SMEs are the backbone of the Indian economy. With adequate support and government incentives, the industry can help the economy recover from the COVID-19 damages. They have always been economic growth drivers, contributing around 40% to the country’s export and 30% to the GDP.
The SME sector generates approximately 110 million jobs, which is over 40% of the Indian workforce. Since businesses focus on building their product and growth, payroll management often takes a backseat.
Payroll execution is one of the most crucial tasks that require eminent accuracy and efficiency. Salary calculations, compliance deductions, reimbursement, etc., consume many man hours. Also, manual methods for processing payroll are error-prone, and a miss might attract unnecessary penalties.
Read on to know why SMEs should adopt payroll software and how to choose the right payroll solution.
Why SMEs should adopt a payroll software
Here are some reasons behind the lack of importance given to setting up a payroll process by SMEs.
- SMEs usually run on the constraint of budgets, and hence, an automated payroll system is considered to be very costly
- Since these businesses work with fewer employees, it is assumed that it is easy and cost-effective to manage their payroll manually
- Payroll teams start having hiccups because of multiple spreadsheets and complex formulae
- SMEs need to hire skilled people to make sure all payroll calculations are compliant with the latest tax laws
- Changing regulations often lead to compliance issues, increasing the number of manual hours
- Keeping track of employee documents is also tiresome
How to choose a payroll software
Before looking for the best payroll software, SMEs should look for a checklist of features that would be necessary for their business.
The software should perform all payroll calculations including salaries, deductions, reimbursements, etc. and execute them automatically on time.
It should handle compliance payments like TDS, PF, PT and ESI automatically, along with their return filings.
Time & leave management
It should provide real-time attendance tracking along with leave management through biometric devices.
It should be able to handle employee reimbursement processes seamlessly; from adding expenses to calculating and settling them.
Insights & reports
It should provide accurate insights with reports; reports including salary and HR registers, PF/PT/ESI challans, employee documents, etc. These insights will help businesses to maintain accounting records properly.
Insurance for employees
Providing group health insurance will motivate employees to contribute to long-term organisational goals. Businesses should opt for payroll software that provides customised insurance policies for employees at affordable rates.
It is important for payroll software to provide a self-serve portal for employees. It empowers employees to access their payslips & Form 16, declare investments from anywhere and at any time.
No hidden charges
Businesses should study the pros and cons of payroll software before investing their working capital. Cloud-based software with 24*7 accessibility to all the services without any hidden charges will be an apt fit for SMEs
RazorpayX Payroll to your rescue
RazorpayX Payroll has been designed to take care of all things payroll, right from onboarding employees to automating compliance payments & their return filings.
It helps HR, payroll and finance teams to manage payroll with a comprehensive set of features at affordable pricing; making it an ideal payroll solution for SMEs.
The payroll software eliminates manual intervention in executing payroll. It also automates compliance payments like TDS, PF, ESI and PT along with their periodic filings, salary disbursement, reimbursements, leave management and much more.
Also, RazorpayX Payroll has enabled group health insurance to provide comprehensive and customised policies at economical premiums, in partnership with Plum and ICICI Lombard, for SMEs and startups.
It’s now time to automate your payroll with RazorpayX Payroll and spend valuable time on accelerating your business growth!