Understanding HRIS Payroll Systems: A Complete Guide

This guide is an introduction to HRIS Payroll Systems covering the essentials.

What do you need to do to ensure that your payroll is accurate and efficient today, in our fast-paced, go-get-it business environment. The answer is simple and complicated at the same time – Human Resource Information Systems (HRIS).

Today, I think HRIS is essential for streamlining payroll processes. However, to do so, it needs to be properly integrated, and your HR and payroll processes need to be in perfect alignment. But what exactly is an HRIS payroll system, and how would it look in your business?

In this guide, I will explore everything you need to know about HRIS payroll systems, from their key features to how they can boost your payroll management and take your business to the next level.

What is an HRIS Payroll System?

A boring definition: HRIS stands for Human Resources Information System, a software platform helping companies streamline and automate essential HR functions. It enables businesses to efficiently manage tasks like payroll, benefits administration, T&A tracking while securing safe storage of employee data, including personal details and compensation records.

But in business applications, the HRIS payroll system ensures that your HR and Finance/Payroll teams spend less time on tasks that repeat from one pay cycle to another and that the employee payment data is pure and accurate.

Which means the main benefit of HRIS payroll systems is that they allow companies to focus on payroll, ensuring that employee compensation is calculated accurately, deductions are applied correctly, and payments are made on time.

Why HRIS is Crucial for Payroll Management

Managing payroll manually will (not just can; it absolutely will) lead to errors, inefficiencies, and non-compliance with local laws. An HRIS payroll system automates these processes, reducing the risk of mistakes and freeing up days' worth of valuable time for HRs, CFOs, and People teams (or whatever you call the department responsible for it). This software ensures that all payroll tasks, from calculating wages to generating pay stubs, are handled efficiently.

How Does HRIS Payroll Software Work?

HRIS payroll systems work by integrating payroll with other HR functions, which allows handling and reporting on employee data seamlessly on a unified platform. For example, an HR specialist onboards a new hire, adding signed contracts and policies to the HRIS payroll system, and further the payroll specialist can access the agreed pay terms for the employee.

Here’s what an HRIS Payroll system does in detail:

1. Integrate employee data: All employee information, including hours worked (or timesheets), salary, benefits, and tax, is stored within the HRIS. This ensures that payroll calculations are based on up-to-date and accurate data. Sounds easy, but doing it is actually the most difficult part. Always ask about data integration and migration, when talking with HRIS Payroll provider.

2. Automate payroll processes: The system automates payroll processes such as wage calculations, deductions, and tax withholdings, minimizing the potential for human error. This one depends on the accuracy of your data and clarity of your internal processes. If you don't have clear and defined processes – then they can't be digitized. Hence they can't be automated. Make sure that you know and can explain how salaries and deductions are calculated. If you can't do it right – HRIS can't do it either.

3. Manage compliance documents: HRIS payroll systems are designed to comply with local, state, and federal payroll regulations. This includes generating reports that meet statutory requirements and submitting withholdings on time. Knowing your jurisdiction is key. If you don't, then the IRS or your country's tax authority will be looking for you in no time.
4. Enable payroll reporting: HRIS payroll systems generate detailed payroll reports, providing insights into labor costs, tax obligations, and other payroll-related metrics. These reports are essential for making informed business decisions.

Key Features of HRIS Payroll Systems

When choosing from a list of HRIS payroll systems, it’s essential to know what they can and can't do. Here is a quick, no-brainer, absolutely must-have list:

• Payroll Processing

At its core, an HRIS payroll system should efficiently process payroll, including the calculation of gross pay, deductions, and net pay. Check if your system can handle different pay cycles, such as weekly, bi-weekly, or monthly. If you want to learn how you change the payroll frequency and don't break your processes, you can check our article.

• Compliance and Tax Management

Compliance and taxes are actually one of those things that you don't need right away. Yes, compliance with local labor laws and tax regulations is important. But outsourcing any legal compliance to the HRIS payroll system is scary. If the system can do calculations and remitting payroll taxes and generate tax forms like W-2s and 1099s – GOOD! If it can't – that's not the end of the world.

PLUS! If you operate globally across multiple jurisdictions – good luck finding a software that can handle compliance and not be overpriced. Compliance is a luxury, usually reserved for enterprise-level companies.

• Employee Self-Service Portals

Employee self-service portal is a must! Don't ever consider a payroll solution that doesn't have one. Allowing employees to view their pay stubs, update their personal information, and manage their benefits online is cool. This feature enhances employee satisfaction and reduces the workload for HR teams.

This feature alone will eliminate 50% of salary-related requests and issues during the pay cycle. So much time is wasted answering the same question:" Why is my salary like this? "I thought..."

Enough – let them have access to their pay stubs. This way, they will only write a request when there is an actual mistake.

• Integration with Other HR Functions

Do you want accurate timesheets that are processed automatically by payroll? Then you will need to integrate the HRIS payroll system with other HR functions, such as time and attendance tracking, benefits administration, and performance management.

Some HRIS Payroll software, and the Juggl platform in particular, have its own time and attendance and benefits management features – which is a big plus. If your system doesn't have it, invest time in integration. Lucky for you, there is Zapier.

• Reporting and Analytics

Any HRIS payroll system must have robust reporting capabilities. The system should provide detailed payroll reports, including labor costs, tax liabilities, and compliance status. Advanced analytics can help businesses identify trends and make data-driven decisions. Your data is a resource and you need to make the most of it.

Choosing the Best HRIS Payroll System for Your Business

Finding the right HRIS payroll system can be challenging, especially with many available options. Here are some tips to help you choose the best system for your business:

Step 1. Assess your business needs (the obvious one).

Before selecting an HRIS payroll system, assess your business needs. Consider the size of your organization, the complexity of your payroll processes, and your budget.

Just like we discussed, do you really need local compliance? Do you operate or plan to expand globally? Do you already use T&A or other systems?

Answers to those questions will help you make an informed decision.

Step 2. Evaluate system features.

Compare what features different HRIS payroll systems provide. Ensure that the system of your choice offers essential features like automated payroll processing, compliance management, and robust reporting capabilities.

Step 3. Pay attention to user experience – UI is key.

Keep in mind, your team is going to have to use it daily. Everyone in your organization will be forced to use it. Do you want them to suffer? The user experience is crucial when selecting an HRIS payroll system. Look for a system that is intuitive and easy to use for HR staff and all team members.

Step 4. Check for integration capabilities.

Ensure that your HRIS payroll system can integrate with your existing HR and financial systems. Seamless integration is critical to avoiding data silos and ensuring that all your HR processes are connected.

Step 5. Request a Demo or free trial.

Before making a final decision, request a demo or a free trial of the HRIS payroll system. This will give you hands-on experience with the software and help you determine if it meets your needs.

Unlock the Benefits of HRIS Payroll Software

HRIS payroll systems are an invaluable tool for businesses of all sizes. These systems automate payroll processes, help ensure compliance, and provide valuable insights through reporting. Thanks to such software, companies will save time, reduce errors, and enhance overall payroll management. With the right HRIS payroll system in place, you can streamline payroll processes and focus on what truly matters – growing your business. Got you interested? Let’s discuss how we can help!