Get Payroll
Training from HR Payroll Training Course Institute
Payroll is the only source of the income
for the employee for works for the company, a mistake in payroll can happen in
a quick manner then you think if employee does not get salary on time or you
are not able to pay salary accurately so such type of irregularities can
destroy the morale of the employee and can also decrease the productivity of
the company. If you want timely and accurately salary then you have to follow
rules and laws like labor law, PT, PF, and other laws. If a company does not
follow these laws and rules then it can adversely affect the company and
consequence. If you want your employee remain happy and the company should be
free from any complaint then you should understand the meaning of payroll and
how it’s work.
What is the Meaning of Payroll?
Payroll is a list through which employees
get their salary paid by the company. According to HR Payroll Training Course Institute, it also refers to the total
amount of the money which employer has to pay to the employee who has worked
for their company or for the organization. In a business function, it includes:
- Development in the pay policy
of the organization which includes the leave encashment policy, flexible
benefits and many more.
- Defining components of payslip
such as variable pay, basic, LTA, and HRA.
- You can also gather other
inputs of payroll.
- The calculation of actual
salary after the deduction of the statuary and no statutory then pay net
salary.
- Paying an employee salary.
- Depositing dues with
appropriate authorities and filling returns such as PF, TDS, and many more.
Stages in Processing of Payroll
While preparing payslip payroll officer
should be careful with planning, as there is some task which needs constant and
proper attention like to monitor changing, contribution to social security,
etc. As per HR Payroll Training CourseInstitute review, the whole process of payroll is divided into three
sections such as pre-payroll, actual payroll, and post payroll activities.
Pre Payroll Activities
Defining payroll policy
The total amount to be paid gets affected
by many factors, with the different policies of a company like leave and
benefit policy, attendance policy, and pay policy etc. As this is the first
step it should be well defined and approved by the management.
Gathering Inputs
In the process of payroll, it interacts
with the multiple personal and other departments; this can include information
such as attendance data, mid-year salary revision data, etc.
Input Validation
If you received input then you have to
check the validity of the data concerning which are according to company
policy, right formats, authorization of matrix etc. In this, you should also
ensure inactively and no active employee included in the list.
Actual Payroll Process
Payroll Calculation
At this step, the data which is already
validated input into the payroll for processing of the actual payroll system,
then it causes result in the net pay after deduction of taxes and other
deduction. Once the process of payroll is over you can reconcile the values and
verify to avoid any error.
Post Payroll Process
Statutory Compliance
In this you deducted all the statutory such
as TDS, ESI, EPF are deducted at the time of payroll process, the company
remits the amount of the government agencies.
Payroll Accounting
Every company and organization keeps the
record of all the financial transaction, salary is the paid cost which is
mentioned in the account book.
Pay-out
In this, you can pay a salary by cash,
cheque, or by bank transfer. And now most of the company provide a bank account
for their employee in which they transfer their salary directly into bank
account.
Reporting
If you have a complete run of the payroll
of the particular month, then a team of high management asks for the report, as
you are payroll officer it’s your duty to dig into the data and report the
information.
Various Methods for doing Payroll for your
Business
The options for running payroll are:
- Payroll management based on
Excel
- Payroll outsourcing
- Using software for payroll
Excel based Payroll Management
Most of the business
that is at the starting stage of the operation and has a small amount of the
employee generally opt excels based payroll management. In this payroll, the
calculation was done in the excel sheet in which they use the standard
calculation template.
Payroll Outsourcing
If an organization or company does not have
a dedicated person for payroll then they opt for this option in which the
company wants an external agency which will take care of your company payroll.
Payroll Software
If you want that successful running of
payroll then for this you have to ensure that inputs of payroll are coming from
every source in a seamless manner and in timely. In the market, there is much
software available for payroll management.
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