5 Major Payroll Issues resolved with Payroll Software

Payroll management is one of the most crucial aspects of the HR department as it deals with the employees’ payroll. Additionally, it is a process that must be repeated each salary cycle. However, even in 2022, it is still a demanding task for the HR department as it requires them to painfully manage every aspect to process and disburse the payroll.

Due to human errors and limited data management capabilities of the manual methods, payroll becomes a hectic task for HR. It is virtually impossible to ensure a hundred per cent accuracy due to the complicated nature of payroll management.

This is where payroll software comes into the picture. It would not only help in making the payroll management process efficient but also make it accurate and error-free. We shall take a closer look at five of the major payroll issues that are resolved with the help of payroll software.

Traditional manual employee database management methods are error-prone due to the manual methods involved in storing the data and editing it. HRs have been using spreadsheets to accomplish this task for a long time. However, limited data validation and insufficient security of workbooks mean that HRs have to make last-minute corrections almost every salary cycle.

On the other hand, with the help of robust payroll software, there is no risk of erroneous data entries or data integrity issues. Since the software itself calculates the payroll based on the attendance data, it becomes much easier to maintain the records and process the payroll on time.
This is one of the biggest reasons why all of the best payroll companies use some sort of software these days to process data.

Additionally, with the advent of modern cloud-based payroll management systems, it is possible to access this data from anywhere anytime. This increases the overall HR efficiency, thereby freeing them from repeated calculations every salary cycle. The data also remains much more secure on the cloud rather than spreadsheets.

2. Error-free Payroll Processing

Another major benefit of having payroll software is that payroll processing becomes accurate and error-free. Due to the automated nature of these systems, HRs need not spend a lot of time cross-verifying the input data. Instead, that same time can be utilized more productively to develop employee engagement strategies.

HRs need to check multiple records such as employee loans, reimbursements, insurance, benefits, leaves, overtime and attendance data, taxes, and deductions to arrive at the final payroll for each employee of the company. Hence, it used to take several days with traditional methods to process the overall employee payroll.

Things have changed a lot with the newer payroll software which can calculate and process the payroll within a few clicks thereby easing the efforts required in payroll management. Additionally, companies are also taking the help of biometric attendance systems to ensure that the attendance data is also captured automatically to ensure zero errors in it.

3. Streamlined Administration

Since payroll management is a vital part of the company, most of these companies prefer doing it in-house and the responsibility falls on the HR department. However, it requires the help of multiple other departments such as the attendance and leave management team, accounts department, etc.

The inclusion of all of these departments in the employee payroll process increases the paperwork required and hence, adds to the administrative HR workload. On the other hand, with the help of a payroll management system, one can cut down on these clerical tasks and thereby free HR for other important duties.

As a result, instead of being overwhelmed with the administrative HR duties, they would be able to do other productive work such as strategizing employee engagement, improving employer branding, streamlining the company’s talent management and other innovative

4. Being Statutory Compliant

As we are aware, there are multiple labour laws throughout the world established to protect employee rights. Every company needs to abide by these laws irrespective of its size. The laws related to employee salary and payroll are especially important as they deal with the financial aspects of employment.

The HR department needs to provide the necessary financial benefits prescribed by law while also making statutory deductions such as TDS, professional tax, income tax, etc. Since all of these benefits and deductions are done as per the existing laws, it needs to be recorded accurately and provided to the employees in the form of payslips.

Having payroll software immensely helps the HR team in performing all of these activities. While HR was required to remain updated with the latest regulations in manual payroll processing, they can leave it to the software vendor of the payroll software. This again benefits the overall employee morale as they receive their correct salaries on time.

5. Accurate Payment Disbursal

The legacy manual payroll processing methods used to days and weeks in the case of large companies due to the increasing variety of employees and their varied designations and salary structures. Once the correct payroll is calculated, distributing the same on time was another challenge that HR needed to tackle every salary cycle.

Ensuring that every employee receives the correct salary on the pre-defined date is imperative to maintain their loyalty and trust towards their company. Hence, even after the development of HR and payroll software, many companies preferred using their legacy manual methods to process the employee payroll.

Conversely, using modern payroll and HR software, the entire payment disbursal can be automated. Modern payroll systems can generate the salary slips and process salaries accurately and send the calculated sheets to the bank directly. The advanced ones can even request the company’s bank to release the payment to ensure that the employees receive their salaries on time.


As we have seen until now, payroll software is a necessity for modern HR. It not only helps HR easily carry out their payment-related tasks but also helps them in ensuring that the payments are accurate and released on time. Write for us software provides the good authority in the market, The five issues that we discussed in this article plague all companies irrespective of their size and having robust payroll software is the solution to all of these issues.

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