Payroll management is a vital element in the business world, whether you’re a startup, a corporate entity, or an outsourced payroll service provider. In the digital age, payroll software simplifies these complex tasks, but not all solutions are equal. Does your payroll software generate these 7 essential payroll files? In this article, we’ll explore their significance, practical benefits, and the impact of your software choice. Join us to prioritize these essential files in your payroll software selection. Discover how, with solutions like Humanised Payroll, customers have reduced their payroll processing time by over 50% compared to manual methods.
1. Bank Transfer File for Salary transfer
Using Bank transfer files generated on text files are not news to many payrollers in Sri Lanka. Infact, you have been using the excel based bank file generators provided by your bank for several years now.
But what If I told you your payroll software could generate this whole file for you, just like you would if you were to manually copy paste or file the entire excel generator by hand. There are plenty of software in the market like Humsnied Payroll that eleminates the manual preparation of banks transfer files for salary transfers.
Needless to say, this reduces the risk of human errors resulting from manual work
2. EPF transfer files
3. ETF transfer files
Transferring the EPF and ETF amounts to the fund is one of the most critical tasks in the payroll process. You are required to not only calcuate EPF & ETF dues correctly but also transfer the amounts to the fund within 15 days of the end of the month.
Just like with Bank transfer files, you might already be familiar with excel based generators but this too can be automated.
Humanised Payroll generates the exactly compatible text file you can simply upload to your bank’s portal.
Payrollers around the island typically tend to disagree on what should and should not be displayed on a payslip but they do agree on one point, the fact that the payslip is of the utmost importance in the payroll process.
It is a legal requirement to produce a payslip to the employee and for the payslip to be as informative as possible for the employee.
Make sure that your payroll software can produce a payslip that satisfies and exceeds the business and employee’s needs every month. Humanised Payroll have made several payslip customizations available at your fingertips.
Paysheet is a document where you can review the completed payrun at a glance. This is typically prepared on an excel sheet and some payrollers like to keep printed recorded of salary sheets as the months progress. Paysheet is also requested to be produced by government entities during labour issues.
Therefore, it’ll be a good idea to check if your payroll software generates a paysheet and keeps a record of all the paysheets generated so you don’t have to get back to crunching numbers when you need to produce some historic paysheets.
6. Payroll summary/ Salary journal
It is critical to get a summary of the payrun at completion for purposes like journal entries. This document gives you a wholistic view into the total amount of payroll expenses under each category. Most critically it can tell you what the total cost to the company was and how did it come together.
This too typically come in an excel sheet and can be printed
7. Payroll Reconciliation report
Payroll reconciliation report is most commonly used by payroller who have to process payrolls for upwards of 50 odd employees. It is used to make sure the payrun has been calculated accurately. The report does this by stacking all the negative and positive changes that occurred in the current month’s payrun against the last month’s payrun. If the variance is zero, the current payrun is accurate.
This report also allows you to keep track of the major changes that affected your payrun from month to month. Positive changes being places where more money was added to the compensation strcture either as increments, on account of new employees or even new pay items. Negative changes will be instances like company loans, no pays etc.
Humanised Payroll generates payroll reconciliation reports on both individual and organizational levels
In conclusion, the significance of payroll management cannot be overstated, whether you operate a startup, a corporate entity, or offer outsourced payroll services. This article has explored the critical importance of seven essential payroll files and the impact of your software choice. For an efficient and error-free payroll process, consider solutions like Humanised Payroll, where customers have experienced a remarkable 50% reduction in processing time compared to manual methods. From bank transfer files to payslips, paysheets, payroll summaries, and reconciliation reports, investing in the right payroll software can streamline your operations, enhance compliance, and lead to smoother payroll processing. Make the smart choice for your payroll needs, and reap the benefits of modern, efficient payroll management.