FactoHR HRMS Setup

Overview

Any organization's payroll is crucial. Beyond timely payroll, it assures tax and labor law compliance, safeguards employee data, and creates confidence. One payroll error might generate unhappiness, financial loss, or legal difficulties. Indian payroll was traditionally administered by spreadsheets and paper. This manual process is slow, error-prone, and unsuitable for organizations with distant or cross-state staff. Modern organizations need automation and digital payroll to be accurate, compliant, and efficient.

That is where FactoHR and ClearSlip meet. FactoHR is an Indian-trusted cloud-based payroll and HR. It automates processing of salaries, tax deductions, PF/ESI management and compliances reporting. Attendance integration, employee self-service (ESS) portals, and mobile-first access features minimize manual work by the HR teams and provide easy access to the payslips to employees.

Although FactoHR produces payslips, the last process, secure delivery, is done by ClearSlip. ClearSlip guarantees the delivery of payslips in a digital, instant and error-free way. It has the capabilities of error-free SOPs, audit-ready reports, role-based data access and low monthly cost to suit MSMEs. It also provides multi-state compliance and provides a dedicated HR manager with fast support.

FactoHR payslip automation and ClearSlip integration together form an entire digital payroll ecosystem. Companies will be able to automate salary processing, make the compliance error-free, and provide payslips to employees in the most secure manner. This collaboration is one of the biggest digital transformations of HR in India.

Benefits

• Saves Time and Improves Efficiency

One of the biggest benefits of using FactoHR payslip automation with ClearSlip is time savings. In traditional payroll systems, HR teams spend hours preparing payroll data, generating payslips, and emailing them individually. This process is slow and repetitive.

With FactoHR:

• Salaries are calculated automatically.
• Generate payslips in bulk with just a few clicks.

With ClearSlip:

• Payslips are delivered instantly to employee emails or portals.
• HR does not need to manually send them.

This reduces payroll processing time by up to 70%, allowing HR to focus on strategic work instead of routine tasks.

• Accuracy and Error-Free Payroll

Mistakes in payroll may result in stress to the employees and a dent in the credibility of the company. The risks of non-compliance are caused by errors in tax deductions, allowances, or overtime payments.

FactoHR aids in calculating the salaries correctly by drawing the information out of the attendance, leave, and statutory information. ClearSlip adds another layer of security with maker-checker SOPs and variance checks. This combination minimizes the chance of errors.

• Strong Security and Data Privacy

Payroll data is highly sensitive. It contains details such as salary, PAN, UAN, and bank account numbers. Protecting this information is critical.

ClearSlip ensures data security with:

• End-to-end encryption for payslips in transfer and storage
• Only authorized individuals can access data with role-based access.
• Activity logs and audit trails for transparency

Employee trust and data protection compliance are increased.

• Compliance Made Simple

India has state-specific PF, PT, and ESI requirements as well as complex labor laws. This is perilous and confusing to handle them manually.

Statutory deductions are applied automatically in FactoHR and produce compliant data. ClearSlip generates audit-ready reports that are seamlessly integrated with Tally, Zoho Books or QuickBooks.

This will keep the businesses in compliance without wasting hours doing manual tasks.

• Cost Savings for MSMEs

ClearSlip is designed for Indian MSMEs. It has low monthly subscriptions where a business can expand or contract at any given time without any long-term commitments.

This excludes hidden printing, paper, and courier costs. Companies making the transition to go fully digital will save money and simultaneously enhance efficiency.

• Better Employee Experience

Employees want transparency and quick access to payslips. With FactoHR and ClearSlip:

• Employees receive payslips instantly via email or portal.
• No need to request documentation from HR.
• Mobile-friendly access improves convenience.

This improves employee happiness and trust.

Procedure

Step 1: Setting Up Payroll in FactoHR

HR teams enter employee data, salary structures, and statutory details into FactoHR. Allowances, deductions, PF, ESI, and professional tax data.

Step 2: Payroll Processing

FactoHR calculates salaries automatically by pulling data from attendance and leave modules. It generates payslips in bulk.

Step 3: Integration with ClearSlip

Payslip data is securely transferred to ClearSlip via API or encrypted files.

Step 4: Verification and Error Checks

ClearSlip runs maker-checker SOPs to confirm accuracy before delivery.

Step 5: Secure Delivery of Payslips

Payslips are delivered digitally via:

• Employee emails (encrypted)
• FactoHR ESS portal or mobile app

Step 6: Reporting and Compliance

HR receives audit-ready reports for compliance and year-end filings. ClearSlip ensures proper record-keeping with delivery confirmation logs.

Documents

To set up FactoHR payslip automation with ClearSlip, businesses require the following documents:

Company Documents

• PAN and TAN registration
• GST certificate
• PF and ESI registration numbers

Employee Documents

• Aadhaar card
• PAN card
• UAN for PF
• ESIC number (if applicable)
• Bank details

Payroll Inputs

• Salary structure details (basic, HRA, allowances, deductions)
• Previous payroll records (if migrating from another system)
• Attendance and leave data

Compliance Records

• PT registration certificates for different states
• Records of PF and ESI compliance

Integration Details

• FactoHR login credentials
• ClearSlip API or integration setup
• Employee directory with email addresses

Having these documents ready ensures a smooth transition to digital payroll delivery.

FAQs

Q1: How does ClearSlip work with FactoHR?

ClearSlip integrates with FactoHR to receive payslip data securely. Payslips are encrypted and sent to employees digitally.

Q2: Can employees access their FactoHR payslips online?

Yes. Employees can log into the FactoHR ESS portal or mobile app. ClearSlip also delivers payslips via email for easy access.

Q3: What are the benefits of using ClearSlip with FactoHR?

The benefits include:

• Automated payroll calculation and delivery
• Secure data handling with encryption
• Error-free SOP checks
• Affordable pricing for MSMEs
• Audit-ready compliance reports

Q4: Does ClearSlip support bulk payslip delivery in FactoHR?

Yes. ClearSlip is built to handle bulk delivery for hundreds or thousands of employees.

Q5: Is employee data encrypted in ClearSlip?

Yes. Data is encrypted during transfer and storage. Role-based access ensures only authorized users can view it.

Q6: Is ClearSlip affordable for small businesses?

Yes. ClearSlip offers low monthly pricing with no lock-ins, making it suitable for startups and MSMEs.

Q7: Does ClearSlip generate compliance reports?

Yes. It provides audit-ready reports that integrate with accounting software like Tally, Zoho Books, and QuickBooks.

Q8: How fast is the payslip delivery process?

Payslips are delivered within minutes once payroll is finalized in FactoHR.

Q9: Does ClearSlip help with multi-state compliance?

Yes. It supports PF, PT, and ESI compliance across multiple states.

Q10: What kind of support does ClearSlip provide?

ClearSlip offers a dedicated HR manager (eHR) and fast support for payroll queries.