The payroll management process, in a nutshell, refers to the process of administration of a company’s employee’s financial records. This would include details of the employee’s salaries, incentives, bonuses, deductions, and net pay.

Payroll management can be outsourced, managed on our own or through software. But it is best when outsourced as it is cost-effective and saves time and money. Not to mention, the opportunity to closely work with the payroll specialists and financial experts who are well versed on the latest tax rules and compliances.

Here’s a list of tasks the payroll administrator needs to accomplish during payroll processing: –
– Develop the organisation’s pay policy that includes flexible benefits, leave encashment policy, and more
– Define payslip components – basic and variable pay, HRA, LTA, etc.
– Collect other payroll inputs from the transport service provider or the food/canteen vendor
– Arrive at the net pay by calculating gross salary and deducting the statutory and non-statutory sums
– Finally, release employee salary.
– File returns and deposit dues such as TDS, PF, and more, with respective authorities.

Statutory deductions are P IT (income tax), EPF (employee provident fund), TDS (tax deducted at source), ESI (Employees’ State Insurance) which are deducted according to the individual’s annual compensation and the state legislations.

An allowance is a fixed sum that a company may decide to pay its employees to cover additional expenses. For example travel allowance, overtime allowance, medical allowance, etc. All financial benefits that employer offers under the head “salaries” are taxable. Certain allowances are partially or fully exempted. Reimbursements are the amounts that a company pays back to its employees who may incur business-related expenses. For instance, many companies provide medical reimbursements where employees can claim the amount by presenting appropriate bills and proof of expenditure.

Payroll deadlines can cause stress levels to rise and if a problem occurs and payments are incorrect, then the midnight oil starts to burn. Payroll is a critical function, getting it out, correctly and on time can make or break a business. The impact of a delayed or incorrect salary payment run can be significant because overpaying, underpaying or not paying employees at all will result in knock-on effects that can rock a business to its core. Hence, it is better to outsource the service with experts.

Our payroll system is well-secured, and guarantees to protect your company data and employee information. With a robust security system in place, we do not compromise on the security of bank account numbers, addresses, pay rates, and other details required to process the payroll and tax forms.

Some of the common benefits that companies offer are medical reimbursements, health insurance, paid vacations, leave encashment programmes, wellness program fundings, etc. However, the statutory benefits as mandated by law are earned leaves; social security like ESI, PF, pensions, group insurance policies, maternity benefits; payment of gratuity, etc. These benefits differ depending upon the type of company and the state where it is located.

Some of the benefits from payroll outsourcing are:
– Access to the experience of experts
– No need to hire a full-time employee
– You no longer need staff cover when one of your payroll employees is on sick leave, holidays or in case of other absences
– Confidentiality and security of your payroll data.
– You reduce the time spent on routine and repetitive tasks.
Through outsourcing, your Payroll becomes easy and you can enjoy the peace of mind from knowing that the salaries are always paid correctly and in time.

This system is idle for a micro organization, where limited employees are working. Data resides in our own systems. You have to give us data in a simple template. Software will automatically calculate the payroll & generate the reports. Advantages are: Very cheap, Easy to use, IT infrastructure not required at your end.

Salary refers to the amount of payor remuneration which an employee earns. Payroll refers to the system employers use to process salary payments.