What is Payroll Management system?
The Payroll Management System manages the financial part of employee’s salary, deductions, gross pay, allowances, net pay etc. and generating the pay-slips for a particular period.
The major benefit of the Payroll Management System, it’s easy to implement. Other favorable advantages of the Payroll Management System are its reports and extensive features.
Payroll Management System has the power to:
- To Manage Employee Information Accurately.
- To Define the deductions, Compensation, leave etc.
- To create Pay-Slip at the ease of a mouse click.
- To Generate and Manage the Payroll Processes according to the Salary Structure appointed to the employee.
- To produce all the Reports related to attendance/leave employee, payroll etc.
- To maintain your own Security
The Stage payroll process
A finance officer needs to do careful planning. There are continually ongoing tasks that need consideration and a steady need to monitor changes to withholdings, contribution to social security funds, etc. The entire procedure is split into three stages-
- actual payroll and
- post payroll activities.
- Pre-payroll activities
The organization’s various policies likewise leave, pay policy and benefits policy, attendance policy, etc. become possibly the most important factor around then. As a first step, such strategies should be well defined and get approved by the administration to ensure standard payroll processing.
- Actual payroll process
At this stage, the approved information is sustained into the payroll system for actual payroll processing. After adjusting the necessary taxes and other deductions that the outcome is the net pay. When the payroll process is finished, it is always a decent practice to reconcile the values and verify for accuracy to avoid any errors.
- Post-payroll process
Statutory Compliance- All the statutory deductions like EPF, TDS, ESI are deducted at the preparation of payroll. The company then remits the respective amount to government agencies. The frequency can be depending on the type of dues. In most of the cases, dues payment is made via challans. After the all contribution paid return/report are documented. like, for filing PF return, ECR is generated and filed.
Every association keeps all its financial transaction records. Salary paid is one of the important operating costs which has to be recorded in the books of accounts. Being the part of payroll management, it is fundamental to check that all reimbursement and salary data are maintained accurately into the accounting/ERP system.
Generally, all the Companies provide employees with salary bank account. otherwise, they can pay salary by cash, cheque or bank transfer. Once the completed payroll, you just need to assure that the company’s bank account has sufficient revenue to make the salary payment. Formerly, you need to send a salary bank statement to the related branch. This statement is issued employee id, bank account number, amount of wages, etc., with particulars. If you decide for payroll software for the employee self-service portal, you can easily publish the payslips and after that employees also can be log-in, to their account and access the payslips.
Whenever you finished the payroll process for a specific month, finance and high management team may request reports like department wise- employee cost, location wise- employee cost, etc. As a finance officer, it becomes your responsibility to dive into all the data and extract required all information and share the reports.