Your Buyer’s Guide to Payroll & Attendance Software
Key Takeaway: The best payroll & attendance software unifies time data with pay rules, automates PF/ESI/PT/TDS, handles multi-shift & OT, offers ESS for employees, and delivers audit-ready reports—while scaling from 20 to 500+ employees without chaos.
Payroll accuracy starts with accurate attendance. Spreadsheets, manual registers, and disconnected biometric files create errors, delays, and compliance risks. A modern solution should capture time data reliably, apply your pay rules transparently, and produce compliant payroll in hours—not days.
Must-Have Features (Checklist)
Attendance Capture
Biometric/RFID, web, mobile punch with selfie, geofencing/geotagging, IP/device rules.
Shift & OT Rules
Multi-shift, weekly-off, night shift spanning, OT slabs, late/early grace & penalties.
Leave & Comp-Off
CL/SL/PL/WO/PH, encashment, carry-forward, sandwich rules, probation policies.
Payroll Engine
CTC components, allowances/deductions, arrears, loans/advances, incentives, F&F.
Compliance
PF, ESI, PT (state-wise), LWF, TDS, Form 16/24Q, challans, returns, audit logs.
ESS & Manager App
Payslips, leave, regularization, approvals, notifications, policy hub—mobile first.
Integrations
Biometric devices, accounting/ERP, banks, UPI/salary disbursal, Excel import/export.
Dashboards
Power BI/embedded analytics for headcount, OT, absenteeism, cost per employee.
Why Unifying Attendance & Payroll Matters
Operational Benefits
- Single source of truth from punch to payslip
- Less manual reconciliation and fewer disputes
- Faster month-end; T+1 payroll possible
- Role-based approvals and audit-ready trails
- Branch-wise visibility (plant, depot, HO) in one view
Compliance & Risk Control
- Auto PF/ESI/PT/TDS with state variations
- Statutory registers & returns at a click
- Maker-checker and change logs for audits
- Bank & challan files generated accurately
Comparison: Legacy vs Modern Stack
| Area | Legacy (Spreadsheets & Imports) | Modern (Unified HRMS) |
|---|---|---|
| Attendance Data | Manual collation from devices/files | Live Streamed, validated, regularized |
| Shift & OT | Hard to maintain, error-prone | Rule-based Versioned, auditable |
| Payroll | Macros & late nights | Engine Runs in hours with checks |
| Compliance | Manual forms; risky | Auto PF/ESI/PT/TDS + returns |
| Visibility | Multiple sheets; no real-time view | Dashboards OT/Absence/Cost trends |
| Security | Files shared over email | RBAC Logs, encryption, policies |
30-Day Rollout Plan (SME)
Week 1 — Foundation
- Master data cleanup (employees, branches, shifts)
- Device/mobile punch onboarding & policies
- Pay structure & statutory mappings
Week 2 — Rules & Testing
- Late/early/OT slabs, weekly off & night shifts
- Leave types, comp-off, regularization flow
- Dry run payroll with last month’s data
Week 3 — ESS & Approvals
- Manager dashboards & role-based approvals
- Employee app launch, quick video SOPs
- Bank/challan test files & statutory registers
Week 4 — Go Live
- Live attendance → payroll in system
- Variance audit and sign-off
- Publish dashboards to leadership
iHRMS Snapshot
Multi-shift & OT slabs, geo-fencing mobile punch, biometric integrations, ESS, PF/ESI/PT/TDS automation, loans & advances, bank/challan files, Power BI dashboards, maker-checker, and audit logs—supported Pan-India (Vasai, Virar, Palghar, Bhiwandi, Mumbai, Navi Mumbai, and beyond).
FAQs
Can we run payroll even if a device goes down?
Yes. iHRMS supports multiple capture modes—biometric, web, and mobile with geo-fencing. Regularization workflows fill gaps with approvals.
How do you handle state-wise PT and LWF?
State rule packs are versioned. The engine applies slabs based on location mapping and employee category.
Do you support night shift crossing midnight?
Yes. Night shift spanning, grace windows, and OT on either side are configurable and auditable.
What about data security?
Role-based access, field-level permissions, encryption in transit/at rest, IP/device restrictions, and complete change logs.
How fast can we go live?
SMEs typically complete the foundation → go-live in ~4 weeks using the rollout plan above, depending on master data readiness.