The Ultimate Guide on Key Payroll Modules to boost your HR Management

While payroll management sounds to be a simple and productive cycle, this isn't always the case. As it may be possible to manage the same manually when a company is in its early stages and working well with a small group of employees.

But when more employees are recruited and the company grows, the manual processes for collecting, tracking, and reporting attendance and time can soon become overwhelming. Then, it becomes a prime responsibility of the HR management to ensure that everyone gets paid correctly and on time, as even a single blunder indeed can jeopardize workers' faith and the company’s reputation.

As a result, managing payroll is one of the key tasks of HR Management that must be correctly and cautiously done. However, determining exactly what to modify or do can sometimes be difficult because introducing and trying out random changes or software isn't the answer.

To make your payroll framework truly engaging, you should work on addressing your general processes, the technology you are using, and the mandated practices that must be followed.

For doing so, it becomes imperative to be well versed with the key payroll modules that can ultimately help to boost your HR management. In this blog, you will learn about the top key payroll modules so that you can accelerate your HR management.

Boost Your HR Management With Key Payroll Modules

Payroll may be difficult to manage because of the numerous altering elements, that’s why it is critical to have a better understanding of the primary payroll modules to ensure the accuracy of these computations. The key payroll modules are as followed:

1. Calculation Module: This module is basically used to run the calculation on different modules like Bonus, Gratuity, TDS, Salary, Reimbursement, etc., and also we can run the Exit Management formalities through this option.

Top functionalities should be covered under this module are:

• Creation of the State-wise category for employees by setting minimum wages according to the employee's state and category and calculation of employee(s) bonus.

• Gratuity calculation of the employee(s)rendered continuous service for at least five years, on cessation of employment by taking the last drawn salary as the basis for its calculation along with the gratuity actuarial valuation to view the month-wise gratuity amount of the eligible employee(s).

• Calculation of TDS, salary, and reimbursement of all the working/active employees in the company.

• Generation of payment of salary, reimbursement, and salary with reimbursement.

• Processing of full & final settlement and details when an employee quits an organization.

2. Compliance Report Module: This module is for Compliance reports that are used to generate PF(ECR), ESIC(challan), form 16 details, month-wise Computation, p-tax report, and furnishing details.

Top functionalities should be covered under this module are:

• Loading ECR data and generating an ECR file and a monthly statement of ECR.

• Calculating, updating, and printing of deposit challan.

• Loading, verifying, and generating excel of ESIC return process.

• Generation of ESIC Monthly Contribution (e-Return) excels file.

• Generation of consolidated/merged ESI files of two or more two companies.

• Printing the receipt of the ESIC card.

• Generation of FORM 16, employees’ TDS month-wise statement, FORM 12 BA, Labor welfare fund reports, professional tax return report, and FORM NO. 12B details.

• Generation and printing of furnishing details (form no. 12B).

3. Transaction Module: This module is used for allotting the value in the newly created heads from the Master Module. All the values related to the “Payroll-Salary” are defined by this module before starting the salary calculation part.

Under the transaction module comes the following functionality:

• Policies related to compensatory leave and employee leave structure with their different sections can be entered.

• Saving employees’ attendance on a daily basis and posting daily attendance to the monthly module.

• Applying increment on employees salary and encashing the Earned Leaves depending upon the company’s policy.

• Applying, modifying, sanctioning, approving, and repaying of the given advance or loan to the employee can be managed.

• Entering reimbursement proofs & details of the leave traveling allowance provided by the employer and record of the remaining balance of LTA/LTC in the previous year.

• Declaration of the various investments and submission of investment proofs against the tax declaration made by employees.

• Entering details of non-monetary benefits provided by employers to employees.

• Calculating the earlier month’s pending salary amount of the employee(s), saving any other income amount apart from the salary & allowances of the employee(s), saving any other deduction amount apart from fixed & variable deductions of the employee(s) and providing incentives to the employee(s).

4. MISC Module: This module contains miscellaneous options related to the mails, ESS portal, TDS revised, and so on. With this, the employee can raise their queries and the HR person can send the emails directly to the employee from the software and check the settings related to the ESS module options accessibility, etc.

Top functionalities should be covered under this module are:

• Categorizing helpdesk queries in various divisions.

• Creating different subjects under various helpdesk query categories.

• Defining names for helpdesk queries category-wise and view/modify helpdesk queries status.

• Communication with the employees by setting what modules & fields employees can view & use in their ESS login.

• Generating the ESS user id and password individually or in bulk or changing the payment salary /reimbursement status of employees.

5. Other Module: This module consists of some additional features that help the user to transfer Master data, CTC data, and Leave data from one company to another. It also gives the SMTP setting option which helps the user to send bulk mail to all employees in one go. GL code settings and mapping can be done under this option. It also facilitates the user to update employee data, and change the master head name. From here, the user can activate or deactivate different ESS menu items as well as heads. Lock recalculation is one of the most important features which helps to make changes in the data of any employee without affecting the data of other employees.

Top functionalities should be covered under this module are:

• Transferring all the information related to Employee master, CTC, and leave data from the existing company to the new company including different Earning and Reimbursement heads are to be mapped from Existing Company to New Company.

• Mapping of GL codes by selecting the category, subcategory, Grade, department, location, cost center, etc.

• Activation or deactivation of different heads whether it is Earning, Allowances, Perks, Reimbursement, deductions, or deductions under Sec80C and even the different heads of ESS, like Leave, Attendance, Reports, Utility, HR help Desk, Loan and Advance, Flexi Declaration, Employee Profile, HRM.

• Updating employees’ information, whether it is related to category, department, PF, Bank, etc. Under this head, selected employees’ data can be updated without interfering with other employees’ data.

Along with these top 5 modules mentioned above, there are some more modules like Compliance Reports, Mobile Application Manual, ESS Portal, etc. which are integral to both Payroll Management System and Human Resource Management System that on the whole constitute the top tier HR Management Software, which all in all ensure that utmost accuracy will be maintained during payroll computation.

Thus, HR Pearls came into being to make this divine blessing come true and possible. It's a one-stop solution for overcoming all of the issues and failures encountered while managing people and resources. To arrange a free demo or a one-to-one interaction, get in touch with our professionals by clicking here.