Planning a key for Payroll processing as it involves several simple to complex procedures to process payroll successfully. The payroll process is segregated into three stages
Every company is different so the policies. The net amount to be paid will be determined by the payroll policies. So, one must build the policies like benefits, attendance, pay policy etc to ensure the standard payroll processing.
The payroll procedure involves in interacting the multiple departments in the company for the attendance and salary revisions data. Big organizations generally use Payroll processing software or connect with the payroll processing service providers to avoid mess.
After receiving the data from the departments, it is must to validate the concerned data to avoid any miss outs and to ensure accurate processing.
After validations in pre-payroll processing, the actual payroll processing will start. The net pay will be generated after tax and other deductions. Timely verification at each step avoid any errors.
All the statutory deductions like ESI, EPF and TDS are deducted at the time of payroll processing. Later the concerned company will remit the same to respective agencies under government. Most of the times the payments are made via challans.
Every organization maintain a record on all the transactions. The operational costs will be noted and reported in the concerned accounting books. The salary reimbursement data should be noted accurately into the accounting books or software used.
The payment of the salary can be done via Cash, Cheque or bank transfer. The organisations can provide a salary account to the employees. And company should ensure the funds in the concerned salary account to automate the salary processing’s. Companies having the self-service portal can send across the payslips with ease.
Reporting to the high management team after rolling out the payroll for a particular month ends the process of monthly payroll. The payroll officer is responsible to extract and share the processed information and reports accurately.