Should you opt for Online HRMS Payroll Software which can be modified as per your needs or would you modify your process as per software.
If your choice is that you would modify your process as per software then the choice becomes little easier and now you only have to make sure that the calculations viz. TDS, PF, ESI, PT, Arrear, LWF, Overtime, Timesheets etc. are correct. To make sure that everything works fine you should short list the companies based on the following parameters:
- Does the software has option to switch on and off calculation methods viz.
- Some companies deduct TDS on the amount paid as arrear
- Does it allow two employee codes (which is useful for temp staff companies)
- Does it allow to configure attendance with biometric machine automatically and does it also allow to configure with any of the employee codes.
- Does it allow to lock the rent entry by employee in ESS
- Does it allow to create unlimited pay components
- Does it allow to set the properties or behavior of pay components
- Does it allow to key in and also to import – export the data
- Does it provide some kind of report builder or creator
- Does it provide to set PF configuration like some companies do rounding on arrear PF separately and salary separately, calculation of PF on OT, setting ac2, 21, 22 etc.
- Does it provide PT, TDS, ESI configuration
- Does it provide ESS (Employee Self Service)
- Does the ESS contain pay slip, chapter via investment declaration, reimbursement, leave, homepage configuration, marking attendance from homepage, holiday selection, ticketing,, all types of reports so that the employee does not repeatedly asks questions from the hr or finance person. The software should be self explanatory so that time is saved and this factor is one of the most important to calculate ROI. This would be one of the most important test for any software to pass because if the employees stop asking questions from the person responsible for payroll process then imagine the amount of time employees save for themselves and the saved time of payroll person. And more importantly employees get the answer with a click so they feel might satisfied. All types of information should be available to the employees viz. pay slip, reimbursements, weekly off, holidays, attendance, birthday list, anniversary list, FBP selection, leave balances, TDS calculation summary loan and advances, PF statements etc.
If you want that the software is modified as per your process then apart from the above mentioned questions it is very important to know if the company is ready to customize, would they also provide the source codes as it is customized.
Another very important advice is that payroll and hr teams should not interact directly with the vendor, there should be a bridging party from your side i.e. client's side. This role should be given to a person who knows how to handle the project and may not know payroll knowledge. The role of this person is to make sure what the payroll and hr team has demanded and what has been delivered. Many a times you would find differences cropping up between client team and vendor team. To take care of these differences there should always be an IT person who acts as a project coordinator.