HOW CAN MSMES BETTER MANAGE THEIR PAYROLL SYSTEMS?

Payroll can be a pain for budding Micro, Small, and Medium Enterprises (MSMEs) who are looking to grow their profits, scale their operations, and take their business to the next level. 

However, while having a functional payroll management system is critical to success, getting there is easier said than done. MSMEs face various hurdles in doing so, including limited human resources, compliance with the maze of bureaucratic regulations, complicated benefit computations, and diverse payroll schedules, among others. These, not to mention the birthing pains of transitioning to a payroll management system. As such, some MSMEs go at it the good old fashioned way: manual pen and paper processes that take time and effort.

If you’re an MSME on the fence about investing in a payroll management system, you’re in luck. We outline below what makes a payroll management system worth it and what you should look for in one.

1 Automated benefits and taxes calculation

A good payroll management system should, at its very core, enable MSMEs to automatically crunch the government-related mandatories of their employees, including taxes and contributions to social security, state healthcare, and housing, with all computations compliant with regularly updated standards. Such benefit calculations can be complex and may take into account even factors such as location, working hours, and active days. One wrong entry and you might find yourself in a needless and easily avoidable legal battle. Automated calculations reduce the risk of human error, ensuring accurate disbursement of benefits to employees.

2 Salary and payroll cycle management