Payroll System/TIPS (Tax & Investment Planning System) for SME

Executive Summary

Our customer is a leading semiconductor services and solutions company. Over the past 15 years, the company grew in size and diversified its business segments, setting up offices across the globe. With over 13 offices globally across continents and 600+ employees distributed in various offices, managing the payroll and tax planning of employees became a tedious task.

Customer was looking for a system that could automate the information flow between the HR and Account departments. The system should facilitate the accounts department to manage employee’s payroll and employees should be able to declare their investments online.

ennovate was engaged to automate the payroll and taxation processes for the customer. With this new payroll and tax planning system, the customer was able to automate the taxation rules every year, integrate US offices payroll and calculate onsite travel compensation.

With the central online payroll system, customer was able to bring down 17 day task to 2 days! Number of reports like quarterly report, taxation form 16, CTC reports were also generated with 100% accuracy. An online tax planning system facilitated the employees to calculate and declare their tax investments online.

The Customer

• Our customer is a leading technology design services & solution company offering ASIC/FPGA, Embedded Systems and Software services across various industries. Their capabilities include silicon design and verification, high-speed board design, embedded firmware and application software development. The company's India and US design centers, have delivered system level solutions to a variety of customers

The Challenge

• Manual computations resulting in multiple issues like delay, productivity loss - The customer used to manage payroll of employees manually, which lead to lots of paper work and manual computations
• Managing taxation rules every year with minimal efforts

The Solution

• ennovate implemented the system on MVC architecture using Struts framework with Tiles template. Report generation is done in PDF format using iText and in Microsoft Excel format using POI & JExcel API
• To curtail paper work, payroll system helps accounts department in managing salary and tax for employees. It provides integration with the existing HRMS system to compute employee’s attendance, based on which salary is calculated. Tax & Investment Planning System (TIPS) also provides an interface to the payroll system in order to help employees entering the investment declarations which are then directly incorporated in the payroll system
• Apart from this, payroll system provides full and final processing for relieved employees, reimbursement calculations, financial reports, eTDS, Form 16, Form 12 BA & Salary certificate generation, and online salary slip through TIPS.
• To provide security in the system, all the financial data are encrypted using 128 bit encryption
• In order to manage taxation rules, all the tax rules are maintained in the form of formulas in database based on financial year

Architecture diagram of the system:

The Benefit

• With this automated system we provided following benefits to our customer:
  • Automated salary & tax calculation
  • Huge amount of paperwork avoided by selecting salary options and managing investment declarations online
  • Financial Reports, taxation Form 16/Form 12BA/Salary Certificate/ETDS reports
  • Online salary slips this helping customer to meet “Go Green” Initiative