What features should a good payroll system have?

Managing payroll can be a complicated and challenging task for any business, from small businesses to large corporations. However, doing this process correctly is crucial to Maintain satisfaction and commitment of employees, but above all to comply with tax and legal obligations.

In that sense, a good payroll system is the most suitable tool to facilitate these tasks, as it ensures accuracy and efficiency in all processes related to the calculation and payment of salaries and benefits. But how do you find the best option? Below we detail some of the most common ones: essential functionalities that you should look for in a program.

Accurate calculation of salaries and benefits

One of the most important aspects of payroll software is its ability to accurately calculate employee wages and benefits. This includes:

• Control of perceptions and deductions: A good system should allow the management of various perceptions and deductions, in accordance with the legislation, allowing the definition of specific formulas to determine the amounts to be paid and taxable and exempt parts.
• Determination of SDI: Record of fixed or variable earnings for a correct calculation of the Integrated Daily Salary (SDI) and, based on this, calculate the employer contributions.
• Task automation: For example, to have the ability to automatically generate RFC and CURP homoclaves, calculate settlements and liquidations, and schedule periodic movements such as loans or deductions.

it’s possibleperform the calculation of profits (PTU)) in a simple way, by using a calculator, in accordance with the provisions of the Federal Labor Law and considering the maximum amount allowed under the legislation.

Tax management, withholdings and contributions

Tax and withholding management is essential to comply with tax regulations and avoid penalties. Key features include:

• Calculations of ISR, IMSS contributions, payment of credits: display and breakdown of these calculations on payroll receipts.
• Interaction with IMSS and AFORE: Generation of movement files for IMSS and AFORE payments, and calculation of the risk premium.
• Tax reports: Generation of files for the mass registration of workers to the RFC and annual ISR calculation report.
• Calculation of employment subsidyaccording to the application for 2024, to guarantee the new fixed quota.

Payroll CFDI generation 4.0

For effective management and tax compliance, the generation of Digital Tax Receipts via the Internet (CFDI), with all the requirements established by the authorities, is essential:

• Generate payroll CFDIwith the requirements requested by the authorities; as well as the inclusion of the Payroll Supplement.
• Load information from the SAT Tax Status Certificateto record correct worker information.
• Automated letterhead to ensure the full validity of the receipts, whether in bulk or individually.
• Ability to cancel vouchersbased on the new procedures established by the authorities.
• Option of download, in bulkthe payroll CFDI, to carry out internal reconciliation.
• Automatic sending of payroll receipts to employees by email for tax compliance.

Detailed and customized reports

One of the very useful functions when using specialized software is its ability to generate customized reportsand the ability to customize queries, according to the needs of the company. It is possible to obtain statistics such as:

• Total payable, based on active workers.
• Subtotal by different concepts such as department, budget, among others.
• Group information by worker, period or concept.

Integration with other business management systems

An efficient payroll system must be integrated with other business management systems to facilitate administration and ensure consistent information:

• Interoperability: Ability to send and receive information from other business systems such as accounting and administrative software.
• For example, the program NOI by Siigo Aspelhas the ability to connect with the COI accounting system, and the SAE and ADM administrative systems, among others of the same brand.
• Connection to banking portals: to carry out the payroll dispersion to workers in a timely manner.
• Data export: Tools to export payroll information to other formats, so that it can be used according to the company’s needs.

Security of the information

Protecting employees’ personal and financial data is paramount. A good payroll system should include:

• Total payroll closure
• Freezing of payroll receipt
• Managing user profiles
• Automatic backups in the cloud

Easy to use

Finally, a payroll system should be easy for administrators to use, through an intuitive user experience:

• Friendly interface: Visual boards with graphic indicators of active workers, total to be paid and electronic receipts of the current payroll.
• Automation and assistance: Tools like a smart search bar and automatic notifications for pending receipts.

Remember that the simpler it is the implementation of the payroll system for your processes, you will be able to observe the Advantages of its use in a shorter period.

Conclusion

Selecting a good payroll system is vital for the Effective management of human talent and compliance of tax and labor obligations.

A complete software must offer advanced functionalities for the Accurate salary calculation, tax management and withholdingsgeneration of tax reports, integration with other business systems, information security and ease of use. This is in order to ensure efficient and precise administration, in favor of the overall success of the company.

(I.S.)

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