Payroll Software Systems

Payroll issues can have a serious impact on employee morale, company image, and compliance. Payroll is an essential component of the business for any company that has employees, but can be quite taxing if a great system isn’t in place for processing it. HRIS software can make payroll much easier and faster to process, while helping to counter many common payroll issues before they become problems.

Entry Errors and Employee Errors

When using a manual system, it’s easy to make simple entry errors that can cost your company or your employees money, time, and peace of mind. Even if an entry or punch time error is the fault of an employee, the burden is on your company to identify and correct the error before it affects his or her paycheck.

Using an HRIS for time and attendance tracking and exporting or funneling that data into payroll can help to prevent entry errors. HRIS solutions also generally come equipped with alerts that will let you know if there are potential payroll errors based on red flags like an unusually high or low number of hours for an employee.

Bank Closures

Bank closures due to holidays and events can disrupt the payroll schedule. If you are doing payroll manually and you forget about an upcoming holiday, it can cause frustrating delays for your employees. HR software will alert you to upcoming holidays and will often make adjustments so that paychecks are distributed earlier, rather than later because of the bank closure.


States have different laws regarding employee terminations and pay. An HRIS can help to keep you up to date and compliant. With a few clicks, you can ensure that the employee is paid within the legal time limit whether they have voluntarily or involuntarily terminated their employment.

Leaves of Absence

Leaves of absence can become confusing. HRIS can provide information about FMLA leave and any other applicable considerations that can help you to pay your employee properly every time. This can reduce the amount of time it takes you to calculate the leave, while also helping you to comply with laws regarding the leave.

Changes in Pay

Promotions and pay raises are exciting for employees, but can become frustrating if they aren’t processed quickly after notification has been given of the pay change. Working with a third party payroll vendor can cause delays in pay raises that force you to calculate and distribute retro pay, to the dissatisfaction of you and your employee. An HRIS can be instrumental in implementing payroll changes quickly.

Absences and PTO

Absences and PTO are common occurrences that can throw a monkey wrench in a manual payroll system. Whether employees are hourly or salaried, it can be difficult to keep up with PTO or to calculate pay when unpaid absences occur in a pay period. An HRIS can automatically keep track of PTO for you and can figure out correct pay for weeks with unpaid absences based on rules that you enter into the system.

By optimizing payroll, you work to ensure that your employees are compensated fairly and on time, every time. This can help you maintain employee contentment, reducing turnover and improving your brand image.