What is meant by Payroll ?

The list of employees who are getting paid by the company every month is known as Payroll.  It also means how much total amount of money the employer is paying to the employees.
On the basis of business function, it usually involves :

• Development of payment policy of the organization which also includes flexible benefits, and leave encashment policy.
• It includes defining of components of payslip like variable pay,
• It gathers different types of payroll inputs like, food vendor supply, amount to be recovered from employees for the foods and beverages consumed.
• It also calculates the actual gross salary of the employees, and the net pay.
• It helps in the realisation of employee salary.
• It helps to deposit dues such as TDS and PF .

So, usually the story revolves around the Net Pay of  the employees.
The formula to calculate net pay is :
Net Pay = Gross Income – Gross Deduction
Here,
Gross Income =  Regular income + allowance +benefit.
Gross Deduction = Regular deductions + one time deduction + statutory deductions.
Stages of Payroll Processing :
Payroll processing is an important job in any company so, the officer handling this has to do all the planning carefully. In a company there are many ongoing tasks going on that need proper attention and should be consistently monitored. The payroll processing stages includes :

1. Pre-payroll activities.
2. Actual payroll activities.
3. Post-payroll activities.

Pre – Payroll Activities :
In pre-payroll activities the total amount that is to be paid depends upon multiple factors. There are many policies in a company like pay policy, leave policy, benefits policy, policy for attendance, etc. In the first step, all the policies of the company need to be defined properly and then it should get the approval of the management to ensure and implement standard payroll processing in the company.
In the payroll process, one important thing is to interact with multiple departments. All the information is to be gathered and collected like, revision daata, mid – year salary attendance data, etc.
If the organization is small, then this data is being received from some consolidated sources. But if your organization is large, then, you will be using softwares for your work which will make your work more easier by providing you with some integrated features like :

• Leave and attendance record.
• Self service portal of an employee.
• Net salary.
• Previous Salary, etc.

Then, the next step takes its place of input validation. In this, after getting all the required inputs, data validity according to the company policy is being checked.  The main thing here is that no employee is missed out in this process.
Actual Payroll Activities :
This is the main step in payroll processing. In this step, the input data that is validated is to be inserted into the payroll system to process for the actual payroll. After deducting all the necessary taxes and deductions, the result that comes is the Net Pay of the employees.
Post – Payroll Activities :

In this process, all the deductions that are statutory are deducted at the time of payroll processing, for e.g. EPF, ESI, TDS, etc. Then the total amount is remitted to the respective government agencies.
Every company takes this process as an important process and keeps a record of all the financial transactions that are done in the company, as finance is an important matter according to the company basis.
Payout process can be done by any mode like, cash, cheque, or bank transfer. Mostly, organisations prefer to give their employees salaries through the bank account. The one important thing to make sure is that, after the payroll process is complete, the company needs to ensure that the company’s bank account should have sufficient funds to make the payment for salary transfer.

• The next step is to give a salary bank advice statement to the branch concerned with this activity.
• The statement that is issued contains particulars like, employee id, amount of wages, bank account number.
• If you want to apply for a payroll software then, just publish the payslips and then ask the employees to login to their respective accounts to access the payslips.

Another step under post- payroll activities is reporting.
When the payroll run for the particular month is completed  the finance team and high management team would request for reports regarding the payroll. So, your another job as payroll officer is to provide them with appropriate data regarding different departments and their salaries.
Now, let us discuss some of the challenges regarding the payroll services.
Challenges in Payroll Processing Management :

• Requirement to stay as statutory compliant.
• Difficult to manage multiple input sources.
• Needs to be accurate.

Methods for Payroll Services :

• Payroll processing based on excel: It is used by small businesses as they have a handful of employees. It has some limitations :

1. Increases chances of mathematical and clerical errors.
2. Difficult to handle.

• Outsourcing of payroll services: It means hiring another agency for doing this job. The problem is that all the data regarding the company’s finances may be leaked.
• Using payroll processing software ( Recommended ) : It is recommended because it is easy to handle and all the information regarding the company’s finances remains within the company only in the safe hands.

But, if you have no problem in outsourcing payroll services the these are the top companies providing best services :

Outsource 2 India : Payroll
It is a reputed company which provides the following services :

• Payroll compliance services.
• Payroll Administration services
• Payroll Data Analytics services.
• Payroll reports.
• Tax returns.
• Time system.
• Attendance system.

So after looking the different services, if you wish to visit the site, just click on the link below :
https://www.outsource2india.com/financial/payroll-processing-service.asp
Vee Technologies :
This is also a reputed company offering all types of payroll services, some of which are :

• Payroll compliance services.
• Payroll Administration services
• Payroll Data Analytics services.
• Payroll reports.
• And many more.

If you liked this site then, click on the link given below to have a glance of the website :
https://www.veetechnologies.com/services/finance-and-accounting-services/payroll-processing-services.htm

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