Payroll what does it mean? HR payroll activity, at the border between the HR department and the financial accounting department
- What does payroll mean?
- Payroll specialist what is it and what do they do?
- About HR payroll software
- Key benefits of a payroll accounting software for the operational area of the company
- Payroll activity at the border between the human resources department and the financial accounting department
- Benefits of a payroll administration software for the management department
- SeniorHCM (Human Capital Management) – software for human resources management
Learn what payroll means, what activities a payroll specialist performs, and how a payroll automation software can improve the process.
HR and payroll trends change along with the work environment, recent economic challenges, employee needs, and continuously evolving technology. The development of software solutions capable of keeping up with the dynamic of the human resources department and payroll accounting software is absolutely necessary because, in addition to legal implications, efficient management of payroll related data is essential for creating an effective business strategy.
Payroll activity starts with employee registration, attendance tracking, working hours records, and continues through the submission of salary related declarations to state institutions and the analysis of salary related costs by profit centers etc. In this regard, a modern payroll automation software helps industry professionals optimize all these processes, simplifying and automating HR department operations.
In the following sections, we will discuss what payroll means, the role of a payroll specialist, and how the process can be optimized and errors eliminated by using a payroll software.
What does payroll mean?
In free translation, the term “payroll” means “payment processing”, which means that payroll refers to salary management. The term is used both to refer to the employees a company must pay and to the total amount of money the company must pay for the work performed by employees based on their employment contracts.
Payroll activity can be considered one of the most complex tasks a company must manage. It includes a wide range of duties and responsibilities, from personnel file administration to everything related to labor law and individual income taxation.
Payroll specialist – what is it and what do they do?
A payroll specialist is responsible for calculating salaries and allowances, as well as preparing declarations for state institutions and processing accounting entries. To manage the company budgets and expenses, a payroll specialist works closely with different departments in the organization, ensuring the smooth running of operations.
Responsibilities of a payroll specialist
About HR payroll software
A HR software solution for payroll automation calculates salaries correctly, including gross to net or net to gross conversion, considering salary deductions, installments, bonuses, paid or unpaid leave, etc. A payroll program also automatically updates seniority levels for each employee and can manage multiple types of contracts, such as employment contracts, authorized individuals, copyright contracts, civil agreements, and others.
At the same time, a flexible payroll accounting software can provide data to other related systems and integrate with additional information sources to complete the payroll process.
Key advantages of a payroll accounting software for the operational area of the company
Customize salary calculation elements with payroll software
- For example, if a company has a wide variety of types of hours worked by its employees, through the timesheet functionality, a payroll specialist can define the types of hours used as clearly and comprehensively as possible, and then the worked hours and the salary calculation are linked in the system.
Ensure compliance in payroll activity with payroll software for salary calculation
Salary management is an area of the human resources department regulated by a series of laws that require high accuracy. For this reason, payroll is a sensitive topic for both employees and companies, as both sides are affected by legislative changes.
A modern payroll automation software automates and simplifies the payroll process and ensures compliance by constantly updating to all legislative changes and adapting to today’s digital environment.
Even in situations where the law is not specific enough, does not cover all operational scenarios, or provides only general guidance, payroll accounting software enables differentiated calculations depending on the particular business case, while still taking legal regulations into account.
The HR payroll activity, at the border between the human resources department and the financial accounting department
The payroll automation software application improves communication between the HR and financial accounting departments by automating the transfer of payroll cost information from HR to accounting. Since salaries sit at the border of the two departments, they must also be recorded in accounting.
With the help of a flexible payroll software, the payroll specialist has access to salary cost data already classified by various previously agreed cost recording criteria.
Payroll related automations can be achieved both through direct integration with accounting software and through configuring accounting entries with salary costs split by different types of activities, cost centers, etc. which can later be exported into Excel files.
Benefits of a payroll administration software for the management department
Real time access to payroll related information
Management of the company handles strategic decisions that influence the good functioning of the organization, including salary related decisions, which impact both the company profit and loss account and the employees.
The payroll software solution is essential for organizational management because it provides quick access to detailed information related to salaries and delivers the necessary data in a simplified format. Also, data analysis and insights obtained from payroll software support the optimal use of this important business area payroll.
Payroll analysis and reporting by departments, activities, time periods, or based on qualification level
A modern payroll management software application enables analyses and comparisons by departments, activities, employee qualification level, or specific time periods.
When it comes to reporting and analysis, configuring salary calculation elements in the payroll automation software is important to enable accurate forecasting and monitoring of key operational aspects. This way, certain financial initiatives specifically targeting employees (such as sales bonuses) can be tracked, salary calculation elements can be analyzed at a detailed level, and a complete view of employee related costs can be obtained.
Learn more about the SeniorHCM software system
One single application for all HR activities in the company – automate human resources management with the solution from Senior Software
SeniorHCM (Human Capital Management) – flexible software for human resources management
Recruitment • Training • Time tracking • Payroll • Reporting
An automated payroll solution payroll automation software becomes a true strategic business partner for a payroll specialist, as it can calculate very easily and quickly the salary of each employee, as well as the related taxes and contributions. Thus, the payroll application acts as an income and expense calculator that simplifies payroll processes in any company.
A modern payroll software, such as the solution provided by Senior Software, helps companies streamline both operational and decision making processes. Timely access to information, the ability to generate quick reports for the targeted HR processes, along with analytics and integrations between different human resources areas, provide competitive advantages across multiple business dimensions, not just in HR.
Some of the benefits gained with the payroll application from Senior Software
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Manage documentation for all employees and collaborators
The payroll application provides access at any time to the employees electronic file and allows easy management of all related data.
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Calculate salaries and related taxes easily and quickly
Flexible and user friendly, the HR payroll software application helps you calculate salaries and their related taxes quickly and easily. In addition, the solution allows you to centralize information about employee timesheets, medical and vacation leave, granted bonuses or salary deductions, giving you access anytime and anywhere to critical information about your employees.
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Generate payslips and payroll statements securely
The payroll software generates payroll statements, payslips, employment contracts, summaries, and reports. Since payslips can be delivered both in physical and electronic format, they can be securely sent via email to all employees.
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Real time access to reports
The application provides quick access to centralized data, which can be viewed anytime from any device connected to the Internet, in visual or graphical format. The data is processed into flexible reports from multiple perspectives, supporting fast and informed decision making.
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Legal compliance
The payroll automation software allows you to automatically generate the 112 Declaration based on payroll data, and later, if necessary, rectifying declarations can also be issued directly from the system.