You’re probably puzzled by now, a customizable payroll system? There is no mistake in that, that is possible. And there are existing payroll management solutions that offer that kind of product like Vitruv Technologies’ AriaHR Suite.
If you’re still puzzled, this is how it works. Payroll system vendors like Vitruv Tech already developed a standardized payroll system. Meaning, all basic necessities to process payroll is already up and functional. But their standard system might not work for your company. Some modules may be irrelevant, while some other functions required by your company may not be available. This is where the customization comes in. You have to discuss all your company’s peculiarity for the developer to see whether or not it is possible to integrate into the system.
But customization may scare you because of the additional fee you’d have to pay. But there really isn’t much to worry about. Some payroll system developers charge very little to none when it comes to customization. Take Vitruv Tech for example. If they see that the customization is beneficial not only to your company but to future clients as well, they might do it for you without the additional charge.
Do I really need the customization?
That actually depends on your company’s rules and processes. But a standard version of a payroll system might not be efficient enough to meet your company’s requirement. Yes, the basic modules are there but is it really enough? But the price might scare you a little bit. To get rid of that uneasy feeling, remind yourself that your going to purchase a payroll software anyway so might as well get one that perfectly fits your needs.
To help you canvass for the right payroll system, here are some features that can be put into consideration especially when it comes to customization:
There is no such thing as a universal payroll calculation. At some point or another, each company has their own peculiarity. How you deduct lates from your employees might be one example. Some companies don’t really deduct late time in’s. While other are very strict with it. To explain it further, let’s take the grace period system as an example. You could configure the system to give different grace periods for your employees. For example, you give your Rank & File employees 15 minutes grace period, while managers and heads get 30 minutes, and the executives can come in any time of the without being deducted. Once you indicated an employee position in the company, the payroll system computes deductions accordingly.
This is connected to the calculations. Depending on the nature of your business, the schedules of your employees may vary. Some companies follow a 9-hour work day with lunch break included. While some based their work day on productivity and not on the number of hours rendered. There are also companies who follow a flexi time type of schedule. In this situation, you can have a choice of requiring 40 hours a week from your employees as an example; the employees will then have the choice of whether working 8 hours a day or rendering 12 hours of work in one day. The only important thing is that they render the 40 hours within the week. A complex payroll system can be customized to have the capability to process such scheduling.
Allowances and Other Additional Pay
You could also customize the allowance that each employee gets. Allowances may be given on a weekly, semi-monthly, or monthly basis. You could set a specific allowance, holiday pay, commissions, and food or transportation allowance for each employee. You can categorize this by their position, their tenure with the company, or by their performance.
Not all payroll systems offer this feature. So it is a big plus if the system is already capable of processing the payslips. In this matter, you can configure whether or not the employee has a direct access to his own payslips or if it can only be accessed upon approval.
This is a module where all employees can file their leaves. But filed leaves needs approval. This is where the configuration comes in. You could customize the system in such a way that you can hand pick the leaves approver. And this is not just a question of who is it gonna be, you can also indicate how many approvers can approve or deny the request.
Whenever an employee files a leave or overtime, the payroll system would not include it in the calculation without it being approved first. And you could actually customize the process of approval. You can choose more than one approver to oversee all requests or you could assign different approvers for different departments. There’s also this thing called the hierarchy of approval. In this case, you could hand pick specific people to approve requests for each department, then top executives may review them before finalizing approval. To give you a better understanding of it, here’s the usual flow: when an employee files a leave, the team leader approves it. Then it goes to the manager then to the finance department for final approval. If one of the approvers denies the request, then the payroll system won’t calculate it.
If the payroll system is capable of collating all the data stored, then it can make reports for you. You can customize the reports that you’d require in the system. The simplest form of reports are the ones that have a direct connection with the disbursement. An example for this is that you can require the payroll system to create a report on the government-mandated deductions every time it processes a payroll. It is easier to have this done along with the payroll so that your records can be kept updated.
Another report commonly requested by companies is the employee’s time records. In one report, you could require the system to tell you how many employees came in late for a certain day. If for example you see that most employees are late on Mondays, then you could adjust your policies accordingly. And you could require the system to create a report regarding every single employee’s performance. This can come handy when an employee is a candidate for a salary raise or for a promotion.
Of course, not all data should be accessible to everyone. You can configure the payroll system in a way that each user will have their specific access to data and modules. Rank and File employees will only have access to their own information, managers can access their team’s data, while the Human Resource department will be the only one to have access in the Human Resource module. In this case, executives will then have a super-user access in the system. Meaning, they can access all modules and can view all the employee’s information.
And there are a lot more ways to customize a payroll system. Those mentioned above are just a few things that you can put into consideration. When looking for the perfect payroll system that fits your company, the best ones are the ones you can mold yourself.Want to try personalizing your own payroll system? Vitruv Technologies got you covered! Check out Aria HR Suite and let us help you turn your dream payroll system into reality. Book a demo here: vitruvtech.com/book-demo