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Is payroll a part of HCM software?

  • Last Updated : February 2, 2024
  • 716 Views
  • 3 Min Read
How HCM Software simplifies payroll

Payroll plays a vital role in every organization. If you can't pay your employees, then they will stop showing up for work. But it's not just about delivering the paycheck; it's also about whether pay is consistent, fair, and accurate. When payroll is processed on time without any errors, employees will come to trust the way other areas of your business are managed more, and they'll work harder to see that organizational goals are met.

It is a foundational building block for a strong people management strategy, and it definitely should not be sidelined in the HR technology you implement. Payroll features are very much a part of the core HR functions of an HCM software system. In this article, we explain what a payroll management system in your HCM software solution can do for your organization:

  • Fetch data for payroll processing

Accurate information and seamless data importing are key for an optimized payroll system. HCM software is often used to track each employee's attendance and time off, so all the data you need will be readily available within the system. The payroll management system fetches the attendance, time off, and timesheet data required for payroll calculation automatically. Because there is no manual work involved, there is practically no room for payroll inaccuracies or delays. Once deduction, reimbursement, and other tax details are fed into the system, payroll can be processed within seconds.

  • Provide pay transparency

The payroll management system that comes as part of HCM software provides visibility into the payroll process based on the permission each user has. For instance, employees can access all the necessary information regarding their salary. From salary breakdowns and reimbursements to pay revisions and other tax information, all the data that your employees require is just a tap away. In addition to this, they can use the self-service portal to claim reimbursements, submit proof of investments, download payslips, and more. For enterprises with dedicated departments, employees from the HR and finance teams can also access data based on their roles.

If your organization has a pay transparency policy that gives employees insight into salary ranges at your workplace, a robust payroll management system will allow you to provide this visibility without compromising the privacy of individual employees.

  • Consolidate your HR database

Speaking of HR data, maintaining the integrity of employee data at your organization is much easier with a payroll management system. With your HCM software interface, all payroll data will be consolidated in a single, centralized location alongside other employee information. This keeps it safer, especially since you will not have to waste time transferring payroll data to another database manually. Information about salaries, promotions, bonuses, benefits, and more will be secured and accessible only to those with the appropriate permissions. Also, a payroll management system allows you to generate reports with this data instantly, making it easier to see how compensation trends are interacting with your other HR activities.

  • Simplifies payroll reporting

As an organization, you are expected to produce certain payroll reports based on the regional and national labor laws governing the location from which your company operates. You'll also be required to keep tabs on the complete payroll process because payroll is by far the biggest expense incurred by an organization, which means that it is also one of the most scrutinized. With the payroll management system, payroll reports can be generated in no time, and they will always be updated to the most current numbers. This makes audits less challenging and ensures your business upholds compliance standards at all times.

Final thoughts

Payroll is one of the most important functions that an HR department can manage. Having a payroll management system that is integrated with HCM software can make things so much easier for both your HR and finance departments, saving them from repetitive work and stressful audit preparations.

Zoho People, our HCM software, is integrated with Zoho Payroll in order to automate your entire payroll process. It can handle compliance automatically, and field-level access permissions allow you to give all employees access to the exact information they need without compromising security or privacy. Learn more about the Zoho People and Zoho Payroll integration.

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  • tarika
    Tarika

    Content Specialist at Zoho People

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