Employees are no doubt the backbone of any organization and it becomes important to take care of their requirements. It is important to enhance their performance, make them technologically advanced, and pay their salaries on time. It is always good to keep a track of the employee performance and data so that no confusion is established in the later stages.
However, it is not possible to keep a track of all the details manually and that is where payroll management software steps in. In simple terms, payroll refers to the list of employees being paid by the company. However, when in a business setup, an online payroll system involves the following features.
- Calculation of gross salary and arriving at the net pay.
- Keeping a track of statutory as well as non-statutory deductions.
- Release of the employee salary.
- Preparation of an organization pay policy. This will include a leave encashment policy and flexible benefits.
- It involves depositing dues like PF, TDS, etc. along with appropriate authorities and filing returns.
- Collection of payroll inputs and defining payslip components. These components may include HRA, LTA, basic, and variable pay.
The process of payroll can be divided into pre-payroll, actual payroll, and post-payroll activities.
Initially, the payroll policy needs to be defined that includes factors like benefits and leaves, attendance, pay schedule, and much more. These policies need to be well-defined and approved by the management. Apart from this, it is also necessary to gather inputs and interact with various departments and personnel. Attendance data or mid-year salary revision data can be included in this process.
After receiving the inputs, there arises the need for checking the validity of data. The data must adhere to the approval matrix, right formats, and company policy. Make sure that no employee is missed out on the list.
Actual Payroll Process
Once the validated input data is fed into the payroll system for actual processing, the net pay is calculated by the online payroll management system by properly adjusting the deductions as well as the taxes.
It is important to look for some of the best payroll management software in India to accomplish your tasks with full safety and smoothness.
Once the actual processing is done, the salary can be paid by cheque, bank transfer, or cash to the employees. It is a must that there should be sufficient funds in the organization’s bank account to facilitate salary payment. Apart from this, statutory compliance also needs to be taken care of along with the financial transactions.
Further, the payment needs to be made according to the employment norms set by the central and state legislation. It is necessary that you stay updated on the developments and changes that are being made on tax and payroll policies. To boost the performance of your company and the workers, you need to keep a check on the modifications that are being made and handle the situations accordingly. In addition to this, the reports need to be shared once everything is done. Look for professional payroll management software in India to allow your company for better salary management.