Payroll Division is an integral part of any firm functioning even with minimal workforce. This department is typically considered as a necessary operating expense for the firm, yet forges a unique bond of reliability and confidence between the employer and employee.

The trust factor developed by the employee becomes their motivation for performing better. An employee should be assured of receiving their salary payment at the designated date with no errors in the payslip. When firms fail to achieve this employees get dissatisfied and would tend to leave the organization.

Employers should never take the Payroll division as an afterthought. It should be given appropriate attention in the form of :

• Advertising, interviewing, & training of new recruits as replacement
• Avoid compliance issues leading to penalties
• Additional time & resources spent on rectifying errors etc.

When firms need to run an error free payroll, then the task cannot be single handedly done by humans. Despite the additional effort and time devoted to the tasks, the scope for error proof payroll cannot be guaranteed.

Also read : Why is Human Resources a pivotal division to adopt Robotic Automation?

How does introducing payroll automation make a difference:

We have witnessed huge strides made in the fields of Accounting automation and Bookkeeping automation. It has also started to make inroads into Payroll. The reason being robotic bots function on the founding principles of imitating human movements not thought process. If given structured inputs, it delivers reliable and expected results.

While humans take immense time and effort, yet cannot vouch for the accuracy of their deliverables. On the other hand, Payroll bots, executes the job with precision, accuracy and speed. Therefore, all recurring and data entry jobs can be carried out easily by thes payroll robots.

It is understood that the payroll department is a reliable candidate for deploying automation, given the fact that producing error free results all time is a crucial function.

Let us now dig deeper to understand the reasons why even small firms can deploy payroll automation.

1. Payroll automation enables easier access & retention of employee records:
   All business organizations are mandated by law or Income tax departments to properly handle and maintain employee data. This includes their confidential details (like ID, bank number), resume, joining date, salary details, etc. In addition, companies need to maintain employee pension plans and tax returns files for a minimum period of time.
   For a smaller company, additional office space is an extra operating cost in the form of (rent, stationery etc.). Firms automating payroll trigger a new way of working through file accessibility, controlled visibility, safeguarding against natural calamity etc. Though an initial investment is needed, yet the results are worth the investment.
2. Payroll automation safeguards against security breach:
   Firms always allocate funds in their budget for protection against theft, arson, etc of offices. However, cyber security should fundamentally be observed at any organization using any form of digital information. When payroll automation is introduced, apart from the work accuracy, it also protects employees’ confidential information, without additional cost. Further, it protects the privacy of employees through
   
   • Storing valuable information in encrypted mode
   • Dissuades any form of human interference without authorization
   • Proposes dual authentication
   • Hierarchical data segregation and
   • Backed up with log-in trails.
   
   The company is also in a position to upgrade the cyber security as per the needs and demands.
3. Payroll automation helps in tax compliance:
   Small firms due to deployment of payroll automation, are relieved to a greater extent in matters related to the compiling, managing and tax filing. Due to the accuracy and rapidity of updated records, these firms are in a position to file tax returns on time. These also prevent the hassle of unnecessary paperwork. Failure to adhere to tax compliance, or inaccurate filing of the firms can lead to hefty and unnecessary fines by the tax authorities.
4. Payroll automation guarantees recovery of employee hours:
   Small firms spend an excessive amount of time calculating employee payroll manually and clearing their payments. With a lot of time spent on just data entry, vital tasks are left unchecked by the payroll department. With automation, the administration and repetitive tasks are handed over by robotic software and employee time is regained to do other meaningful functions.
5. Payroll automation provides quick ROI:
   Firms can regain their investment at the earliest as payroll bots are built to tailor to your business needs. It helps in bringing efficiency in collecting information from employees time, attendance, apply leave or unpaid leave and send to approving authority for payment release. Additional cost incurred for recruiting / training / remuneration etc is eliminated.

Also read : “Robot” as a fellow worker - a trusted friend or despised foe?

The above points illustrate that payroll automation deployment is viable in any organization. If you are interested in automating your payroll we can provide you with ready made solutions. Call us for a demo.