Effective Ways of Using a Payroll System Software


Effective Ways of Using a Payroll System Software
Pratibha Devasenapathy | Sep-04-2020

What is payroll?

Managing employee payrolls is one of the most crucial, complicated and yet, highly critical HR processes. However, since most manual routine tasks are now being automated by payroll software and hardware solutions, payroll management has become more comfortable. It is because of the employees that companies can grow and flourish and reach their goals. The payment system, thus, needs to be an accurate and speedy one. There are a number of ways in which the payroll system may be used apart from calculating the salaries and disbursing them to the employees.

How do we process payroll accounts?

Companies usually hire payroll services from third parties by way of outsourcing which make the process of accounting for payroll and easy and effortless task. Payroll service provider manages multiple tasks such as tax obligations, employee’s time calculation, preparing checks and salary report management. It eventually reduces the operating cost of the business.

10 tips to make your payroll implementation smooth

Prepare and check important details

Check employee details and ensure all necessary information is current and recorded, including:

  • Tax file number
  • Full name and address
  • Start date of employment
  • Date of birth (if under 21)
  • Bank account paid into
  • Pay details such as gross wage, allowances, hourly rate, employment period

Communicate expectations

Before signing any contracts, ensure you have discussed your business’s payroll needs in depth so you can immediately implement an appropriate solution. Any sort of misunderstanding can result in delays and additional costs.

Check legal and regulatory compliance

Determine how the compliance process will be managed when legal, taxation and payroll tax requirements change in future.

Standardise pay policies

Review all your pay policies and procedures to ensure there are no inconsistent applications or outdated/inefficient workflow patterns. For example, shift differentials included in overtime calculations in one department but not another.

Develop realistic schedules

Work with your payroll provider to develop a flexible but realistic schedule for implementing your new payroll system. Aim to implement at the start of the year or in the first quarter to ensure there’s plenty of time before the end of financial year to familiarise yourself with any new processes.

Synchronise integrated systems

There are generally one or more systems that will need to be integrated with your new payroll system. Time and attendance, scheduling and accounting software are some examples.


Determine who, if anyone needs training in relation to the new payroll system and organise that as soon as practical. This mainly applies to in-house payroll software as opposed to an outsourced payroll solution.

Test the system

Before rolling the software out, you should thoroughly test every aspect of the new system to ensure data is accurate, payrolls are processed accurately, and that the system does improve operational efficiency.

Communicate with staff

Remember to maintain regular, consistent and transparent communication with your staff throughout the implementation process. Your employees are the key to determining how well the new payroll system is functioning and whether anything can be done to improve it.


Ensure you continually review how the new payroll system is performing with staff, your payroll providers and any other relevant persons.


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