6 reasons you should use a payroll ERP

It is very common in micro and small businesses for payroll to be done in spreadsheets. In fact, when you have one or two employees, it might work.

However, as the company grows and new employees are hired, making the sheet by hand is not so interesting. After all, the risks of errors are much greater, especially if there is a commission and other salary specifics.

If you want to avoid or get rid of problems like these, the tip is to bet on an ERP system for payroll.

Want to know more about it? Read on and discover why it is so important to hire a payroll ERP for your business!

What is a Payroll ERP?

Enterprise Resource Planning (ERP) stands for Enterprise Resource Planning. In general, it is a type of system responsible for centralizing information from the most important sectors of a business, such as financial, accounting, tax, sales, and inventory control.

The main function of an ERP system is to give business owners a complete view of what is happening in the company, but in a digitalized way, that is, without notebooks or spreadsheets.

Some of these systems have a specific payroll feature. Through them, it is possible to calculate the salary of employees automatically, generate paychecks and even manage payments for leave in general, such as dismissals and medical certificates.

The Importance of an ERP for Payroll

In practice, using an ERP of this type transforms payroll management, which has a direct impact on the day-to-day of the business, as:

  • Less time is spent on tasks that are not so important for the company,
  • The information is stored securely;
  • Employees’ salaries are calculated automatically, considering discounts, benefits and payment of charges;
  • Access to employee payment data is much easier, as everything is centralized ;
  • Payment delays and errors are avoided;
  • The ERP system issues paychecks, which helps in the relationship with employees regarding the transparency of payment data;
  • It can be integrated with finance, accounting and with the personnel department itself, responsible for monitoring the hours worked, absences and absences of employees.

Understand in the next topic a little more about these advantages.


6 reasons to use ERP for payroll

   1. Collection of charges and discounts

There are several charges to be deducted from employees’ salaries, such as FGTS and INSS. In addition, other discounts related to benefits can also be applied, such as, for example, in the case of companies that pay part of the monthly fee of the employee’s health plan.

Calculating this manually, in addition to the delay, increases the risk of failure, since these values ​​are not usually fixed, but percentages.

A payroll ERP already performs all these calculations automatically

   2. Control of working hours and bank of hours

Are your employees’ overtime “written down” somewhere or do you trust that you will remember who over time and how much extra time they worked?

When making the payment proportional to the workday, as well as overtime worked, the ERP for payroll already makes all these calculations available to you.

In addition, these values ​​are updated daily and you can follow them through the system.

   3. Registration of positions and salaries


In the ERP for payroll, all data referring to salary, working hours, overtime and benefits are already saved. In this way, you only need to register this information once.

With that, every time an employee enters or leaves, or a promotion occurs, all you have to do is adjust the position and let the system do all the calculations.

Much simpler, don’t you agree?

   4. Benefits Management


As we said, some companies offer their employees benefits such as payment of part of the health plan, day care allowance, and salary advance, for example.

Calculating all this and also identifying who should receive each benefit, manually, would take a lot of time. The payroll ERP already does all this work automatically and everything is recorded in the system.

   5. Reporting

Want to know how much you spent on payroll in the last month? And in the last year?

With an ERP for payroll, it is possible to have access to specific reports about each employee, sector or even the company, in a given period of time.

   6. Releases and histories

In the ERP paid payroll, it is possible to simply view the entire history and entries of each sheet individually.

With this, if the employee has any doubts, just issue the report for the corresponding period.

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