Payroll Management Service

Payroll Management 

Pay errors can happen faster than you think. Think for a moment about the employees for whom monthly salary is the only source of income. Imagine what if the salary is not paid accurately or if there is a delay in the release of the salary. Such irregularities can damage employee morale and, ultimately, affect the productivity of the business.

While it is important to guarantee accurate and timely payment of wages, it is also essential to comply with various laws and regulations such as labor law, FP, PT, and other legal provisions. Failure to comply with these laws can have serious legal and financial consequences.

To ensure that your employees are satisfied and that you are in compliance with the law, you need to understand what payroll is and how to manage payroll effectively. We will start with the basics of payroll.
Payroll is a list of employees who are paid by the company. Payroll also refers to the total amount the employer pays to employees.

You would like to read: What Is Payroll Management & How To Manage Payroll.

As a commercial function, it involves:

• Development of organizational compensation policy, including flexible benefits, leave collection policy, etc.
• Define payroll components like base salary, variable, HRA, and LTA
• Collection of other payroll inputs (for example, the organization's food vendor can provide information on the amount to be recovered from employees for meals consumed)
• The actual calculation of gross salary, statutory and non-statutory deductions, and arrival at net salary
• Employee salary release
• Deposit due as TDS, PF, etc. to the competent authorities and filing of declarations
• In short, we can say that the payroll process involves arriving at what is owed to employees also called "net wages" after adjusting for taxes and other necessary deductions.

Different methods available to pay your business

Possible options for performing payroll can be:

• Payroll management based on Excel
• Payroll outsourcing
• Use payroll software
• Payroll management based on Excel

Many companies that are in the initial stages of their operations and that have a handful of employees generally opt for payroll management based on Excel.

Payroll management based on Excel involves making the payroll calculation on Excel sheets using a standard payroll calculation model. The mathematical formulas are defined to help the payroll officer perform the calculation. 

Although this method comes at no cost, it has its inherent limitations like

1. High risk of writing and math errors when entering data manually
2. Difficulty adding and removing employees from the payroll
3. Risks of duplicate data and omitted entries at certain times
4. Need to monitor tax updates and other statutory changes like PF, PT, etc.

For more detailed information and for all the services related to payroll management, corporate branding, corporate management, human resource management, and other service-related information you may like to visit www.eminencei.com.