Payroll mistakes can happen faster than you think. For a moment, think about the employees for whom monthly salary is the only source of income. Imagine what if the salary is not paid accurately or there is a delay in releasing salary. Such irregularities can take a toll on the morale of the employees and ultimately affect the business productivity Payroll Management While ensuring accurate and timely payment of salary is important, adhering to the various laws and regulations such as labor law, PF, PT and other statutory compliance is also critical. Non-adherence with these laws can attract serious legal and financial consequences. To make sure that your employees are happy and you are law compliant, you need to have a proper understanding of what payroll is and how to run payroll effectively. We will start with the basics of payroll. applications in the centralized system. Our Consultancy-services Consultancy-services.
Payroll is a list of employees who get paid by the company. Payroll also refers to the total amount of
money employer pays to the employees. As a business function, it involves:
1. Developing organization pay policy including flexible benefits, leave encashment policy, etc.
2.Defining payslip components like basic, variable pay, HRA, and LTA
3.Gathering other payroll inputs (e.g., organization’s food vendor may supply information about the
amount to be recovered from the employees for meals consumed)
4.The actual calculation of gross salary, statutory as well as non-statutory deductions, and arriving
at the net pay
Releasing employee salary
5.Depositing dues like TDS, PF, etc. with appropriate authorities and filing returns
A payroll officer needs to do careful planning. There are always ongoing tasks that need attention and a constant need to monitor changes to withholdings, contribution to social security funds, etc. The entire process can be split into three stages, pre-payroll, actual payroll and post payroll activities.