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    HR tech | 6 min read

    Your guide to HRMS payroll software

    An HRMS software solution is an HR software that helps companies manage various HR functions with the help of information technology. This software’s main aim is to improve a business’s overall efficiency and productivity by automating certain repetitive and manual tasks, freeing up time for human resource teams, and allowing them to focus on more pertinent tasks. The added bandwidth can come in handy for addressing business critical and strategic tasks in the HR management function.

    A typical cloud-based HRMS software takes care of every HRIS element and also offers human capital management system capabilities. The two main characteristics of online HRMS software include time and labor management and payroll.

    What is an HRMS Payroll Software

    An HRMS payroll software’s main function is to calculate salaries, withhold the right amount of deductions and taxes and take care of printing the paychecks and delivering them. If you optimize an HRMS program for your business, you can greatly cut down on the time and manual workload needed to carry out numerous tasks. Some HRMS applications also have web-based SAAS features, which can come in quite handy for managing an organization's HR duties effectively.

    If you have to choose between an HRMS with payroll features or a payroll-based ERP system, you must consider a few factors, advantages, and disadvantages.

    What Makes HRMS Payroll Software Different from other Systems

    An HRMS payroll solution offers clear advantages. Here are some of the main ones:

    • Straightforward access to reward and compensation data
    • In most cases, HRMS payroll software doesn’t require too much data input. This is particularly true if the system already has the information you are looking for. You simply have to set the software up to access it
    • It can reduce overheads and staffing time to a great extent
    • The solution makes sure that businesses do not have to rely on spreadsheets, files, and databases

    The HRMS software solution you choose greatly depends on your organization’s needs. However, there are certain factors that will influence your decision.

    User Experience

    UX is a vital part of any software. Can it process information in a quick and timely manner? Is it easy to use? Can it be updated seamlessly? Do they offer convenience to users? These are the things you need to consider when making your decision.


    Whether your payroll is part of a separate module or a standalone HRMS, it requires access to the right data to operate properly. This means integration, be it through easy access to the data present in sister systems or a part of a singular package. What’s more important to straightforward access to data is that the system should be able to follow through on certain actions or events.
    For instance, booking someone to a training event would take them off their work schedule automatically and also take care of consequences related to pay.

    Advantages and Disadvantages of an HRMS Payroll Software

    An online HRMS software for payroll offers more advantages than disadvantages. Let us discuss some of them:



    When a business’ entire data is in the same system and all of the bank accounts, names, numbers, staffing details, etc are up to date, there is a significant reduction in payroll-related errors. A common payroll error that companies encounter is the possibility of under or overpayment. The presence of HRMS payroll software can help organizations steer clear of such issues.

    Secure Data

    Payroll records usually contain a lot of sensitive information, which includes things like salary figures, bank account details, social security numbers, and whatnot. Keeping this data in a safe, secure location minimizes the risk of data loss or security breaches.


    Another advantage of cloud-based HRMS software is its improved regulatory and legislative compliance. The right human resource management system can also help companies comply with labor law changes, ensuring they can steer clear of scrutiny-related troubles.

    Accurate Data

    Merely integrating HRMS software for payrolls can significantly reduce errors. The lesser the errors, the more time staff members will spend focusing on pertinent tasks instead of taking care of those errors. The right cloud-based HRMS system can also greatly reduce the chances of deliberate errors. Since the system is in charge of the administration of attendance, timesheets, etc, it can maintain accurate records, minimizing the chances of fraud, theft, and whatnot.

    Single Portal Access

    Accessing HR related systems from the same point significantly improves user experience. Whether it is an employee who wants to check their salary or a higher-up who wants data and figures for their next board meeting, an HRMS payroll software offers easy information access to anyone in an organization, which saves time and offers a great deal of convenience.

    Productivity Boost


    HRMS software can be massive productivity boosters for employees, managers and HR staff. In today’s disruptive and fiercely competitive work environment, workers should be spending most of their time on valuable tasks instead of repetitive ones. Adopting digitization and automation in the form of an HRMS payroll software can help boost productivity, helping employees focus on activities that generate profit.

    Up to Date Data

    The accuracy of HRMS databases makes it a worthy option for almost any organization. With personnel file management becoming more demanding than ever, it is important to have accurate automated solutions. A reliable HRMS software can maintain employee records, keeping them up to date and reduce various administrative burdens faced by human resource departments.


    The Cost to Set up May be High

    While there is no denying that integrating a cloud based HRMS software is usually a great thing and helps businesses save long term costs, making the shift can be slightly expensive. For instance, getting a new system usually means providing staff members in-depth training to ensure they can use it properly. Similar to incorporating most technologies, it is important to make sure that the investment has a likelihood of paying off.

    Not Every Department May be on Board Initially

    Larger companies often have different departments that handle their payroll. In such cases, there is a high likelihood that each department uses a different payroll system, has different attitudes, priorities and whatnot. Bringing different departments together to ensure they use the same system can initially result in miscommunication, resistance and troubles.

    Becoming Overly Dependent on One thing

    While dealing with a single vendor and system can offer a lot of convenience and is not too complicated, it makes companies quite over reliant. For example, if an HRMS payroll software ends up crashing or facing any other issue, it could affect business continuity.

    It’s clear to see that an online HRMS payroll software offers more advantages than disadvantage, making them ideal for most businesses.

    People Also Ask

    What is HRMS Payroll Software?

    An HRMS payroll system automates an organization’s fundamental administrative tasks. The most important task performed by this software is converting manual filings and tasks to an electronic filing system. A transition like this helps reduce information related errors, leaks and losses.

    Additionally, a payroll software can automate the procedure of paying salaries according to monthly, hourly or monthly basis without any errors. Besides salaries, an HRMS payroll software can also file employee’s taxes, deliver checks, calculate wages complete insurance payment, direct deposit etc.

    Does HRMS Include Payroll?

    While most HRMS are come with payroll management features, some of them do not. So, if you want to improve your company’s HR processes and automate certain payroll related tasks to make them more efficient and accurate, it would be best to get an HRMS software solution that has payroll management features.

    What are the Best HRMS Software?

    While there are plenty of excellent HRMS software out there, mentioned below are some of the best ones for large and small organizations:


    Best system for digitally transforming HR processes

    Sage SRMS

    Ideal human resource management software for small businesses


    Perfect system for time-off management

    HR Cloud

    Best engagement and onboarding HRMS solution

    What are the 3 Top HRIS Systems?

    UKG Pro

    UKG pro is an all in one, fully configurable payroll, talent management and HR system. Previously known as Ulti Pro, UKG pro can handle millions of employee records present in its cloud accounts.

    UKG Ready

    UKG ready is an excellent brand that has been around for a long time. Previously known as Kronos Workforce Ready, this cloud based HRMS software can take care of payroll management, onboarding, recruiting, compensation planning, performance management, attendance, time, absence management, scheduling and other important tasks performed by HR departments.

    Bamboo HR

    Bamboo HR is a highly reputable vendor that specializes in mid to small sized businesses. This online HRMS software has multiple currency and language options and can automate several payroll and HR related tasks. This system can be especially ideal for organizations that operate globally.

    Final Thoughts

    An HRMS payroll software can work wonders for big and small businesses and help them become highly efficient. The right system can automate a variety of payroll and HR related tasks, allowing staff members to focus their energy on other important tasks. Before incorporating an HRMS software, however, make sure that it has a high likelihood of benefitting your organization to ensure your investment is worth it.

    Learn More About HRMS: 


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