5 Tips for Managing Payroll in Educational Institutes

When we consider an educational institution, managing payroll manually is quite tough.

There are a number of employees such as teachers, administrative staff, clerks, receptionists, and other assistant staff whose payroll needs to be managed every month in an academic year.

As an institution, if you are handling the payroll manually, chances are –

· The calculations may have errors

· Unnecessary deductions may show up

· It may end up in unnecessary consumption of time & resources

Wondering –

Is there any way to manage payroll effectively without making any mistakes?”

Yes, there is!

In fact, I am going to share with you 5 tips for managing payroll in educational institutes…

Tip #1: Switch to Educational ERP with Payroll System

Whenever there’s manual work, piles of paperwork & errors are bound to appear.

Creating an employee database based on their attendance, leave, monthly salary, tax deductions, and much more alongside handling a number of files is surely not worth the time & efforts of your faculty and HR department.

As an educational institution, switching to education ERP software with a payroll management system is the easiest way to streamline, simplify, and conduct the payroll calculations without any errors & piles of files.

Tip #2: Configure the Payroll Management System

When you go digital via a paperless platform, it’s crucial that you configure the payroll management system as per the requirement of your institution.

For instance, you run a MAT (Multi-Academy Trust) and require centralized human resource management software that could compile the data from all the institutions and store it in one place. The purpose is to keep the transparency of operations when it comes to faculty salary & payroll.

Here you may need a secure cloud-based ERP that would help your higher management authorities to keep a tab on every single detail. To further enhance its utility, you may ask the ERP vendor to configure a role-based access system.

In this way, you can configure a smart system for your educational institution and meet the functional requirements.

Tip #3: Define Rules for Seamless Workflow

The third tip for accurate payroll management is the most important.

As an educator or HR executive, you must be aware of the simple fact that every single institution needs to follow certain rules & regulations set up by the Government of India (GOI).

The GOI has pre-defined certain criteria for DA, HRA, TA, GPF, PT, CLA, PF, income tax, and form number 16.

So, while calculating the payroll for every month, you can’t skip these aspects.

No matter what ERP campus software you use, you have to define these rules beforehand and then streamline the calculations to attain 100% accurate results.

Tip #4: Integrate with Useful ERP Software Modules

Okay, let’s say you have set up the rules & regulations.

Next what?

The next thing is ERP technology integration!

Whether you are a university using a university management system, a school using school ERP software, or a college using college management software — you need to integrate the payroll system with it.


Not just one, there are many!

Let’s me give share some prime reasons-

· Faculty record maintenance

· No repetitive data entry work

· Easy attendance calculation

· Employee leave management

· End-to-end payroll processing

· Faculty performance reports

· Quick salary calculation

As an HR professional, you don’t need to pull out data from various modules!

Everything that you need can be quickly found with a few clicks. Plus, when it comes to deductions, often faculty complains of wrong deductions.

When you integrate the faculty attendance module with the payroll HR software, things become crystal clear and there’s no reason for working twice for ensuring correct attendance.

Furthermore, you can generate reports of attendance, salary bill register, payslips, monthly installment report, bank statement, PF-related reports, declaration forms, and much more.

Tip #5: Train Your HR Department for Best Practices

Last but not least — please train your HR department on how they can use the payroll management system!

Yes, it may seem a silly tip but it is crucial!

Often, an institution asks an ERP vendor to configure the best campus automation software for payroll management with user-friendly features.

Still, the ERP implementation fails!

Frankly, it’s your HR department & staff who are going to use the software. If they don’t understand the functionalities, chances are they won’t be able to use them effectively.

Instead of minimizing the workload, it may result in over-consumption of time!

Therefore, arrange a training session for your faculty before the final implementation of the payroll software for your educational institution.

To Sum Up

Anne M. Mulcahy once quoted -

“Customers require the effective integration of technologies to simplify their workflow and boost efficiency.”

This is exactly what I have tried to explain through the 5 tips for managing payroll in educational institutes.

Managing payroll can be made easier with the digitization of the process with the right software. As an educator, you need to research the most trustworthy payroll management & HR software to achieve the best ROI and productivity.

For more information on ERP campus software that can help you minimize the workload and offer seamless workflow, get in touch with our team today!

I am a Bachelor Degree Holder in Computer Science, I am a Software Developer and Educational Consultant for enabling colleges, schools, universities automated.