3 ways payroll software can help ease compliance issues
SMEs are the backbone of the Indian economy and are known to employ 40% of the country’s workforce with an average growth rate of over 10%. This points out the rapid expansion of such enterprises, with their leaders investing their time and resources in redesigning their business strategies and building innovative products and services.
But SMEs face a range of challenges when processing payroll. A study led by RazorpayX Payroll has shown that 53% of SMEs face issues with tracking, calculating and making compliance payments, and 45% spend too much time on input collection, often extending business hours. Given limited funds, SMEs may recourse to manual payroll calculation, but the incidence of risk is higher in such cases and, inevitably, higher potential for legal troubles.
It’s also alarming that the annual average loss depending on legacy systems is INR 67 lakh per SME. This is why compliance through new-age technologies is an urgent conversation to carry forward, and in this article, we list three steps to help your small enterprise address compliance issues with ease and ensure that digitally-driven payroll management is a success.
Staying updated with changes in compliance regulations
Since the onset of the pandemic, the economy has become unsteady, with inflation and economic growth taking place alternatively or side by side. Governments will inevitably change compliance laws to manage this, and keeping all these changes in check can be a mammoth task for HR teams.
With the Indian government introducing the Dual Tax Regime in the 2020-21 financial year, employees have greater flexibility in choosing the regime which works best for them. Because their software is updated and compliant with the Dual Tax Regime, RazorpayX Payroll enables them to see their projected taxes for the year based on their income and regime so that they can make an informed decision while keeping their tax liabilities and savings in mind.
Shifting from manual to automated payroll software will become essential to avoid legal troubles and immediately correct the calculation changes that may arise. Payroll software such as RazorpayX Payroll seamlessly integrate compliance changes into their calculations and report so that your employees don’t have to do the heavy lifting and can instead devote their time to strategic endeavours for your enterprise growth.
An added bonus is that because it’s a fully automated software, compliance calculations, as well as filings, are taken care of.
RazorpayX Payroll like AWS should be one of the primary products a startup founder should subscribe to for managing the startup's payroll and its related compliances.” -Aravind S., Founder, QED Corporation
Accurate recordkeeping and efficient data management:
Data management is crucial in managing payroll issues. Having a digital system that can keep track of your employees, their attendance, usage of leaves, and pay hikes is critical to calculating your payroll according to compliance requirements.
As your business steadily expands, the headcount will grow as well, and so will the diversity of employment contracts as you operate with contractual or gig workers. RazorpayX Payroll will not only keep pace with your business growth but will also capture these transitions accurately to ensure that everyone gets their dues. Through customised dashboards which offer real-time data and insights, their intuitive software becomes a critical resource to lead business strategy and take decisions which will deliver the desired outcomes.
Switch to a self-service payroll model:
While recordkeeping becomes the domain of digital and payroll solutions, a strategy to lessen the burden on HR teams is to give employees the autonomy to fill in their records on time and with ease. Chasing timesheets and expense forms does take a lot of time and energy. RazorpayX Payroll’s user-friendly solutions which also include its integration with Slack becomes an important enabler for SMEs to achieve this employee autonomy.
Having such a platform in place which empower employees with tools and solutions to insert their relevant data as and when needed will be fruitful. It will ease access to important records and documents, improve HR functions' overall efficiency, and create the right employee experience.
RazorpayX Payroll is like a breath of fresh air among Payroll software. Our payroll is almost on auto-pilot & integrations take care of statutory compliances. A simple interface ensures that employees understand their earnings in real-time & can optimize them on the go. Slack integration is a big plus, never seen a reimbursement process so efficient." -Srishti Bajpai, AVP Finance, Pixxel
Payroll is always one of the most critical facets of making an engaging employee experience happen. Research by Kronos has also shown that 49% of workers will begin a new job search after two paycheck errors. Given that people often live paycheck to paycheck, it is natural that there will be little tolerance for payroll mistakes.
It becomes imperative for SMEs then to not only avoid payroll errors to retain their talent but also to steer clear of any legal issues. Additionally, having a dedicated payroll solution taking charge of this complicated process will allow your teams to have more time to focus on the business and people strategy for accelerated expansion and growth.
This is where RazorpayX Payroll comes in as your number one partner on this journey to payroll and business transformation. Designed exclusively for startups and rising enterprises, their digital platform combines the functionality of payroll software with that of outsourcing services to deliver a one-click, seamless, and end-to-end compliant payroll processing experience.