Calculating employee tax is a crucial factor for any organization. However, it is a challenging task requiring precision and attention to detail. The traditional methods of calculating employee taxes frequently require a lot of paperwork.
Additionally, manual calculations involve the possibility of human error. Yet, technology is moving in the direction of constant improvement. Digital tax calculators are now available that can fully automate the tax calculation process.
They offer a useful method for handling employee taxes. One such example of how technology is transforming the future of employee tax calculation is ConfluxHR’s Digital TDS Calculator.
How Can a Digital Employee Tax Calculator Help?
This robust software automates all tasks required for calculating and reporting employee income taxes. An arrangement like this offers your HR manager 24-hour support during employee tax management.
The features of a digital tax calculator are highlighted below. They will demonstrate how technology is changing the game for employee tax calculation:
Employee Savings Can Be Captured Digitally
Employees can use the Employee Self Service (ESS) module to upload their Proof of Investments to the HRMS platform, such as the ones listed below:
- PPF
- SCSS
- EPF
- VPF
- ELSS
- Tax-saving FD
- NSC
- NPS
- Sukanya Samraddhi Scheme, among other things
The software captures these savings digitally, ensuring accurate and efficient tax computation.
Employee Tax Calculation Process That Is Automatic, Accurate, and Simple
You can compute your employer’s tax liability using a digital tax calculator. It provides a framework for subtracting necessary deductions from your employee earnings. All applicable taxes and statutory deductions can be computed using the software.
Such a configuration ensures that the entire process is accurate and efficient.
TDS Estimates & Employees’ Advance Tax Calculation
TDS estimates are provided instantly by the software. It enables human resource managers to plan their budgets and make informed decisions. It also allows for the calculation of employee taxes in advance.
Thus, HR managers can avoid last-minute surprises.
Generate Form 12BB Using Payroll, Tax, and Exemption Information
Form 12BB is generated by a digital tax calculator using payroll, tax, and exemption data, streamlining the process of generating employee tax returns.
Enhanced Knowledge of Statutory Compliance
The software is compatible with many types of statutory deductions and social insurance. Such examples are as follows:
- Income tax
- Employee state insurance
- Professional tax
- Provident fund
- Labor welfare fund, etc.
Better solutions may be implemented with a greater grasp of the various types of statutory deductions and social insurance. It improves the process’s efficiency and accuracy.
Track and Monitor Tax Deductions Remotely
A digital tax calculator provides manual deduction options. It also allows you to choose between old and new deductions. Also, HR managers can monitor tax deductions remotely.
This provides flexibility and convenience to the HR admin. In such a case, HR administrators can administer employee taxes easily and remotely.
Finally, the future of employee tax calculation is shifting to computerized tax calculators. Human resource managers want solutions that deliver automation, accuracy, and efficiency.
ConfluxHR’s Digital TDS Calculator is one example of how technology is changing the game regarding employee tax calculation. It is quickly becoming the go-to solution for organizations wishing to optimize their employee tax computation process due to its extensive features and ease of use.