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Payroll Administration System, Practical Solutions for Managing Employee Salaries

Employee payroll must of course be done correctly because employees are one of the important assets of every company. If previously this activity was done manually, now the HR team can speed up the process by using payroll administration as a practical solution for managing employee salaries. Interesting right?
But, make sure you understand this type of advanced technology before implementing it. Check out the complete information below.

Definition of Payroll Administration System

Maybe there are still many of you who don't understand this type of software. Yes, the payroll administration system is one of the implementations of HRIS compensation designed to carry out payroll and benefits for employees in a company. Simply put, this software can help companies automatically calculate employee salaries based on certain components.

Employee payroll is one of the jobs that must be done quickly and precisely. If done conventionally, it takes a long time. Even more so if your company has many employees. With a payroll administration system, the job can of course be easier to do.

Why Should You Implement a Payroll Administration System?

Payroll administration system is a practical solution for managing employee salaries because it is equipped with an input system and automatically calculates data. This of course can help the employee payroll process to be done more quickly and precisely. Because it is done automatically by a sophisticated system, there will be no risk of miscalculation of employee payroll or late payment of salaries.

In addition, this automation of employee salary calculations will make the HRD team work efficiently. Thus they will not do it manually and repeatedly every time they will pay employees. That's why you have to start implementing a payroll administration system at the company.

Components that Must Exist in a Payroll Administration System
There are several components that must be present in the payroll administration system, as follows:

Basic salary

Basic salary is the basic compensation given by the company to its employees. Basic salary is paid according to the level of work held by each employee. Before joining the company, employees will agree on the amount of basic wages they will receive.


The company must also provide benefits for each of its employees. There are two types of allowances, namely fixed allowances and variable allowances. Fixed benefits will be paid with the employee's basic salary. This allowance has nothing to do with the employee's performance while working, such as insurance, child benefits, wife benefits and others.

Meanwhile, non-fixed allowances are not given together with the basic salary. Examples of non-fixed allowances are transportation costs, meal allowances, and so on.

Overtime Wages

Furthermore, the company must also include overtime pay in the administrative payroll system. This wage is given in addition to employees who work outside the official working hours. Every company that implements this overtime work system is required to include overtime pay in the calculation of employee salaries.


Not only that, in the payroll component there are also several deductions made by the company which will reduce the amount of income of its employees. These deductions include income tax, debt repayments to companies, or sanctions for violating regulations.

So, that's complete information about the payroll administration system, a practical solution for managing employee salaries. Of course, you can choose Soltius to implement this sophisticated system in your company. Thus the employee payroll process can be done quickly and precisely without any errors or delays. Check the info at

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