Income Tax compliances can be a major stressful work but it still forms a fundamental part of every company’s payroll procedure. There are various tax laws at separate levels, counting local, state, national, and even international tax laws, subjected to the size of the company and where it conducts its businesses. And, at some point, any given business will end up relying on its HR team to help in ensuring that its taxes are filed and paid appropriately. HR professionals can provide invaluable help with both employer and employee tax filing if they educate themselves, stay organized, and keep up to date on the ever-changing tax code. But at the same time, implementing Human Resource Management Software(HRMS) will simplify the tax filing process more.
RAMIFICATION OF TAX ERRORS:
Businesses need to ensure that payroll and taxes are done properly because mistakes can cost the company a lot of money. Certain tax mistakes could see jail time for those responsible for making them. Typically punishment for tax mistakes is monetary penalties rather than jail time, but if taxes are withheld from employee paychecks but not paid to the IRS, that can result in the person or people responsible being held criminally liable.
BENEFITS OF USING A HRMS FOR TAX COMPLIANCE:
- Accuracy is critical to tax compliance and HRMS has a definite accuracy advantage over either a paper-based or non-integrated digital solutions. Basic compliance may encompass recording and submitting information consistent with a strict timetable, but it would be far better if that information is also precise.
- Cloud HRMS are automatically updated to keep pace with changes to the current labor laws, notifying users as and when compliance requirements change. Automating employee records, benefits, timesheets, and payroll can ensure accuracy that will make the tax filing process faster while reducing the possibility of errors.
- If your company has business internationally, there may also be international laws you must respect. An HRMS can help your HR department keep a trail of the legislation that affects your company. All records can be kept in one secure place for easy access. Your records can also be easily submitted if they’re kept digitally, which also reduces paper usage.
- The implementation of HRMS can make the TDS Proof collection process much easier with zero chances of getting it erred. From orchestrating automatic email alerts to employees for the proof submission to online reviews of the document by Administrators & information exchange on the status report, it completes all the process in less time & more efficiently.
- It also enables Income Tax (TDS) recalculation in the Payroll automatically without you needing to do anything else. In a single click, lock the declarations and include them for payroll processing.
So, to stay on top of Income Tax compliance and be 100% sure all proofs have been collected and processed for timely filing TDS, making use of Human Resource Management Software(HRMS) like that of PeopleWorks is your best option. It is innovatively designed as the modern solution for all your HR-related tasks so that your HR department can effectively use time on creating a cultural workforce environment.