Payroll software in India typically offers a range of key features and functionalities to simplify and automate the payroll process. Here are some of the common features found in cloud –based payroll software used in India:

1. What are the key features and functionalities offered by payroll software India?
Payroll management software is a great innovation that has been around for a while and has
helped organizations and HR teams to function far more efficiently than the traditional paper-
based payroll process. Payroll software however, need to have the below mentioned features
to be the best-in-class solution.
Payroll software in India typically offers a range of key features and functionalities to simplify
and automate the payroll process. Here are some of the common features found in cloud –
based payroll software used in India:
1. Employee Information Management: Payroll software allows you to maintain a
centralized database of employee information, including personal details, employment
history, salary structures, and tax-related information.
2. Salary Calculation: The software automates salary calculations based on predefined
formulas, taking into account various components such as basic salary, allowances,
deductions, overtime, incentives, bonuses, and statutory requirements like provident
fund (PF), professional tax, and income tax.
3. Statutory Compliance: Payroll software ensures compliance with various statutory
requirements imposed by the Indian government, such as income tax calculations, tax
deduction at source (TDS), provident fund (PF), Employees' State Insurance (ESI),
professional tax, and labor welfare fund.
4. Attendance and Leave Management: Payroll software in India often integrates with
attendance and leave management systems to track employee attendance, leave
balances, and calculate attendance-based salary components. It helps in managing leave
requests, approvals, and tracking employee attendance data.
5. Taxation and TDS Management: The software automates the calculation and deduction
of income tax and other applicable taxes from employees' salaries. It generates tax
reports, Form 16s, and facilitates electronic filing of tax returns.
6. Reimbursement Management: Payroll software enables the management of employee
reimbursements, such as travel expenses, medical allowances, and other
reimbursements. It automates the calculation and processing of reimbursements based
on predefined rules and limits.
7. Pay Slip Generation: The software generates pay slips for employees, which provide a
detailed breakdown of their salary components, deductions, and net pay. These pay
slips can be either printed or shared electronically.

2. 8. Reporting and Analytics: Payroll software offers various reports and analytics to provide
insights into salary expenses, tax liabilities, employee costs, and other payroll-related
metrics. It helps in monitoring and analyzing payroll data for decision-making and
compliance purposes.
9. Integration with Accounting Systems: Payroll software can integrate with accounting
systems or financial management software to automate the transfer of salary and
related financial data, ensuring accurate financial reporting.
It's important to note that the specific features and functionalities can vary among different
payroll software providers. Organizations can choose the software that best aligns with their
requirements and complies with Indian labor laws and tax regulations.
HR365, a cloud-based software:
As HR365 is a cloud-based software, it likely offers additional features and benefits due to its
cloud-based nature. Here are some key features and functionalities you can expect from HR365
payroll software:
1. Accessibility and Mobility: Being cloud-based, HR365 payroll software allows you to
access and manage payroll information from anywhere, at any time, as long as you have
an internet connection. This provides flexibility and convenience for HR and payroll
professionals.
2. Scalability: Cloud-based payroll software can easily scale up or down based on your
organization's needs. Whether you have a small team or a large workforce, the software
can accommodate the changing size of your payroll requirements.
3. Integration with Other HR Systems: HR365 payroll software may offer integration
capabilities with other HR systems, such as human resource management (HRM)
software, time and attendance systems, or employee self-service portals. This enables
seamless data flow between different HR processes and eliminates the need for manual
data entry.
4. Analytics and Reporting: Cloud-based payroll software often provides advanced
reporting and analytics features. You can generate various payroll reports, track payroll
expenses, analyze labor costs, and gain insights into your organization's payroll trends
and patterns.

3. 5. Compliance Updates: Cloud-based payroll software typically stays up-to-date with the
latest tax laws and regulatory changes. This ensures that your organization remains
compliant with payroll regulations without requiring manual updates.
Distinguishing features of payroll software processing:
HR365 Payroll Management software offers several distinguishing features that make payroll
processing efficient and user-friendly. Here are the key features:
1. One-click payroll processing: HR365 streamlines the payroll process by enabling one-
click payroll processing. This simplifies what was once a complex task and allows users
to complete payroll with just a few clicks.
2. Simplified payroll data management: The software simplifies payroll data management
by facilitating one-shot data upload and exporting data in well-organized spreadsheets.
This feature assists HR personnel in efficiently managing and organizing payroll data.
3. Efficient management of full and final settlements: HR365 helps organizations
effectively handle full and final settlements. This feature identifies employees who have
quit or are serving their notice period and need to be excluded from the monthly payroll
process.
4. Multiple salary structure management: The software supports the management of
multiple salary structures for different employee grades. This functionality ensures
accurate tracking of employee allowances, deductions, taxes, and other components
based on individual salary structures.
5. Integration with biometric devices and attendance monitoring: HR365 integrates with
biometric devices for attendance monitoring, simplifying the collection of attendance
data. Additionally, the employee self-service feature allows employees to manage
attendance and leave requests, making attendance regularization easier.
6. Automatic fail-safe feature for critical payroll data: The payroll software includes an
automatic fail-safe feature that ensures critical payroll data are complete before
proceeding to the next steps in payroll processing. This minimizes the possibility of
errors during payroll execution.
In the Indian market, payroll software should ideally have the following seven features:
1. Time & Attendance Integration: Integration with time, leave, and attendance systems
ensures accurate calculation of paydays and enables timely release of payouts.

4. 2. Payroll Calculations & Accounting: Accurate calculation and release of salaries, along
with seamless payroll accounting, are essential features of a payroll software.
3. Salary Verification & Structure: The software should verify salaries and present a clear
salary break-up for employees to review.
4. One-Click Payroll Processing: The payroll software should enable one-click processes for
salary computation, tax calculation, and pay slip generation.
5. Taxes & Compliance: The software must appropriately assess and file taxes for
employees, while also ensuring compliance with statutory requirements such as EPF,
ESI, and professional taxes.
6. Direct Online Salary Deposit: The payroll software should support direct deposit,
eliminating delays in salary release and post-salary processing issues.
7. Employee Self-Service: An employee self-service feature allows employees to perform
payroll-related tasks independently, reducing their dependence on HR or administrative
staff and enhancing engagement and satisfaction.
In summary, HR365 Payroll Management software offers features such as one-click payroll
processing, simplified data management, efficient full and final settlement management,
multiple salary structure management, integration with biometric devices, and an automatic
fail-safe mechanism. Additionally, in the Indian market context, payroll software should
encompass time and attendance integration, payroll calculations and accounting, salary
verification and structure, one-click payroll processing, tax and compliance management, direct
online salary deposit, and employee self-service capabilities.