Benefits of an Payroll System

What is an Automated Payroll System?

An Automated Payroll System is an integral part of an HRMS system. It enables the company to process all its payroll functions through an automated and computerized system as compared to manual entry bookkeeping. The benefits of an automated payroll system are discussed below.


The faster and easier wage calculation

Manual payroll entries are extremely time-consuming. They require precise management of a variety of documents and any mistake can have heavy consequences for the company and the employees. If you get this task outsourced, then it will take more time and be costlier.

An Automated Payroll System can perform all of the necessary tasks with ease and with time to spare. Also, it reduces the chances of foul play and also makes conducting faster and easier.

Employers should note that despite all these advantages, it is not always error-proof. The result will depend entirely on the accuracy of the original payroll entries.

Better accuracy in work hours

Manual payroll systems require calculating time clock data and wages by hand which is tedious and time-consuming and also offers multiple opportunities for errors. With an Automated Payroll System, such data can be imported directly into the pertinent software. The software then takes care of any necessary calculation. Also, any changes that are required (for eg:- an employee didn’t clock out, overtime not processed, etc) can be taken care of quickly and easily.

Easier tax and payroll calculation

Any bonuses, paid vacation, contributions to an Employee Provident Fund can be difficult to calculate manually and errors may occur if done by hand. Automated Payroll System not only do these calculations but also arrange them in the industry-standard format.

This software also has the tax method coded into them from the get-go according to the specifications by the company. This ensures compliance with local labor laws and reduces the chance of government fines.

Improved Record keeping 

The government asks employers to keep employee data for some time. This data can include but is not limited to, tax details, contributions to EPF, overtime, etc. An Automated Payroll System can itemize this data and make record keeping a breeze

Environmental consciousness 

Using an Automated Payroll System significantly cuts down on the amount of paper and other equipment that is used for such HR-related activities. This is not only good for the environment but also cuts down on costs associated with the purchase of such equipment.

Assists in Financial Planning 

An Automated Payroll System ensures that funds reach the employees at the same time every pay period. This makes budgeting a lot easier and also maintains employee trust and happiness as they get paid without delays while also avoiding any penalties stemming from late payments.

Easier modifications

Any changes to the payroll process are guaranteed to be long and arduous, resulting in higher costs and more manpower-intensive work. However, an Automated Payroll Software makes this step extremely simple by allowing any changes to be made directly in the main database by those with the required permissions. If you trust your employee enough, you can also allow them to make these changes themselves


Proper countermeasures are necessary to safeguard against data breaches and information loss. An Automated Payroll System can help in this regard by keeping a log of any changes made to the data within the system, provided employees log in with their credentials. In case of any malpractice, it allows the employee to catch whoever did that and even roll back to a previous version of the work.


As mentioned, an Automated payroll system comes bundled with every HRMS system and the benefits of an automated payroll system are helpful. It not only makes life easier for the employer, but it also has multiple benefits for the employees. By learning how to utilize this tool effectively, an organization can get make a hard and arduous process significantly easier.

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