Payroll related mistakes can happen faster than one can think. For the moment, think about the employees for whom the monthly salary is the primary source of income. Imagine, if the salary is not paid accurately or there is a delay in releasing salary. Such irregularities in a Payroll report can take a toll on the morale of the employees and ultimately affect business productivity.
While ensuring the accurate and timely payment of salary is important, adhering to the various laws & regulations such as labor law, EPF, PT, and other legal compliances. Non-adherence with these laws could attract all serious legal and financial consequences for Payroll service providers and also companies.
In a Payroll report, one needs to make sure that the employees are happy and one is compliant with all the laws, you need to have a proper understanding of what payroll is and how to run payroll effectively
What is Payroll?
Payroll is a list of employees or staff members who are paid by the company or business. Payroll also refers to the full amount of money an employer pays to the employees. As a business function it has:
- Developing organizations also pay policy which includes benefits, such as policy for leave encashment, etc. for Payroll processing
- Defining the pay slip components like variable pay, basic pay, HRA pay, as well as LTA, is essential.
- Gathering other payroll inputs like food and other miscellaneous costs.
- The actual calculations of gross salary, CTC, and all other statutory as well as non-statutory deductions, and finally arriving at the net pay for Payroll processing.
- Timely Release of employee salary.
- Depositing dues like PF, TDS, on time with concerned authorities and submit returns for the same
In Advance Reporting Structure one can say that this process needs to deal with what is to be paid to the employees or workers which is known as ‘net payment’ after adjustment of all the taxes as well as deductions.
Types of payroll reports
- The main Payroll Register:
The Payroll register report provides payroll register information by date, similar to what is called Employee Pay Inquiry in Payroll processing.
- Compensation Analysis:
In the Payroll Reporting Structure, compensation analysis provides a comparative analysis of all compensation for more than one user-defined period.
- Salary Analysis:
Salary analysis report in Advance Reporting Structure provides a detailed analysis of the current salary structure for all employees
- Pay Type:
Pay type report in Payroll Reporting Structure provides an analysis of specific forms of compensation like Overtime & Bonus.
- Deduction Type:
Deduction type report provides a detailed analysis of different forms of deductions
- Tax Type:
Tax type in Payroll Reporting Structure provides an analysis of specific forms of taxes
- The main Payroll Register:
What payroll reports are important for your business?
A payroll officer of an organization needs to do careful planning. There are always some ongoing tasks that need attention and there is always a constant need to monitor changes to withholdings & contribution to social security funds, etc in Advance Reporting Structure. The entire process of Payroll report can be divided into 3 pieces or stages which are
2) actual as well as post payroll requirements.
What is payroll policy?
It is the amount that can be affected by endless factors. A company’s policies like leave, pay policy, and benefits, attendance policy, etc. come into the picture at the time of rolling Payroll Reporting Structure. At the first stage, such a policy needs to be extremely well defined and needs to approved by the management to ensure that standard payroll processing in Advance Reporting Structure happens.
Payroll Reporting Structure process primarily involves interacting with multiple departments and personnel. There could be information like yearly salary appraisal data & employee attendance data etc.
In smaller organizations or companies, Payroll report inputs are received from consolidated sources. But, in larger organizations, the task of gathering all the data might get too overwhelming. Payroll service providers use smart payroll software that may have integrated features like casual/sick leave and attendance management, employee service portal.
In a Payroll Reporting Structure, once inputs are received, one needs to check for validity of the data concerning that all laws or regulations are followed according to company policy. Through efficient Payroll management one also needs to ensure that no active employee is missed out and that no inactive employee info is included while processing salary payment. And these need to be updated with advanced reporting structure.
The actual process of payroll and its calculation
As far as the Payroll report is concerned the main part is the system that validates the data feed to it. The final result is that the net pay after adjusting all necessary taxes and other TAX deductions. In Payroll management, once payroll processing is over one should reevaluate the values and verify for accuracy of the data to avoid any errors.
Post-payroll process and compliance
As a part of this process, all standard deductions that include TDS, EPF, ESI need to be deducted while processing the same. It is handled by Payroll service providers. The business can offer a credit of the amount to the respective government agencies. The frequency of that can vary depending on the types of dues. In most cases, the payment of dues is made via e-challans or physical challans. After payment of all the required dues, a concerned report is submitted.
Every organization needs to maintain a record of its financial transactions. Salary is the significant operating costs, Payroll service providers need to report the books of accounts. As a part of payroll management, it is essential to see that the data of salary as well as other reimbursements are properly fed in the system.
Every organization or company needs to keep a record of all its financial transactions by keeping a Payroll report. Salary paid is one of the significant operating costs, that needs to be mentioned in the official account books. As part of the Advance Reporting Structure, it is essential to check that all necessary salary and reimbursement info is fed into the accounting /ERP system.
Salary to the employees can be paid by any of the modes of payment in this era. Typically Payroll processing companies carry out the process as per which the employees can have their salaries in respective accounts. Once the complete payroll system is in place one needs to ensure that companies with a bank account have sufficient funds to make the salary payment. Then one needs to send a bank advice statement to the concerned branch. The salary statement is issued with particulars like staff id or employee id. Bank name and account number, amount of wages etc data are kept by Payroll service providers. If one is opting for payroll software that has an employee self-service portal, one could quite easily publish the salary pay-slips of staff.
Once the complete Payroll report for a particular month is finished, finance and higher management team could ask for the reports such as department wise employee cost. And also employee cost as per location, etc to get the info and extract the need information which can help to create reports.
Statutory compliance for Indian payroll
The moment one runs a payroll service, they need to take care of paying all the wages to the staff, as per the provided employment guidelines or regulations that are set by the central and state legislation. One needs to keep a check that he follows the most statutory requirements that apply to Indian businesses or enterprises. One needs to follow minimum wages provisions, payment of OT, deduction of TDS and employees as well as the company’s contribution to various schemes for social security.
Advance Reporting Structure
While computing the salary one needs to consider all these deductions and contributions. Income tax is one assessment that needs to be done by the Payroll manager.
Challenges in handling payroll management process- The payroll process used by Top Payroll companies is quite challenging due to two main reasons. Today one can find some advanced payroll software that processes the payroll automatically and that too with the compliance of laws. So, Advance Reporting Structure should include all the details of Statutory Compliances.
Input sources for payroll: Before payroll can be processed one needs to check various sources such as attendance and leave register from which the data can be extracted. Through Payroll Reporting Structure HR as well as payroll executives know how to handle it on excel also but it can be a little challenging to handle vast data and also not much accurate compared to the payroll process.
Various methods available to do payroll for your business
The possible options for running payroll can be-
- Payroll management with excel
- Payroll outsourcing
- Using payroll software
- Excel-based payroll management
Many companies which are at an intermediate stage and have a few employees, usually go for excel based payroll.
Payrolls with excel support usually involve doing calculations using excel sheets which is easy to use the template. The formulas in excel help clients that help the Payroll service providers do the computation. While this method is economical, but it has its inherent limitations like:
- There are quite high chances of clerical and mathematical errors because data is entered manually
- Difficulty in adding and removing staff or employees from the payroll list
- There is a high chance of data that is duplicated
- Also, one needs to monitor tax revisions and other changes in PF, PT, etc.
As mentioned above, to run a payroll well, Advance Reporting Structure needs to be implemented to make sure that the payroll inputs are availed from all the legitimate sources and offering accurate required for the same. The intent of using software is to reduce the friction in getting the inputs. There is also payroll management software with advanced features to offer quick and accurate computation. They also serve as a single leave and attendance management, portal for employees as well as HR management.
Find the right payroll system
Nowadays one can find an automated system of payroll that can ease the task and save lots and lots of time. It helps in quick and accurate processing which can help the authorities as well as workers and management. There are important features that one must focus on while going for the making of payroll software.
Easy operation: At times the Payroll function can be challenging. Payroll service providers use a system of comprehensive workflows. However, in case the software is self-explanatory, it can reduce the need for guidance as well as training. Also, make sure that the software provider is providing well-updated documentation so that one assess the situation
Scalability: As organization size increases, payroll management software also needs to serve the organization appropriately. The limitation can be in terms of employee data it processes or in terms of the availability of features like leave and attendance management.