3 points to consider in your HRMS payroll requirements analysis

Like any other HR automation tool, a standard payroll module will offer certain functions as standard. The bare minimum might be:

• Calculate gross and net employee pay
• Calculate deductions (taxes, social security, etc.)
• Pay employees (by direct deposit or check), and produce year-end tax forms and returns.

Everybody is paid correctly and on time, and the necessary amounts are withheld and paid to the appropriate authorities. But a payroll module can hold other benefits than simply paying the workforce what it is due.

1. Self-service

The first benefit of payroll self-service The first benefit of payroll self-service is that it puts each employee’s information at their fingertips, avoiding many everyday inquiries about pay stubs, deductions, and similar issues.

This frees up HR staff to focus on more strategic work. Another key benefit is that employees are responsible for updating their personal details, including bank account changes that can affect direct deposit. By assigning updates to the right person, more HR time is saved, and database accuracy improves, a double win.

Recommended download: Nail down your key payroll requirements using this four-step guide to managing payroll with HRMS

2. Notifications, updates, and alerts

Efficient automation means your payroll software prompts you to act when needed, sending reminders when payroll data must be entered or processes started. These updates should be fully customizable, so you only receive the ones you want. If legislative issues arise that could affect payroll, such as tax law changes, automatic updates should address them to ensure the system deducts the correct amounts for each employee.

Finally, some of that pay-related data can be put to other, more engaging uses. For example, each employee record will include their birthday and start date with the organization; the payroll system might be set to automatically notify the relevant manager of such anniversaries, enabling them to mark the occasion (in a manner appropriate to your corporate culture and values, naturally).

3. Payroll cards

Some systems support payroll cards, which are prepaid debit cards credited with the employee’s salary each pay cycle. This is convenient for employees without a bank account who have difficulty using direct deposit or paychecks, since check-cashing fees can add up over a year.

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Final thoughts

Other features that might be attractive include: managing benefits packages, mobile apps for employee access and payroll management (i.e., you can run the payroll when not in the office), and seamless integration with your bookkeeping software. The question is, when considering HRMS payroll requirements, what do you need your payroll software to do for you?