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Payroll Management

A payroll management system handles all employee financial records like salaries, bonuses, deductions and net pay. It develops pay policies, defines pay components, gathers payroll inputs, calculates gross and net pay, and releases salaries. Key features include accuracy for various work hours, deductions for taxes and benefits, and record keeping to streamline the payroll process. The system manages all aspects of paying employees and filing taxes, including calculating wages, withholding taxes and deductions, printing checks, and paying government taxes. It helps ensure statutory compliance, payroll accounting, payouts, and reporting.

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245 views7 pages

Payroll Management

A payroll management system handles all employee financial records like salaries, bonuses, deductions and net pay. It develops pay policies, defines pay components, gathers payroll inputs, calculates gross and net pay, and releases salaries. Key features include accuracy for various work hours, deductions for taxes and benefits, and record keeping to streamline the payroll process. The system manages all aspects of paying employees and filing taxes, including calculating wages, withholding taxes and deductions, printing checks, and paying government taxes. It helps ensure statutory compliance, payroll accounting, payouts, and reporting.

Uploaded by

samruddhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Payroll Management

INTRODUCTION
A payroll management system is a tool - predominantly a software program - that enables your business to
handle all your employee's financial records in a hassle-free, automated fashion. This includes employee's
salaries, bonuses, deductions, net pay, and generation of pay-slips for a specific period.
Payroll is a list of employees who get paid by the company. Payroll also refers to the total amount of money
employer pays to the employees. As a business function, it involves:
Developing organization pay policy including flexible benefits, leave encashment policy, etc.
Defining payslip components like basic, variable pay, HRA, and LTA
Gathering other payroll inputs (e.g., organization’s food vendor may supply information about the amount to be
recovered from the employees for meals consumed)
The actual calculation of gross salary, statutory as well as non-statutory deductions, and arriving at the net pay
Releasing employee salary
Depositing dues like TDS, PF, etc. with appropriate authorities and filing returns
FEATURES
Accuracy
Your payroll system must be able to accommodate your employees and their various working hours
Deductions
Payroll systems do not simply record work hours and pay. They must be set up for more complex
operations, such as deductions for tax and benefits purposes
Record-Keeping
Another feature of a payroll system is that it can be used to keep detailed and accurate records.
Streamlining
An automated payroll system can help eliminate busywork by streamlining the whole process of
scheduling, record-keeping and payment.
workS
Payroll systems manage everything having to do with the process of paying employees and filing
employment taxes.
They are put in place to keep track of worked hours, calculating wages, withholding taxes and other
deductions, printing and delivering checks and paying government employment taxes.
ACTUAL PAYROLL PROCESS
Payroll calculation
POST-PAYROLL PROCESS
Statutory compliance
Payroll accounting
Payout
Reporting
benefits of the system
1) EMPLOYEE MORALE
An important part of keeping employees happy is paying them on time.
2) COMPENSATION
Payroll goes beyond an employee’s salary.
3) REPUTATION
4) GOVERNMENT REPORTING
A payroll system helps companies comply with tax and employment legislation
5) FOLLOWING LABOR LAWS
Understanding labor compliance is another way to make sure your company has happy employees and is following local and
federal laws
6) PAYING TAXES
Challenges to the system
Compliance Management
Time-Consuming Payroll Configurations
Safety and Security Concerns
Dependence on Multiple Payroll Input Sources
The Burden on Payroll Team

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