This post was most recently updated on April 27th, 2023
Here’s how startups and SMEs may use automated payroll software to drive compliance reforms in the payroll industry.
With an annual growth rate of over 10%, SMEs are the backbone of the Indian economy, employing 40% of the workers there. This demonstrates how these businesses have grown quickly, with their owners devoting time and money to rethinking their business plans and creating cutting-edge goods and services.
But while handling payroll, SMEs confront a number of difficulties. According to research conducted by RazorpayX Payroll, 53% of SMEs have trouble monitoring, calculating, and making compliance payments.
45% of them also spend too much time gathering information, which often causes them to close earlier than usual. Due to limited resources, SMEs may resort to manual payroll computation, but this comes with a greater chance of danger and, consequently, a larger risk of legal issues.
Alarmingly, each SME has an annual average loss of 67 lakh INR as a result of aging systems. To assist your small business in easily solving compliance concerns and make sure that digitally-driven payroll administration is successful, we’ve listed three steps in this article.
Compliance via new-age technology is thus an essential dialogue that has to be had.
Keeping abreast with changes to compliance requirements:
The economy has grown unstable since the start of the epidemic, with inflation and economic growth occurring alternately or simultaneously.
To handle this, governments will undoubtedly update the compliance regulations, and keeping all these changes under control may be a huge challenge for HR staff.
The Dual Tax Regime will be implemented by the Indian government in the 2020–21 fiscal year, giving workers more freedom to choose the system that best suits their needs.
They can examine their expected taxes for the year depending on their income and regime thanks to RazorpayX Payroll’s updated and Dual Tax Regime-compliant software, which allows them to make an educated choice while keeping their tax responsibilities and savings in mind.
It will be necessary to switch from manual to automated payroll software in Dubai to stay out of legal difficulties and to promptly fix any calculation adjustments that may occur.
Payroll software, like RazorpayX Payroll, effortlessly incorporates compliance updates into their calculations and reports so your staff doesn’t have to put in the extra work and can instead focus on strategic initiatives for the expansion of your business.
The fact that the program is entirely automated and handles both compliance calculations and filings is an additional benefit.
Accurate documentation as well as efficient data management:
Accurate recordkeeping and effective data management are essential for handling payroll-related concerns. To calculate your payroll in accordance with compliance regulations, you must have a digital system that can monitor your workers’ attendance, leave utilization, and pay raises.
Since you employ contract or gig employees, as your firm slowly grows, the headcount will increase along with the variety of employment arrangements.
In addition to keeping up with your company’s expansion, RazorpayX Payroll will correctly record these changes to make sure that everyone receives their just compensation.
Their straightforward software transforms into a crucial tool to guide corporate strategy and make choices that will provide the required results thanks to customized dashboards that give real-time data and insights.
Use a self-service payroll approach instead:
Giving workers the authority to complete their records on time and without difficulty is a tactic to decrease the strain on HR personnel while recordkeeping becomes the purview of digital and payroll systems.
It does require a lot of time and effort to hunt out timesheets and expenditure reports. The user-friendly RazorpayX Payroll solutions, which also integrate with Slack, have become a crucial tool for SMEs to achieve this employee autonomy.
It will be beneficial to have a platform in place that gives workers the tools and solutions they need to add they’re pertinent data as and when required. It will make essential records and papers easier to access, increase the effectiveness of HR operations as a whole, and boost employee satisfaction.
One of the most important aspects of creating a positive work experience is payroll. Additionally, according to research from Kronos, 49% of employees will start a new job search following two paycheck problems.
It seems sensible that there would be limited tolerance for payroll errors, given that individuals often live paycheck to paycheck.
Therefore, it becomes crucial for SMEs to prevent both legal problems and payroll mistakes in order to keep their talent.
Your teams will have more time to concentrate on the business and people strategy for quick development and growth if a specialized payroll solution manages this challenging procedure.
Here RazorpayX Payroll steps in as your top companion on your payroll and company transformation journey.
Their digital platform, which was created specifically for startups and growing businesses, combines the capability of outsourced services with that of payroll software to provide a one-click, smooth, and end-to-end compliant payroll processing experience.