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Features Resources
What is Payroll Management?
Payroll management refers to the process of administering and managing the financial aspects of employee compensation within an organisation. It involves calculating, processing, and disbursing payments to employees for their work, as well as handling various payroll-related tasks.
Effective payroll management is crucial for maintaining accurate financial records, complying with tax regulations, and ensuring employees are paid correctly and on time.
Efficient payroll management ensures that employees are compensated accurately and on time, helps maintain compliance with legal requirements, avoids financial penalties, and fosters employee trust and satisfaction.
What is the Process of Payroll?
- Defining Payroll Policy: Establishing the bank’s policies during the payroll procedures is necessary. Before these policies can become standards, the management must approve them. policies such as those pertaining to pay, attendance, leave, benefits, and other topics.
- Gathering Inputs: The inputs are gathered from various departments to ensure the accurate calculation of the payroll.
- Input Validation: It is necessary to verify the validity of the data once it is gathered as a minute mistake can ruin the entire payroll process.
- Payroll Calculation: Validated input data is fed into the payroll system for actual payroll processing. The result is the Net pay after adjusting the necessary taxes and other deductions
- Statutory Compliance: The payroll administrator needs to religiously adhere to statutory compliance. There are various statutory deductions like EPF, TDS, and ESI is deducted during the payroll processing.
Payroll Accounting: It is mandatory for all organisations to uphold a precise book of accounts and to record the salary paid for each significant entry in the books of accounts.
Payout: After complying with the steps above the salaries can be finally paid in cash or cheque or via bank transfers.
Report: Lastly, prepare an accurate report, including details like the department’s or location’s employee costs.
How is Employee Tracking Software Helping it?
Using employee tracking software provides all the relevant data required to calculate payout such as:
- – Leave and Attendance data
- – Working hours for contractual employees
- – Distance travelled reports for field employees
- – Expenses and reimbursement calculations