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Handling the new tax regime in Opfin

Union budget 2020 introduced a new tax regime for taxpayers in India. Several new tax slabs were introduced, with the tax being lowered across all slabs. However, there was a small catch - all exemptions (like HRA) and deductions (like Section 80C) were removed. To further complicate matters, taxpayers can choose to either remain under the old tax regime, or switch to the new regime. Overall, quite complicated! So how does one decide whether to stay in the old regime, or to opt for the new one?

Custom salary structures for your employees

When Opfin was launched, we had decided that we would offer a standard default salary structure to all organizations. The reason behind this was simple - most organizations were using outdated salary structures, that either did not offer enough benefits to their employees, or too many (thus running into compliance issues). Our first default structure had only three components in it - basic salary, HRA, and special allowance. Last year, we changed this and added LTA (leave and travel allowance) as well.

Bulk leave and attendance updates

So far in Opfin, to apply for leaves you had to individually select the dates, and mark each one-by-one. Some of you gave us feedback that it would be nice to be able to apply for leaves in bulk without going through each date individually. So, we’ve now introduced bulk attendance updates! So go right ahead, click on that link in your attendance page, and put in a request for that vacation that you have been holding off on!

Request salary advances from Opfin

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.

Offer letter generation through Opfin

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.

Opfin APIs

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.

New & improved HRA exemption calculation

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.

Setting different holidays for different office locations

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.

Advance salaries and EMIs for your employee

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.

How To Save More With New Tax Implications

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.