People often need immediate access to funds in case of emergencies, and one of the simplest ways of doing this is to ask your employer for an advance on upcoming salaries. Opfin has always supported salary advances, but they were initiated directly by the administrator, and there was no way for an employee to request an advance, or to track the status of their request. Since this is a fairly often used feature, we have made it simpler and more convenient for employees as well as employers now.
At Opfin, we took a call that instead of building a typical shallow HRMS tool that does a lot of things in a poor fashion, we would make a payroll and payments solution that went deep and fulfilled all the requirements that usually come up in this space. And while we are proud of the product that we have built so far (and your reviews reflect that too), we still keep identifying and filling in the gaps.
For most users, using Opfin implies logging into the web interace through their web browser and quickly going through their tasks. However, Opfin offers another way to access it and make changes - through an API (Application Program Interface). Using an API, an organization can automate tasks so that they’re executed through software at their end, without the need to use the web interface at all. Using an API will require tech integration at the organization’s end, so this is ideally used if you have an in-house tech team.
Calculating HRA exemption accurately is not easy. To summarize, HRA exemption is calculated as the least of the following - The amount actually paid as HRA. Rent paid minus 10% of the basic salary. 50% of the basic salary if the rented accommodation is in a metro city, and 40% otherwise. These rules are simple enough, but it can get a little complicated when a payroll platform like Opfin tries to calculate the HRA exemption for the entire year.
Continuing our work at improving the leaves and attendance feature on Opfin, we have now added the ability for organizations to add custom holiday calendars, depending on their office location. To use this feature, the organization has to set locations for their employees, and then go to Settings > Holidays, Leaves & Attendance and edit their list of holidays. All the locations that have been assigned to employees will automatically show up, and you can select which holidays are applicable at which locations.
It’s common that your employees might request an advance on their forthcoming salaries due to personal reasons. Opfin has always had the ability to pay these advances, and settle them with upcoming payrolls. For example, an employee with a monthly salary of Rs 50,000 might request for an advance of Rs 25,000 from the company. The Opfin administrator from the company can choose to pay this advance, which Opfin processes as an immediate bank transfer to the employee’s bank account.
The Union Budget 2019 was a pre-election budget, hence a highly anticipated one. Although the interim budget was pro-poor, the current government did not disappoint the business community since it gave a boost to the consumer economy. It has brought in changes in the tax slabs and introduced many new schemes for many sections of the society. Let’s take a quick look at the major tax reforms in the budget tabled on February 1, 2019.
Employee compensation management, which is usually referred to as payroll management, is a comprehensive process. It includes salary calculation, disbursal, payslip generation, deduction taxes, record keeping, etc. For small and mid-sized business owners, framing the salary components is often a challenge especially if they are less proficient in administering the payroll process. However, it is an inevitable task that needs to be performed periodically, and an error in the process may lead to critical legal implications.
To accurate calculate an employee’s take home salary, Opfin has to calculate several deductions like TDS, PF, ESI and Professional Tax. Of these, the TDS (tax deducted at source) is probably the trickiest since there are a lot of tax exemptions and deductions that are usually applicable. For example - HRA exemption Section 80C (Investments in ELSS funds, PPF, FD, ULIP etc.) Section 80CCD (Investments in NPS) Section 80D (Expenses towards medical insurance, preventive health checkup and other medical expenses) Section 80DD (Deduction for rehabilitation of handicapped dependent relative) Section 80E (Interest on Education Loan) Section 80G (Donations to charitable institutions) Section 24 (Home loan interest) Section 80EE (further tax benefits for first time home buyers) Managing all these deductions is a nightmare not just for the employees, but also for organizations since they are supposed to validate that all the deductions that an employee has applied for are actually valid.
Opfin supports two forms of attendance - either web based, or through our biometric devices that are deployed on the customer’s location. With the biometric device, employees can only check-in / check-out from the device itself, and thus the employer can be sure that the employee was actually there at that time. However, with web attendance there is the possibility that employees might abuse the feature by using it from any other location like their home (or a pub?