Handling and managing an individual’s time and attendance to prepare payroll manually is a very difficult and time consuming process. Paysquare has made this process easier. Many companies are increasingly relying on us for the past 15 years to calculate employees’ salaries accurately and quickly.
Not just existing set of employees but new employee orientation should be managed in an efficient manner. Take efforts to understand that every employee is a different and separate individual (often with very different job responsibilities), so a common approach won’t work either. While most employees will receive almost the same information, some pre-planning on can help to smoothen the process to make it more beneficial for everyone involved.
The very first step after hiring employees is to start their payroll process. There are a number of employee details such as, but not restricted to:
- Employee’s full name
- Address for correspondence
- Personal information (Birth date, gender, PAN)
- Previous salary slips
- Previous company relieving letter
- Signed offer letter
These details are required to initiate the following process:
- Determine monthly/annual salary and other benefits
- Deduct taxes according to individual tax slabs
- Deposit the tax collected with the IT Department
An efficient payroll management process is the only way to ensure accurate and timely payroll, fair benefits and compensation packages. According to the process, once the above information is collected, the next steps are immediately taken care of. The actual process may differ from company to company depending on their policies for the work culture.
Here is some simple steps given below about payroll processing:-
- Payroll should always be processed ahead of time. Create a payroll-processing timetable that enables you to have sufficient time for processing the payroll and to rectify errors before employees receive their paychecks.
- Modify the employee payroll record, if necessary. This should comprise of change in address; deduction in payroll or changes in income tax slab as well as voluntary deduction changes, for early retirement or health benefits.
- An increase in salary, or bonus and commissions or even payment arrears need to be considered in case of existing employees. There are also different adjustments including additional payment or deduction in salaries due to overpayment or underpayment for an earlier period. In such cases salaries of the employees need to be prorated. In some instances their term finished and they do not work the entire pay period, you need to stop future payments.
- Have a system of printing reports. This will help you verify the payroll before actually printing paychecks. If required make adjustments as applicable. This does not stop here as you need to now contact your bank. Check with them if they have received the payment and verify the amount as well.
- Update your payroll registers to reflect employee’s gross-to-net wages for the current payroll. Make sure it is stored in a confidential area. These records will need to maintained for a minimum of three years. On the other hand, all records of time-keeping and wage computations should be save for a minimum of two years.
- Other departments such as HR and Finance may need printed reports for benefits administration and reconciliation purposes. Make sure you have a copy ready for them.
All these may seem like a hassle to carry out in-house so it is wise to consider outsourcing your payroll needs.