Financial security is the reason why people choose to work in an organization. An employee may need additional support in terms of finance. Sometimes, it is just to meet an unforeseen expense, and at others, they deserve the additional remuneration for performing exceptionally. The money that is taken from organization as an advance or before the payday is regarded as loan. And the monetary appreciation for the exceptional performance is called bonus. Here is how HR software can help in managing these.
- Schedule the variable pay: Some profiles earn salary which has basic and variable component. The software allows the user to schedule these salary components. Not only the components can be scheduled, but also the salary can be paid in parts depending upon the performance of the employees.
- Manage adhoc payments: There are instances where the arrears from the previous years during the term of employment are accrued. These sudden payables can be calculated correctly and payment is recorded too with no exception in the software. Depending upon the performance, the bonus accumulation can also be disbursed with no errors using help of payroll computing software.
- Accounting loan installment made easy: Some organizations may choose to loan out a certain amount to the employees to bail the latter out of any difficult situation. This amount needs to be reimbursed by the employees. To regulate the EMI repayment pattern, the software does all the computing part and sends the alerts regarding due date too.
- Calculation of interest rate: Neither under-repayment or over-repayment is acceptable when the matter is that of helping the employee with loan. The automated interest calculator embedded in payroll software allows the HR department to keep track of interest liability of the employees and helps them raise alerts on time.
So, adopt an employee-friendly way of managing loans, advances and bonuses by installing software for payroll calculation and make these transactions error-free.