Payroll processing could be defined as the process wherein the organization pays their employees.these steps include gathering the employee data like their Time-in and time-out in the office premises for a selected time period, managing benefits & deductions and paying the wages for that time period.
Explaining about the process of how payroll is done can vary from organizations to organizations there are some pre measures needed to adopt while processing of payroll also known as salary processing.lets just look at the structure through which it can be simple to digest and the sub steps followed in each of the headers.
1. Pre-payroll process:
This is the initial step the HR(Payroll administrator) has to follow where the structure is prepared so as to enable the processing in the laid format.
a. Defining the policy:
An organization in view of not only Payroll processing through a software is required to have a fair policies made and signed by the management in lieu of attendance,leaves etc but also applicable for the organization who practise processing by other means will not just make the mistakes but those mistakes would also not be having a clue on same which will leads to go the things haywire.
b. Gathering Input Data:
Once the structure is designed the HR must look out for the data to be filled against the system for these they have to coordinate with the different departments where there may be changes in the wages for the reasons like increment in the mid year,or incentives achieved by employees on completion of target as processing is the internal part of the organizations. but these have become easy due to other supporting modules like attendance,leave,and the Employee self Service page so now there is no running behind the managers for approval is required it is accomplished by the help of these advanced features.
c. Verifying the Input data:
This is to check whether the data entered verifies all the policies followed,to check that all the employees are included which are liable for salary and excluding which are no more the part of the organization.
2. Actual Payroll process:
This includes actual validation put forward for processing of payroll.this is a result in the net salary that is after all the statutory deductions are being made.it is always feasible to check the data to be sure for the data and the assurance on the results.
3. Post Payroll process:
This is the final process where we are able to drive the data that is the employees who falls under the ESIC,PF,TDS can be driven then the administrator can submitted to the government with the payments.it may varies as per the due period of the levid,accordingly the system generates the report which is verified and thus useful for future reference as well.
4. Payment:
This is crediting or transfering the salary in the employees bank account,or the mode of payment which has breached by consent of both parties,
5. Generation of Report:
The reports are generated once the processing is done and the best part of using the software is the dual report generated that is the Net salary statement, the gross salary payment & the combined.As the account department has to file the salary statement for the taxation and other legal purposes.
We hope that we have bring out a clear understanding of payroll processing in simpler terms and through help of diagram,so one can now easily do processing through a software.we HRMantra has designed the payroll module taking in consideration all the aspects that are in line of the process and it can adapt to changes in respect of any laws,or tax rate by the government as it keeps on updating.
