Payroll Software, Definition, Functions, and Benefits for Companies


Zerrows.com - Your growing business, of course, is followed by an increase in the number of employees. A large number of employees will increase the workload in calculating payroll, payroll. To solve these problems, you can use payroll software. Have you ever heard of payroll software? And what are the benefits? Check out my review of the following payroll software.

What is Payroll Software?

Before you use this software, it helps us understand what payroll software is. In the field of accounting, payroll is a method specifically designed so that the payroll process in the company can be calculated accurately. In managing payroll, knowledge of company-employee law, taxes, and good, organized, and effective filing methods is required.

In practice, many companies manage this payroll using a spreadsheet. For larger companies, using spreadsheets is not efficient. So an application is made called payroll software. This payroll software is used to simplify payroll management in a company.

In calculating salary, there are many components involved. Attendance, overtime, leave, permits, Health Insurance, taxes, etc., of course, make the calculation of wages not easy. These components can be obtained from employee data, usually stored in HRIS – Human Resource Information System. There is payroll software which is one of the HRIS modules; some are made separately.

The main reason for using this payroll software is time-saving. Imagine if there were thousands of employees and tens of salary components that were calculated every month. Of course, this would take a long time. By using payroll software, the salary value is calculated automatically based on the components of each employee.

Matters related to finance are always crucial for the company. Small payroll mistakes, will have a significant impact because it relates to people and money. Therefore, this payroll software is one of the applications that you must have.

Benefits of Payroll Software

If your company decides to use payroll software, here are some of the benefits you will get.

Salary Calculation Automation

The main benefit, if you use payroll software, is to automate salary calculations. Which payroll previously did manually with spreadsheets is now calculated automatically with payroll software. With automatic analysis, it will save you time. All salary components are entered and calculated quickly.

Making Tax Reporting Form

One component that must be calculated is the income tax. This income tax must be filled in the template format from the tax office. This tax reporting form can be printed directly once the payroll calculation is completed using payroll software. After the form is made, it can be reported directly to the tax office. Some payroll software even features automatic integration with the tax office system.

Self-service with Employee Portal

Payslips and tax withholding proofs do not need to be printed and distributed to employees. Payroll software has an employee portal that can be accessed online. All information regarding employee personal data and salary and tax history are all available on this portal. So that employees can do it themselves, self-service.

Access Anytime Anywhere

Cloud-based payroll software is payroll software that can be accessed online. The online system provides easy access to users. As long as there is the internet, the application can be used anytime and anywhere. This feature offers mobility and easy access to information for your employees.

Reports as Decision Support

The reports needed by the personnel and accounting departments are all available in the payroll software. By analyzing these reports, it is hoped that it can assist in making strategic decisions regarding salary allocation.

Tips for Choosing Payroll Software

Here are some tips for choosing payroll software for your company.

Define Your Payroll Needs

Before choosing a payroll software product for your company, first, define your payroll needs. How many permanent employees, how many contract employees, how much the company's salary costs, the need for payslips and proof of tax deductions, etc. Understanding your company will help to make the right payroll software decision.

Allocate Budget

How big is the budget for this payroll software investment? It would help if you decided how big the budget is not to buy too expensive products. Adjust to your needs and budget.

Compliance with Tax Rules

Consult the personnel and tax department, what needs to be reported to the tax office. Different industries allow for additional tax rules. Is the payroll software suitable for your tax calculation needs?

Check the Features

After understanding the needs, the budget allocation is in place and already studying the tax rules. It's time to examine the features of the product. Some important features must be present: compliance with tax regulations, employee portal, mobile application access, and reports provided.

Use the Trial Package to Evaluate

Many payroll software provides free trial packages for 15-30 days. You can take advantage of this offer to evaluate its features. Taking advantage of this free trial can help you decide which payroll software product to choose.


Payroll software is an application to help your company calculate salaries. By using this payroll software, some of the benefits you get include automatic salary calculation, creation of tax reporting forms, self-service using the employee portal, information that can be accessed anytime and anywhere, and finally, the availability of reports to support strategic decisions.