How Payroll Software is Answer to Your HR Challenges

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Payroll is a crucial factor for any organization. It’s essential to maintain employee morale and trust towards the company. The task of payroll processing has many elements and requires complicated calculations. 

Many factors, such as benefits, deductions, compliance and attendance, have to be done right to get the correct payroll. HR has to deal with a lot of data and calculations to ensure accurate salaries for employees. Doing this process manually takes multiple days and yet involves the possibility of errors.

HR regularly face multiple challenges related to the payroll that affects the organization’s productivity. In this blog, we will discuss how payroll software can help to resolve these HR challenges. 


As mentioned above, payroll is an essential process in the company as that is the basic compensation for an employee’s effort. Employees’ salary goes through many deductions, allowances and various benefits added to it. That processing needs different kinds of data and calculations to be done accurately.

If employees do payroll manually, there is the possibility of human errors as the same data has to be processed multiple times. Data entry work is always prone to mistakes. HR doesn’t have to worry about errors if the company uses payroll software. HR can be assured that calculations are done correctly, and as data is fetched directly from the systems such as attendance management, it completely eliminates the possibility of errors are often occur during the data entry work and ensures correct payroll to employees.


Payroll is one of the most time-consuming processes for the HR department. As stated above, it involves complicated calculations, and compliance can make it even more challenging. The payroll in the company has to be aligned with many government rules and regulations that govern different aspects of the payroll.

Failure to make mandatory deductions such as provident fund contributions or income taxes can attract penalties for the company. Payroll software automates processes to follow compliance, so HR doesn’t have to worry about the same.

Many organizations now prefer to use cloud-based HR software that can automate the payroll along with compliance but also keep up with recent changes in regulations. Most cloud-based payroll software receives regular updates, and any changes in government regulations are reflected in such updates. That way, HR can ensure automated compliance that will always comply with policies and keep businesses out of trouble. 

Attendance and Timekeeping 

Tracking accurate attendance and the time of the employee is crucial for the payroll. If HR has to do the attendance record manually or with the help of an excel sheet, it remains prone to errors. Such manually recorded data is easy to be tampered with, and there is always a possibility of a loss of data or theft.

Attendance is a repetitive process and can be easily automated with attendance management software. When the timekeeping is done automatically, it provides the correct data. The payroll software can be easily integrated with any attendance management software and avoid duplication as well as data entry errors.

The accuracy of the timekeeping is important for the calculations of overtime pay as well as for those employees who work as freelancers. The payroll software will always get the correct data from the attendance management system and give employees the right salaries. That establishes better trust among employees for the company, and HR do not have to worry about employee doubt about the calculation of their pay. 

Managing Payroll Data

A payroll management system has a huge amount of data that need to be processed for the payroll. All this data can be highly confidential as it includes the personal and financial information of the employees. It’s company’s responsibility to maintain the necessary privacy of its workforce. Once there is a loss or breach of data company has to invest a heavy amount of time and money in investigating or retrieving the data.

The payroll management software ensures data security for all the information in the system with data encryption. The software allows HR to give limited access to various employees according to their job needs, so the data remains in safe hands. The system also notifies the concerned department about any attempted breach of data so they can take necessary steps before data theft can take palace.


The human resource department’s productive time is invested in payroll processing-related tasks. That leaves them with little time for strategic work and makes them appear like the admin department.

When done manually, the responsibilities of HR do not end just with disbursing the salaries. Often there are mistakes in data entry or at some stage of calculations, so they have to spend additional time rectifying their mistakes. The corrections again take time and may cause employee rage as they may face some penalties due to missing their monthly bills because of incorrect payments. 

Payroll software automates all the calculations and compliance for the payroll with single-click payroll that enables HR to save a massive amount of time. There are lesser occasions when corrections are needed. That increases the efficiency of the HR department as they can take more initiative for employee well-being and productivity of the organization. 

This way, payroll software can help to establish the HR department as an efficient and strategic department.


Payroll is unavoidable in every company as employees have to be compensated for their effort to keep their morale up. HR has to ensure correct payroll with accurate data attendance and timekeeping. They also have to be mindful of the compliance and changes in the regulation. The Payroll software also provides data security and saves a lot of time. That helps HR get rid of manual payroll calculations and corrections and also helps increase employee satisfaction. 

Guest article written by: Shital is a writer with numerous years of experience in content for IT companies. Her primary interest lies in creating well-researched articles about how software solutions improve an employee’s productivity and help businesses grow. In her free time, she likes reading books. Currently, she is working with Pocket HRMS, an HRMS Software provider.

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