated the Minimum Wage Act module which further helped Zakglobal create complaint salary structures for their employees.
Payroll automation has revealed its immense potential to revolutionize the way businesses manage their workforce. From accuracy and compliance to time and cost savings, the benefits of payroll automation are undeniable.
By following a systematic implementation process and considering the long-term gains, organizations can pave the way for seamless payroll management and empower their HR and finance teams to focus on strategic initiatives that drive business growth.
With payroll automation, companies can bid farewell to laborious manual data entry, report generation, physical investment declarations, and error-prone compliance calculations.