Four benefits of integrating your online payroll system with HR software

  • Last Updated : August 23, 2023
  • 3 Min Read
Benefits of integrating online payroll system with HR software

It would be a mistake to separate payroll processing from the realm of HR and consider it an independent function. Some organizations do have a separate payroll team to manage their payroll operations, but these teams work closely with HR to make sure they use accurate data for payroll processing. With remote and hybrid working models becoming more popular, many organizations are moving towards cloud-based HR technology to simplify and automate their HR operations. That said, using two different tools to manage payroll and HR functions can do more harm than good. You and your team will likely end up inputting the same data in multiple places, increasing unnecessary work. That's why it's best to go for an integrated payroll and HR system.

Here are four reasons why every organization should integrate their HR and payroll systems:

  1. Avoids needless work

An integrated payroll and HR system can save your organization from populating different systems with the same information. Because these systems work together, you don't have to add employees to the payroll system separately, as user profiles are synced automatically from your HR software. If an employee is removed from the HR platform, their profile is automatically deleted from payroll too. All the information required for payroll processing, along with employee contact details and designation is pulled directly from the HR software. Plus, whenever employees receive salary hikes and bonuses during performance reviews, the same information will be reflected in the payroll system.

  1. Eases payroll processing

Payroll processing becomes a breeze when both the payroll and HR systems are integrated. Without the integration, payroll teams may have to contact HR departments every month to receive attendance and payroll data for payroll calculation. There may be delays in this process if there are any lapses in communication. Because the data is collected and entered manually, it may be prone to errors. With a smooth integration, these bottlenecks can be avoided completely. As employees mark their attendance, track their working hours, and apply for leave through the HR software, all the information about their working hours will be made readily available as reports in the payroll system. Payroll officials can then easily access these reports.

  1. Improves employee experience

Employees don't want to log in and out of multiple systems to complete their HR paperwork. It's much more convenient to use a single, centralized system. With integrated payroll and HR software, your employees can refer to their payroll-related information, including pay slips, tax deductions, and reimbursements, right from the self-service portal. They can also be permitted to edit and update their personal information independently without having to send emails to payroll and HR teams.

  1. Streamlines compliance

Because data transfers between the payroll system and HR software are automated, the chances for payroll errors are almost nil. Most HR software options provide insightful reports that show attendance, leave, and timesheet data required for payroll calculation. To help organizations adhere to state and national labor laws, HR system vendors are constantly updating their systems. In addition to this, payroll records required for audits can be centralized and accessed easily, including from mobile phones.

Using an integrated HR and payroll system

An integrated HR and payroll system can make payroll processing cohesive and organized. Plus, it can help you and your employees save a significant amount of time. We hope this blog gave you a better idea of how an integrated HR and payroll system can benefit your organization.

Zoho People, our comprehensive HR management software, integrates seamlessly with Zoho Payroll, our payroll management software. Zoho People and Zoho Payroll work together to cut down repetitive tasks and make payroll processing as smooth as possible. Learn more about this integration 

Also Read:How to set up payroll operations online?


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  • tarika

    Content Specialist at Zoho People

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