Types of Payroll Management System

Offline payroll systems are usually part of payroll or ERP software and run on internal computer systems. Software vendors have to incorporate such changes and update the software at their client’s end. If the client has implemented some customization to the software, updating has to be done carefully to not destroy such customization. More importantly, employer users have to find a way of maintaining all employee-related information for a period which is at least 7 years.

Online payroll systems run on the Cloud. The software is maintained and updated by the vendor regularly. Internally, the employer has to have an attendance management system that is linked to the online payroll system. Once the attendance system updates monthly information to the payroll system, the online payroll system will calculate and generate employee-wise earnings and deductions that can be used to pay the employees. Online payroll systems also have flexible report generation that will allow you to analyze your payroll pattern and link it to employee and company productivity.

Online payroll systems are easier on your infrastructure particularly if you have many offices, and employees spread across geographies. Choose the payroll system for you carefully.

Computer-Based Payroll System

This is where a computerized payroll system offers immense help. Once the attendance records are fed, a payroll system calculates all earnings and deductions correctly. Modern payroll systems can also be linked to bank accounts for auto disbursement of salaries. This usually consists of a list of employee codes and names, bank name and account number, IFSC or similar code and the amount to be transferred. This list can be generated by the payroll system and sent to the bank.