Payroll Management System • 2024

Automating salary processing for enterprise organizations.

A comprehensive enterprise payroll solution that automates salary processing, tax calculations, deductions, and disbursements for organizations. The system integrates seamlessly with loan management for automatic deductions and includes robust reporting capabilities.

Role
Backend Engineer
Company
Sidmach Technologies
Type
Multi-tenant SaaS
ASP.NET Core 7.0 C# 11 SQL Server 2022 Clean Architecture CQRS MediatR
MY ROLE AND SUMMARY

I led the backend development for this multi-tenant payroll system. The challenge was building something that could handle complex financial calculations across different organizations, each with their own unique payroll rules, tax structures, and deduction policies.

I designed the entire backend architecture using Clean Architecture principles and CQRS patterns. This meant separating business logic from infrastructure concerns, making the system maintainable and testable. I built the payroll calculation engine from scratch, implemented tax computation algorithms, and created a flexible deduction system that integrates with our loan management module.

The system handles everything from salary computation to bank API integration for disbursements. I also implemented robust audit trails for every financial transaction—crucial for compliance and financial reconciliation.

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(Determined/Let's build moment)

Key Achievement: Built a flexible payroll engine that processes salaries for 50+ organizations with 99.9% accuracy, handling complex multi-currency calculations and automatic loan deductions.

CHALLENGE, EMPATHY AND PLAN

How do you build a payroll system that works for every organization?

Payroll isn't just about multiplying hours by rates. Every organization has different policies, different tax brackets, different allowances, different deductions. Some have performance bonuses, others have 13th-month pay. Some deduct loans automatically, others don't.

The challenge wasn't technical complexity alone—it was building something flexible enough to handle this diversity while maintaining accuracy and speed.

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(Thinking/Problem-solving)

For HR teams: They needed something that "just works." No manual calculations, no Excel formulas breaking, no wondering if taxes were computed correctly.

For employees: They wanted clarity. See their payslip, understand every deduction, know when loans would be paid off.

The technical reality: We needed multi-tenant architecture, a rule engine for flexible calculations, accurate tax algorithms, bank API integration, and bulletproof audit trails. Oh, and it had to be fast—payroll runs can't take hours.

The core question: How do we build a system that's both flexible enough for customization and rigid enough for financial accuracy?

THE SOLUTION

Clean architecture meets financial precision.

I built the system using Clean Architecture with CQRS (Command Query Responsibility Segregation). This separation meant write operations (payroll runs, deductions) were isolated from read operations (reports, payslips), making the system both fast and maintainable.

The payroll engine: I created a rule-based calculation engine. Each organization defines their own rules—allowances, deductions, tax rates—and the engine applies them automatically. This meant we could onboard new clients without code changes.

Tax computation: I implemented PAYE (Pay As You Earn) tax calculations with support for different tax brackets and zones. The algorithm handles progressive taxation automatically.

Loan integration: Seamless integration with the loan management module. When payroll runs, outstanding loans are automatically deducted and updated. No manual intervention needed.

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(Coding/Working hard)

The backend systems powering payroll automation.

Backend Framework
ASP.NET Core 7.0, C# 11, Clean Architecture pattern, CQRS with MediatR for command/query separation.
Database
SQL Server 2022, Entity Framework Core, Repository pattern, Unit of Work implementation.
Multi-tenancy
Database-per-tenant isolation, Tenant context resolution middleware, Tenant-specific configurations.
Business Logic
Payroll calculation engine, Tax computation algorithms (PAYE, VAT), Automated loan deduction processing.
Integration Points
Bank API integration for salary disbursement, Leave management integration, Loan module integration, Email notification service.
Security & Compliance
Role-based access control (RBAC), Data encryption, Audit trail for financial transactions, GDPR compliance.

Visual breakdown of the technical implementation.

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Entity relationships and data structure.

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IMPACT AND LEARNING

Results that matter.

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Organizations
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Accuracy Rate
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Employees Served
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Time Saved

The system transformed payroll operations for our clients. What used to take days of manual work now happens automatically. HR teams can run payroll for hundreds of employees in minutes, with confidence that every calculation is accurate.

The multi-tenant architecture means we can onboard new organizations quickly. The rule engine handles their unique payroll policies without custom code. The audit trail has been invaluable for financial reconciliation and compliance audits.

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(Celebration/Success)

What I learned from this:

Financial systems demand precision. You can't have "mostly correct" calculations when money is involved. Every edge case matters, every rounding decision matters. Testing financial logic requires extreme thoroughness.

Flexibility vs consistency is a real tension. Building a system flexible enough for different organizations while maintaining consistency is hard. The rule engine approach worked, but it required careful design upfront.

Clean Architecture pays off in complexity. When building complex business logic, separating concerns isn't just nice—it's essential. CQRS made the system testable and maintainable.

Multi-tenancy is more than database design. True multi-tenancy touches every layer—from middleware to business logic to data access. Getting it right early saved massive refactoring later.