Comprehensive and Effective Ways of Using a Payroll System


Nishit Jariwala

Senior editor

Parul Saxena

Chief editor

Last updated: March 11, 2021


HRMantra : No. 1 In Payroll Software

Payroll management is one of the most complicated and yet, highly critical HR processes. However, since most manual routine tasks are now being automated by payroll software and hardware solutions, payroll management has become more comfortable. Let’s discuss the steps you must take to implement a payroll system successfully. 

How Payroll Software Can Help You Manage Payroll Effectively

Payroll Management System, typically, can assist you with:

  • Making accurate calculations of the hours spent in the office by an employee
  • Calculating the amount of remuneration that each employee receives
  • Online leave management and tracking
  • Statutory compliance reports such as PF/ESI/TDS/PT
  • MIS reports and graphical dashboards
  • Managing expense and reimbursement claims

Payroll solutions like greytHR, automate payroll processing, improve operational efficiency, and increase employee satisfaction with quick and error-free payroll management.

Implementing a Payroll Management System Effectively

Let’s discuss some of the steps you must take for implementing a suitable payroll software solution for your organization:

1. Hold a kickoff meeting

The main goal of a kickoff meeting is to put your project in front of the important people within the organization and address any reservations. Invite your key stakeholders, vendors, and key users for the meeting. 

In this scenario, they could be the directors or the CEO of the company, the finance team, the HR team, and the IT team. Discuss the steps in which the payroll system has to be deployed and mention the key objectives of each step. Your aim in this step is to obtain full participation from your stakeholders.

2. Form a detailed action plan

The project plan you make should take into account the available resources and the system’s deployment method. Consult your team members on the appropriate timelines for deploying the various parts of the system across different departments. 

Decide on the specifics of the project, such as the start date, tasks, duration, and end dates. Assign tasks to each member of the team accordingly.

3. Reassess your current process

Re-evaluate your processes and make necessary changes. Question critical aspects of specific processes. Decide whether a duplicate set of data is essential or if manual calculation of certain data is vital for the process. 

This is a great time to understand which aspects of your payroll process need to be automated and which features are essential for your business in a payroll software solution.

4. Devise a training plan

The users of the payroll software will require training to use the software to its peak ability. Therefore, determine the areas in which each user will need training and provide the details to your payroll software provider to develop a schedule for the training post-implementation. 

5. Sample testing of the payroll system

Prepare a sample of test employees with adequate representation from your organization’s key demographics. For your sample population, ensure you include employees who represent all segments of your database. For example, include salaried employees, as well as hourly, union or commissioned employees, and having different benefit plans, age, gender, and marital status. 

Process the payroll system for this sample set of employees, compare the results, and verify the data. Make any adjustments to the system configuration as necessary.

6. Analyze your current data

How much data will you require for the successful conversion from your old system to your new one? Analyze this and contact your vendor to know what formats are suitable for the data conversion process. Ensure you back up data before it is migrated to the new payroll system. You might need it for other processes. This is also a great time to review all of your data for inaccuracies.

7. Formally record your new business processes

You will need to create a backup of all your new business processes. Therefore, you must make a formal report of all your new business processes. 

This will also serve as a revision for the new payroll software and will be helpful as a test script for the future. For example, it could be an updated leave workflow or a streamlined expense claims workflow, and so on.

8. Prepare for the go-live date

Once all the work is done, prepare for the go-live date. Ensure that all teams are on the same page and examine the tiniest details to avoid any surprises.

9. Schedule a follow-up meeting

Once everything is up and running, schedule a meeting with your team and the vendor to discuss any follow-up requirements. You can also discuss future phases that you plan to implement. Make a note of your successes in the process and review the problems that were faced. Highlight the learning points that will help with any future implementation projects.

If your organization needs a payroll system that is versatile and accurate, consider getting your hands on one of the best payroll and HR management software available today- greytHR and take your payroll management process to the next level.

Summing Up:

Gone are the days of tiresome and time-consuming riddled with errors, overworked payroll staff, and disgruntled employees. Implementing the best payroll software for your business, such as greytHR effectively, can revamp your existing payroll process and make it flawless, smooth, and hassle-free.

Blogger, entrepreneur, designer, photographer and a dreamer are just a few words to describe Nishit - an engineer by chance and an entrepreneur by choice. Entrepreneurship is not a career decision for him, it is a lifestyle choice he made when he was only 17.

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