Mastering Tax Management: How SkizzleHR Payroll Software Simplifies Tax Calculations?

It’s no secret that in today’s dynamic business landscape, Human Capital Management (HCM) is emerging as a powerful tool to revolutionize the way various organizations manage their resources. However, in recent times a new feather has been added to HRMS, that is the accuracy and ease in calculating and managing taxes for employees. Likewise, SkizzleHR offers payroll software that calculates your employees’ tax and shows them the amount they need to submit. Its tax management feature is so sleek and takes care of all the payroll activities, such as PF, Professional Tax, ESI, and more in compliance with the Indian government’s regulations.

Tax Management

In a fast-paced life, time is money. For businesses efficient in time management, recognizing the value of avoiding manual repetitive tasks is imperative, considering their time is a precious resource. These companies want to stay away from doing simple and redundant or going through the same HR tasks over time. Businesses investing in a Human Capital Management (HCM) that offers tax management can quickly and efficiently automate these laborious and time-consuming tasks and free up their HR resources. Their HR department can work on more significant and strategic aspects to offer more value to businesses. 

Understandably, to build a successful firm, one must be cost-effective and efficient to garner profits. However, business growth becomes unattainable when HRs have to handle all the work through Excel sheets. They may encounter various roadblocks, such as managing all the paperwork, calculating salaries, tax deductions, and more. On certain conditions, the HR department’s functions also get delayed, thus, making it imperative to adopt a digital mode to manage all the HR tasks, especially payroll. The infusion of digital technology into Human Resource Management has given rise to a distinct and invigorating sphere of work. The salient feature of many HCM is tax management. 

HCMs that have tax management in their system can easily manage their employee’s payroll. Because it is understandable that payroll is a far broader subject and includes various activities, as a part of employee compensation management. The re-imagined HCM helps manage critical tasks effectively, such as salary credits, salary deductions, leave encashments, and many more. The modern tool can streamline these processes and reduce the chances of human errors and malpractices while computing the in-hand salary of each employee. Besides, having payroll management enables companies to roll out the salaries to all employees of the companies across pan India. 

Benefits of using HCM with Tax Management

Using Human Capital Management (HCM) software integrated with Tax Management can provide several significant benefits for organizations. This integration brings together two critical aspects of workforce management and financial compliance, resulting in streamlined processes, improved accuracy, and enhanced decision-making. Here are some benefits of using HCM with Tax Management:

1. Can be Integrated with Other HRMS Modules

Tax management can be seamlessly integrated into HCM and Employee Self-Service. The system integration ensures the data stored by the employees is protected and their salaries, investment declaration, deductions, and non-regular allowances. This information when entered once is used by the HCM and can be easily updated by employees and managers anytime and anywhere. 

Upon complete integration of tax management with other HRMS tools, your employees gain the ability to accurately strategize their taxes throughout the fiscal year.

2. Offers Savings Projections

Employees can see their savings estimates after declaring their investments and see which income tax regime offers more benefits. The payroll software with a tax management system calculates TDS for the remaining year and shows the deductions in the salary slip. 

Through salary slips, employees can get their income taxes and also plug in various projections to save taxes, such as insurance, bonds, and more that are approved by the government and view the impact on tax liability.

3. Generates Form 16

Form 16 is a crucial part oftax management, as it shows all the employers’ contributions to the employee and the tax they have deducted from the salary. The form generation process is simplified through the utilization of payroll, tax, and exemption data present within the suite.

Conclusion

In the blog, we have summed up why using HCM solutions can help companies and employees contribute to business growth. SkizzleHR offers payroll software with a tax management feature that makes it easier for organizations and workforces to calculate their taxes and view their salary through a dashboard. This unified dashboard can help in planning better savings and paying taxes with minimal errors. 

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