How Payroll Management Software reduced the cost of Manpower?

In this age of advanced technology many small businesses have opened day to day basis. Business owner well aware with technology, they know how to use this technology effectively to maximize the growth of the business. They also know that using this technology they can also reduced their manpower cost through software solutions. In this phase we start with payroll management software. But firstly we have to know what is Payroll Management software  and how its work.

In a company, payroll management software is the sum of all financialsrecord of salaries for an employee, bonuses, wages, net pay and deductions. Payroll Software consists of count of salaries & tax deductions of the employees, organizer the retirement benefits and  immediate delivery to salaries to employees. Payroll software can also be called as an account activities which initiates the salary regime of employees in the organization.

Payroll management software can divided into two parts. i.e. Payroll Accounting and Payroll Administration.

Payroll Accounting- Payroll accounting inset enumerations of employees’ salaries, net pay and tax deductions. Payroll Accounting also initiates the activities such as preparation of tax returns, maintenance the payroll records, etc.

Payroll Administration- Payroll Administration involves the managerial activities such as maintenance employees’ records, referring job laws. Here, the HR comes into picture which maintains the day to day record if employees attendance. In payroll management database of employees is maintained. The employee’s details such as name, employee ID, basic salary, day to day attendance reports etc are recorded. Gross Salary is calculated after adding the allowances and incentives to the basic salary of the employee. Net salary is calculated by deducting the tax and other calculated deductions.

On the behalf of this we can say that using payroll management we can reduced 20% cost of the business.