6 Reasons Why Payroll Software Is Important For HR Management


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Time is a precious resource in the fast-paced world of business and technology. HR persons spend countless hours on the tedious tasks of payroll management, accompanied by the nerve-wracking year-end tax preparations. 

However, imagine a scenario where this relentless commitment to payroll becomes a thing of the past, replaced by seamless payroll software that requires only a few clicks.  

According to recent industry reports, businesses utilizing modern payroll software can save up to 40% of the time typically spent on payroll processing.

So enter the HR and automated payroll systems world through this blog, where efficiency reigns supreme, and the burden of error is virtually eliminated. 

What is a Payroll Software? 

Payroll Software is an on-premises or cloud-based solution that manages, handles, keeps track of, and automates employee payments.

A payroll system that is robust, integrated, and adequately designed may help businesses of all sizes stay in compliance with tax laws and other financial rules while also lowering costs.

As a result, human resources (HR) teams are liberated from regular duties and have more time for planning, budgeting, and other business-oriented projects.

Why HR needs a Payroll System?

Now, let's discuss the reasons why HR management needs payroll software. Following are the top 6 reasons which are motivating the companies to use it.


  • Time Efficiency Unleashed 

"Payroll is not just about paying people, it's about paying them right, on time, and accurately."

According to Score.org research, businesses typically spend over 80 hours annually on payroll tasks, which could be better used for core organizational needs.

With payroll software, this burden is reduced, allowing HR to focus on more critical tasks. It simplifies complex calculations involving factors like vacation leaves, overtime, and federal taxes.

Otherwise, these can consume two weeks' worth of full-time work for some businesses. So automating and optimizing these processes frees up valuable time and ensures accuracy.

  • Reduce Employee Turnover 

Payroll software plays a significant role in curbing employee turnover by simplifying the tracking of employee schedules, payslips, and critical information.

It offers real-time visibility into your business operations, enabling timely issue detection and ensuring employee satisfaction, ultimately contributing to higher retention rates.
With real-time insights at your fingertips, you can detect and address issues promptly, resulting in a 15% increase in overall employee satisfaction. 

  • Error-Free Payroll 

Research shows that businesses using payroll software instead of manual processing reduce error rates by up to 40%, highlighting its efficacy in payroll processing.

This software provides a centralized repository for employee data and minimizes the need for repetitive data entry. It significantly lowers the risk of errors, including the infamous "misplaced zero."

The payroll system ensures precise calculations and adaptability to various factors such as bonuses, deductions, changing laws, and banking details. So, this ultimately promotes accuracy and efficiency in payroll processing.

  • Maintain Compliance 

Staying compliant is vital for businesses, as breaches can lead to fines and reputational damage. It emphasizes the need for up-to-date documentation in finance and HR departments.

Payroll software plays a vital role in mitigating compliance risks, such as tax penalties and employee rights violations, through process automation and timely notifications to managers regarding required documentation.

A company that maintains continuous compliance is not only more likely to earn consumer trust but also to enhance its brand recognition and reputation.

  • Decreased Complexity of Tax Filing 

“Reducing tax complexity is not about cutting corners; it's about finding smarter solutions”

62% of businesses acknowledge that managing taxes is one of their most significant compliance challenges, highlighting the intricate nature of tax regulations across jurisdictions.

The intricate nature of taxes can result in costly errors for companies. However, a payroll system simplifies the tax filing process, alleviating the burdens associated with tax management.

This software rapidly and accurately computes employee tax withholdings, ensuring compliance with tax deadlines and obligations.

How To Find The Right Payroll System For Your Business?

  • Here's a framework you can utilize to determine the most suitable HR payroll software solution for your organization: 
  • Customized Selection Criteria: Choose HR payroll software based on your business's specific needs rather than just features.
  • Thorough Service Provider Research: Conduct thorough research to identify potential service providers, considering market reports and recommendations.
  • Establishment of an Evaluation Committee: Form an evaluation committee to compare software options against your company's requirements.
  • Creation of a Request for Proposal (RFP): Task the committee with creating a request for proposal (RFP) for HR payroll service providers.
  • Product Demonstration and Assessment: Request product demos from the selected contenders based on RFP responses.Final Software Selection Process: The committee's assessment of these demos will guide the final choice of HR payroll software solution. 

How Much You Will Pay For Payroll Software?  

Numerous factors affect the cost of payroll software. These include your company's size, the number of employees you have, and the features you need.

Software for payroll is accessible to small and large businesses alike. Small firms typically use the most basic payroll software.

There won't be as many features as in the more sophisticated versions. Similarly, larger business corporations will use the premium plan.


Payroll software is an essential tool for HR management and business operations due to its ability to enhance accuracy, efficiency, compliance, and employee satisfaction.

Automating payroll processes and providing valuable insights, empowers HR professionals to focus on strategic tasks while ensuring employees are paid accurately and on time.

Payroll Management With ErisHR Payroll System 

ErisHR One offers a comprehensive solution for payroll management, ensuring precision, punctuality, and efficiency in every transaction. With our user-friendly software, you can eliminate errors, reduce processing time, and enhance overall payroll accuracy.

Benefits of Using the ErisHR Payroll System:

The ErisHR Payroll System offers a range of advantages that can transform your payroll management such as:  

  • Simplified Payroll Processing
  • Enhanced Accuracy and Compliance
  • Time and Cost Savings
  • Comprehensive Reporting and Analytics 

Explore the potential of the ErisHR payroll system through enhancing your salary processes. Visit our website for more information.