Payroll automation is a technological breakthrough that holds the promise of transforming the way in which payments are made. It has the potential of leaving the workforce to concentrate on its core duty which is to get the work done while computers and intelligent machines do the crunching in determining the wages and pay of workers across the enterprise. This is the future and the future has arrived.
In a nutshell, payroll automation is the use of computers to produce paychecks and to manage the benefit payments for a firm. It is integrated into the firm’s enterprise resource planning system providing an overview of the firm’s finances. Additionally, it can manage customer relationships, production processes, personnel resources, invoicing and accounting. That is the long definition as offered up by Wikipedia.
As an internet company or startup that is operating on a lean budget and with a vast pool of workers scattered all across the globe, the most viable solution to manage payments, wages and invoicing is using a cloud-based payroll software. This system is not only ideal due to its simplicity but also because it frees up the time and resources needed for this to engage in the core business of the enterprise.
The payroll systems like etc.com are designed to take care of the following distinct activities smoothly and flawlessly:
- Wages – First and foremost, as the name suggests, these systems are primarily designed to take care of the payment of workers’ wages in a clear, simple and transparent manner. So in effect, it is good for making calculations and determining the payment of wages and the settlement of tax withholdings. Additionally, it is used for delivering wage calculations and certificates to employees all across the enterprise.
- Statistics – Since the system primarily deals with the collection and management of large amounts of financial and pay data, it can be mined effectively in order to come up with a whole load of information in the form of statistics which can then be effectively used by many departments across the enterprise for the purpose of making evidence-based decisions.
- Contracts –The information that is collected by HR during the hiring process and the wage determined therein provides a treasure trove of information which can be used in coming up with a contract between the employer and the employee. It can also be used by extension in the calculation of annual holidays for the employee in question.
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Reporting – The data collected by this systems can be used in a variety of ways in coming up with information that is precise and thus in generating a wide variety of reports that are of use across the enterprise. Some of the reports include the financial position of the company in terms of assets vs. liabilities, provision of regulatory reports to the tax authority and to the insurer, and also in managing employee deductions and benefits.
