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Choosing Payroll Management Software Made Easy


If you are an HR reading this, I am sure the term ‘payroll management’ would sound scary to you! On the other hand, if you are already using good payroll management software, then I am equally sure that you are thankful that your company decided to opt for it!

Payroll management has been a tough nut to crack since the time of register-based payroll processing. However, times have changed and the modern cloud-based payroll management system far surpasses the functionality and usability of register-based ones.

The latest payroll software utilizes bleeding-edge technologies such as artificial intelligence and machine learning to process employee payroll while also improving the efficiency and effectiveness of the HR department.

If you are in the market for a payroll management system, read on to understand how to choose the right one for your organization.

What is Payroll Management?

In layman’s terms, payroll management is the process of handling and processing employee salaries and maintaining its records. However, as these things go, it is seldom as easy as it sounds.

The calculation of salary itself is a pretty complicated task with the various input parameters required, such as the attendance and leave details, statutory deductions, additional benefits such as HRA, education cess, etc.

Combining this with the additional processing required to disburse the payment to the employees, it becomes quite clear that the process is complex.

However, the payroll woes of HR do not stop with salary distribution. They need to develop the salary slip with the correct figures and share it with the employees.

They also need to maintain a record of all of this information in the correct format. Additionally, none of these tasks can be delayed since it is a matter of employee salaries.

A recent Clutch survey found the following alarming facts:

payroll management software

Image Credit: Clutch

This is where good payroll management software comes into the picture. It can automate all of the aforementioned tasks effectively streamlining the entire payroll management process, making it quicker and easier.

Features of good Payroll Software

These are some of the must-have features of good payroll management software:

  • Automated payroll processing & disbursal
  • Auto-updated statutory compliance
  • Modifiable salary components
  • Attendance & leaves integration
  • Data integrity & security
  • Employee self-service portal
  • Interactive reporting

Choosing the right Payroll Management Software

Selecting the right payroll management system might seem like a daunting task given the huge variety of options available in the market. However, I am here to provide some pointers to make the process easier for you.

Let us take a look at some of the parameters that you need to keep an eye on, for choosing the perfect solution for your company:

  • Cloud-based Security

The future of the HR software industry is ‘online’ as most of the payroll management software available is cloud-based and there is a simple reason for it: it requires zero maintenance by the end-user.

On the other hand, it can be easily updated as per the latest statutory and regulatory changes whenever required.

Having a cloud-based payroll management system also ensures that your data remains secure irrespective of any issues at your location. Additionally, it can be securely accessed from anywhere by using even a smartphone, which greatly improves the remote operability of the software.

  • Easy Integration

The payroll management software that you choose should ultimately be able to interface with other popular applications used in your company.

For example, you might be using different software vendors for payroll management and attendance management, and both need to work together for processing the employee payroll.

If the payroll solution has the right set of APIs, it helps in avoiding multiple data export and import tasks which would take a huge chunk of the HR and account department’s productive time.

You may even automate the entire salary disbursal process if your payroll manager software supports easy integration with other software used in your organization.

  • Scalability & Customizability

Scalability is another aspect of payroll management software that you need to take into account while deploying it in your company. Since the payroll software is going to be a part of your company for a long time, it needs to scale as per the growing demands of your expanding business.

It is simply not feasible to ignore the prospect of a growing company and keep on changing the software every few years.

You are also required to thoroughly go through the customization options before choosing a payroll management solution. While deploying the software, you should be able to modify it as per your company policies.

It should never be the other way round. For example, having the ability to customize the salary cycle or design the payslip as per your requirement would help in aligning the overall payroll process with the existing company policies.

  • Requirements Fulfilment

As mentioned above, the payroll software should be customizable enough for being compatible with the company policies. It should also fulfill every payroll-related requirement as per your company.

For example, if you are a part of the customer service and hospitality industry, you need to include ‘tips’ as a part of the overall salary structure and the software should have the provision for the same.

On the other hand, if you require a separate salary cycle for a particular department which is different from the rest of the employees, the software should have an option for that too.

  • Care & Support

Before finalizing the payroll software, you should always check the software vendor’s customer service and aftersales support.

While most vendors provide a multitude of options to contact them, some restrict it with only chat and emails. On the other hand, some companies might provide a dedicated customer relationship manager for you.

You need to choose the system depending on how frequently you think you might require assistance.

Conversely, you should also check how they impart their training as a part of the deployment process so that your employees need not contact them at all.


I am sure that by now, you would have a robust idea as to the various parameters that you need to take care of while choosing payroll management software for your organization.

Since it is going to be a part of your company for a long time, ensure that it is scalable and customizable as per your needs for the smooth processing of your employee payroll.

On the other hand, if you are doubtful of getting payroll software, I assure you that implementing a good payroll solution not only improves your HR efficiency but also increases overall employee engagement and satisfaction index owing to accurate on-time salary credit and easy payslip access.

Author Bio: John Paul Davis is a content writer with Pocket HRMS, an innovative cloud-based HR software provider in India with over a decade of loyal clientele. His handiwork usually reflects the latest technologies in the HR domain.


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  3. How to Choose Best Online HR & Payroll Management Software In India?
  4. 13 Payroll Statistics You Need to Know in 2022

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