InfyNow Software Solution (LLP)

I. Introduction

A payroll system is an accounting method used to process, streamline, and manage

wages paid to employees. It calculates salaries after the deduction of taxes, benefits
payments, track hours worked, issues payments through check or direct deposit and keeps
accurate records of all employees.

Regardless of whether you own a small business or a large enterprise, processing

accurate payroll is an essential function that every organization must perform. Payroll
discrepancies can cost the company not just monetarily but even in terms of employee
retainment.

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II. Types of Payroll System

1. In-house payroll

Like the name suggests the payroll is managed in-house, meaning one/group of
employees within the company take care of processing the payroll. Be it staying updated with
tax laws, or tax filing/withholding etc. every part of payroll is taken care of from within. In
house payroll works best for small businesses.

Benefits of in-house payroll

 Avoids any major discrepancies.

 Cost cutting

 Lower security risks

 Intuitive tools that make the payroll process simpler

2. Cloud based Payroll (Software managed)

An online portal is provided through which you can manage your payroll utilising the
automation tools. From data entry to tracking employee hours, everything can be managed in
cloud. The tools and features are optimised for your payroll so you can keep track of every
data about your employee. Tax filing, reporting and other payroll related services are also
provided on cloud.

Benefits of cloud-based payroll:

 No external equipment or software needs to be purchased

 Automation features and excellent reporting options

 Integrates easily with the accounting software giving a complete solution

 User friendly interface

 Affordable and scalable solutions available

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3. Professional managed by Bookkeepers or CPAs

This type of payroll is outsourced to an external bookkeeper or a certified public

accountant. They are experts when it comes to payroll management, and this is mostly
suitable for growing or larger companies. With a professionally managed payroll system,
your payroll operations are covered without much of your intervention. It gives you time to
focus on other critical business operations. But keep in mind only you are still liable if tax
authorities produce any issues.

Benefits of Bookkeepers/CPA payroll:

 Best for medium sized businesses.

 Your payroll is handled by experts.

 A bespoke system that can be tailored to your needs.

 Affordable solutions made available.

4. Agency managed payroll service

You can hire an outside payroll service agency to take care of your payroll. With a
payroll agency handling your payroll all obligations including payment of wages, deductions
etc. will be completely handled by them on your behalf. This will ensure accuracy and can
even avoid overdue payments.
Benefits of Managed payroll service:

 Best suited for larger organizations.

 All the core payroll tasks are covered.

 Accuracy and on-timely payments.

 Maintenance of 100% compliance.

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III. Benefits of Payroll System

1. Accuracy and Efficiency:

Manual payroll process is prone to errors resulting inaccurate payments causing legal
complications. An automated payroll system reduces the chances of human errors in
calculations, data entry, and tax deductions.
2. Saves Time:
Processing payroll manually can be time-consuming, especially for businesses with
many employees. A payroll system can automatically calculate employee taxes and
deductions and streamline the entire process. This frees up precious time for HR (Human
Resources) and finance personnel to focus on other essential tasks.
3. Compliance and Tax Accuracy:
As significant advantage of an automated Payroll system is that they can help
organizations stay compliant with tax and labour regulation laws. State laws are
constantly changing, making it difficult for businesses to keep track of them. A payroll
management system can help calculate taxes, deductions, and contributions accurately,
reducing the risk of compliance issues and penalties.
4. Enhanced Data Security:
Employee payroll data includes Sensitive and confidential information such as social
security numbers, bank account information and salary details. A reliable payroll system
offers data encryption and secure storage, protecting sensitive employee information
from unauthorized access and potential data breaches.
5. Employee Self-Service:
Many payroll systems provide employees with self-service portals where they can
view their pay stubs, tax forms, and other payroll-related information. This empowers
employees to access and manage their data independently.
6. Provision of real time analytics:
Payroll systems often come with reporting and analytics features that help businesses
track employee time and attendance, generate reports on labour costs and productivity,
and identify trends and patterns in payroll data. This data can be valuable for decision-
making and financial planning as well as identify areas for improvement.

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7. Integration with accounting software:

A well-integrated payroll system can seamlessly synchronize with accounting
software, making it easier to manage overall financial records and streamline the
reconciliation process.

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IV. Features of Payroll

1. Time Tracking Integration

Check if it has a time-tracking module. A time tracking module can help keep track of
all employees working in your organization, whether they are working hourly or doing
a general shift etc. This feature allows them log in and log off on the portal avoiding the
hassle of manual entries, improving efficiency and accuracy.

2. Direct Deposit

Running behind the HR to resolve your salary issues happens more often than you
think. With the direct deposit feature in the payroll system software, the employee
portal automatically generates a payslip when the salary is paid to the employees. You
can access your salary slips to get details about any cuts, tax deductions etc.

3. Expense Management

Keeping track of Reimbursements like travel and lodging expenses of employees can
become quite chaotic. With a payroll processing system software, the expenses
management can be integrated making it a simpler affair. A payroll software must be
able to automate your expense reports and payment processes. This can save time and
enhance the accuracy of reimbursements.

4. Compensation management

Competitive pay is an important parameter if an organization is hoping to land the

best employees. If the payroll system has the right features and compensation
management tools, it is easier to allocate and manage a budget that aligns with the
company’s goals. It allows the easy facilitation of rewarding employees without
compromising on the budget. You can get data insight capabilities that gives you the
edge to make the case for bonuses, cost of living compensation increases, increases
based on merit etc.

5. Employee Self-service

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This feature poses one of the biggest advantages for not just the employees but for the
HR team as well. Employees are given access to their records and can change any
personal information at any point in time. It gives them direct access to their leave
balances, w-2 forms etc. This drastically reduces the workload of the HR giving them
time to work on other essential tasks of the organization.

6. Payroll reports

Running payroll reports is critical for every organization. The right payroll system
must be able to customize payroll reports as per the organization’s needs and generate
reports to give quick, easy insights. Payroll reports can help you create datasets for your
company’s essential metrics. These customizable reports help create tailored datasets
for your company’s critical metrics. You need to also make sure that the software gives
you complete access to all the payroll reports generated.

7. Filing of tax

Tax law are constantly changing, and keeping up with them can become difficult. A
payroll system software automatically updates all information regarding changes in tax
rates. This makes the tax filing process easier as it eliminates your need for guesswork
on deductions and streamlines the filing process and generates W-2s.

8. Payroll integration

Payroll integration allows you to seamlessly plug into your existing programs, apps,
and partners to meet the needs of your company and employees. We have one of the
best Payroll software in India that helps automate the flow of data to and from HR and
Payroll platforms with immense ease. It helps you leverage systems without the hassle
of time management or poor user experience. Your desired one-stop shop with a single
login is what we offer. Our payroll software helps you integrate technology into the
existing platforms of your organization.

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V. Create Administrative Report

1. Brief Description
The use case allows the Payroll Administrator to create either a “Total Hours
Worked” or “Pay Year-to-Date” report.

2. Flow of Events

1) Basic Flow
The use case begins when the Payroll Administrator requests that the
system create an administrative report.

1. The system requests that the Payroll Administrator specify the following report
criteria:

 Report Type (either total hours worked or pay year-to-date),

 Begin and end dates for the report,

 Employee name(s)

2. Once the Payroll Administrator provides the requested information, the system
provides the Payroll Administrator with a report satisfying the report criteria.

3. The Payroll Administrator may then request that the system save the report. At
which time, the system requests the Payroll Administrator to provide the name
and location for saving the report.

4. Once the Payroll Administrator provides the requested information and confirms
the decision to save the report, the system saves the report to the specified name
and location.

5. If the Payroll Administrator did not elect to save the report, the report is discarded.

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2) Alternative Flows
1. Requested Information Unavailable

If in the Basic Flow, the requested information is unavailable, the system will
display an error message. The Payroll Administrator can choose to either return to
the beginning of the Basic Flow, or cancel the operation, at which point the use
case ends.

2. Invalid Format or Insufficient Information

If, in the Basic Flow, the Payroll Administrator has not specified sufficient
information to create the selected report, the system will prompt the actor for the
missing information. The Payroll Administrator can either enter the missing
information or choose to cancel the operation, at which point the use case ends.

3. Pre-Conditions
The Payroll Administrator must be logged onto the system in order for this use case to
begin.

4. Post-Conditions
The system state is unchanged by this use case.

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VI. Create Employee Report

1. Brief Description
The use case allows the Employee to create a “Total Hours Worked,” “Total Hours
Worked for a Project”, “Vacation/Sick Leave,” or “Total Pay Year-to-Date” report.

2. Flow of Events

1) Basic Flow
This use case starts when the Employee wishes to create a “Total Hours Worked,”
“Total Hours Worked for a Project”, “Vacation/Sick Leave,” or “Total Pay Year-to-
Date” report.

1. The system requests that the Employee specify the following report criteria:

- Report Type (either “Total Hours Worked,” “Total Hours Worked for a Project”,
“Vacation/Sick Leave,” or “Total Pay Year-to-Date”)
- Begin and end dates for the report

2. If the Employee selected the “Total Hours Worked for a Project” report, the system
retrieves and displays a list of the available charge numbers from the Project
Management Database. The system then requests that the Employee select a
charge number.

3. Once the Employee provides the requested information, the system provides the
Employee with a report satisfying the report criteria.

4. The Employee may then request that the system save the report. At which time,
the system requests the Employee to provide the name and location for saving the
report.

5. Once the Employee provides the requested information and confirms the decision
to save the report, the system saves the report to the specified name and location.

6. If the Employee did not elect to save the report, the report is discarded.

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2) Alternative Flows

 Requested Information Unavailable

If, in the Basic Flow, the requested information is unavailable, the system will display
an error message. The Employee can choose to either return to the beginning of
the Basic Flow, or cancel the operation, at which point the use case ends.

 Invalid Format or Insufficient Information

If, in the Basic Flow, the Employee has not specified sufficient information to create
the selected report, the system will prompt the actor for the missing information. The
Employee can either enter the missing information or choose to cancel the operation,
at which point the use case ends.

3) Pre-Conditions
The Employee must be logged onto the system before this use case begins.

4) Post-Conditions
The system state is unchanged by this use case.

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VII. Login
1. Brief Description
This use case describes how a user logs into the Payroll System.

2. Flow of Events

1) Basic Flow
This use case starts when the actor wishes to Login to the Payroll System.

 The system requests that the actor enter his/her name and password

 The actor enters his/her name and password.

 The system validates the entered name and password and logs the actor into the
system.

2) Alternative Flows

3) Invalid Name/Password

If, in the Basic Flow, the actor enters an invalid name and/or password, the
system displays an error message. The actor can choose to either return to the
beginning of the Basic Flow or cancel the login, at which point the use case ends.

3. Post Conditions
If the use case was successful, the actor is now logged into the system. If not, the
system state is unchanged.

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VIII. Maintain Employee Information

1. Brief Description
This use case allows the Payroll Administrator to maintain employee information.
This includes adding, changing, and deleting employee information from the system.

2. Flow of Events

1) Basic Flow
This use case starts when the Payroll Administrator wishes to add, change, and/or
delete employee information from the system.

 The system requests that the Payroll Administrator specify the function he/she
would like to perform (either Add an Employee, Update an Employee, or
Delete an Employee)

 Once the Payroll Administrator provides the requested information, one of the
subflows is executed.
If the Payroll Administrat-or selected “Add an Employee“, the Add an
Employee subflow is executed.
If the Payroll Administrator selected “Update an Employee“, the Update an
Employee subflow is executed.
If the Payroll Administrator selected “Delete an Employee“, the Delete an
Employee subflow is executed.

o Add an Employee
1. The system requests that the Payroll Administrator enter the employee information. This
includes:

 Name

 employee type (hour, salaried, commissioned)

 mailing address

 social security number

 standard tax deductions

 other deductions (401k, medical)

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 phone number

 hourly rate (for hourly employees)

 salary (for salaried and commissioned employees)

 commission rate (for commissioned employees)

 hour limit (some employees may not be able to work overtime)

2. Once the Payroll Administrator provides the requested information, the system
generates and assigns a unique employee id number to the employee and sets the
paycheck delivery method to default of “pickup”. The employee is added to the system.

3. The system provides the Payroll Administrator with the new employee id.

o Update an Employee
1. The system requests that the Payroll Administrator enter the employee id.

2. The Payroll Administrator enters the employee id. The system retrieves and displays
the employee information.

3. The Payroll Administrator makes the desired changes to the employee information.
This includes any of the information specified in the Add an Employee sub-flow.

4. Once the Payroll Administrator updates the necessary information, the system updates
the employee record with the updated information.

o Delete an Employee
1. The system requests that the Payroll Administrator specify the employee id.

2. The Payroll Administrator enters the employee id. The system retrieves and displays
the employee information.

3. The system prompts the Payroll Administrator to confirm the deletion of the
employee.

4. The Payroll Administrator verifies the deletion.

5. The system marks the employee record for deletion. The next time the payroll is run,
the system will generate a final paycheck for the deleted employee and remove the
employee from the system.

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2) Alternative Flows

o Employee Not Found

If in the Update an Employee or Delete an Employee sub-flows, an employee with the
specified id number does not exist, the system displays an error message. The Payroll
Administrator can then enter a different id number or cancel the operation, at which
point the use case ends.

o Delete Cancelled
If in the Delete An Employee sub-flow, the Payroll Administrator decides not to
delete the employee, the delete is cancelled and the Basic Flow is re-started at the
beginning.

3. Pre-Conditions
The Payroll Administrator must be logged onto the system before this use case begins.

4. Post-Conditions
If the use case was successful, the employee information is added, updated, or deleted
from the system. Otherwise, the system state is unchanged.

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IX. Maintain Timecard

1. Brief Description
This use case allows the Employee to update and submit timecard information.
Hourly and salaried employees must submit weekly timecards recording all hours
worked that week and which projects the hours are billed to. An Employee can only
make changes to the timecard for the current pay period and before the timecard has
been submitted.

2. Flow of Events

1) Basic Flow
This use case starts when the Employee wishes to enter hours worked into his current
timecard.

1. The system retrieves and displays the current timecard for the Employee. If a
timecard does not exist for the Employee for the current pay period, the system
creates a new one. The start and end dates of the timecard are set by the system and
cannot be changed by the Employee.

2. The system retrieves and displays the list of available charge numbers from the
Project Management Database.

3. The Employee selects the appropriate charge numbers and enters the hours worked for
any desired date (within the date range of the timecard).

4. Once the Employee has entered the information, the system saves the timecard.

o Submit Timecard
1. At any time, the Employee may request that the system submit the timecard.

2. At that time, the system assigns the current date to the timecard as the
submitted date and changes the status of the timecard to “submitted.” No changes
are permitted to the timecard once it has been submitted.

3. The system validates the timecard by checking the number of hours worked
against each charge number. The total number of hours worked against all charge
numbers must not exceed any limit established for the Employee (for example, the
Employee may not be allowed to work overtime).

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4. The system retains the number of hours worked for each charge number in the
timecard.

5. The system saves the timecard.

6. The system makes the timecard read-only, and no further changes are allowed
once the timecard is submitted.

2) Alternative Flows

o Invalid Number of Hours

If, in the Basic Flow, an invalid number of hours is entered for a single day (>24), or
the number entered exceeds the maximum allowable for the Employee, the system
will display an error message and prompt for a valid number of hours. The Employee
must enter a valid number, or cancel the operation, in which case the use case ends.

o Timecard Already Submitted

If, in the Basic Flow, the Employee’s current timecard has already been submitted, the
system displays a read-only copy of the timecard and informs the Employee that the
timecard has already been submitted, so no changes can be made to it. The Employee
acknowledges the message and the use case ends.

o Project Management Database Not Available

If, in the Basic Flow, the Project Management Database is not available, the system
will display an error message stating that the list of available charge numbers is not
available. The Employee acknowledges the error and may either choose to continue
(without selectable charge numbers), or to cancel (any timecard changes are discarded
and the use case ends).
Note: Without selectable charge numbers, the Employee may change hours for a
charge number already listed on the timecard, but he/she may not add hours for a
charge number that is not already listed.

3. Pre-Conditions
The Employee must be logged onto the system before this use case begins.

4. Post-Conditions
If the use case was successful, the Employee timecard information is saved to the
system. Otherwise, the system state is unchanged.

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X. Run Payroll
1. Brief Description
The use case describes how the payroll is run every Friday and the last working day of
the month.

2. Flow of Events

1) Basic Flow
The use case begins when it’s time to run the payroll. The payroll is run automatically
every Friday and the last working day of the month.

1. The system retrieves all employees who should be paid on the current date.

2. The system calculates the pay using entered timecards, purchase orders, employee
information (e.g., salary, benefits, etc.) and all legal deductions.

3. If the payment delivery method is mail or pick-up, the system prints a paycheck.

4. If the payment delivery method is direct deposit, the system creates a bank transaction
and sends it to the Bank System for processing.

5. The use case ends when all employees receiving pay for the desired date have been
processed.

2) Alternative Flows

o Bank System Unavailable

If the Bank System is down, the system will attempt to send the bank transaction
again after a specified period. The system will continue to attempt to re-transmit until
the Bank System becomes available.

o Deleted Employees
After the payroll for an Employee has been processed, if the employee has been
marked for deletion (see the Maintain Employee use case), then the system will delete
the employee.

3. Post-Conditions
Payments for each employee eligible to be paid on the current date have been
processed.

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XI. Conclusion

A reliable payroll management system is either a product of third-party payroll

processing services provided by or the perfect payroll management software that aligns with
the organization’s needs perfectly. Many times, companies choose to have an employee
payroll system in-house route and hire people capable of managing it on their own.

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