What is Payroll?

We see a lot of Small business and startups who require management with salaries, new joiners, manage absentees, generating payslips, In today's post let us understand a brief on what is payroll?

Payroll is the sum total of all compensation that a business must pay to its employees for a set period of time or on a given date. Payroll is usually handled by Human resource department or Accounts department in a usual scenario.

Payroll processing involves the following broad steps:

1. Update data of new Joiners.
2. Update data of Resigned employees
3. Update Salary increment data.
4. Update changes in employee information.
5. Update Loss of Pay or Working Days.
6. Attendance details.
7. Process Payroll.
8. Generate Salary Register.
9. Salary transfer.
10. Distribute Pay slips.
11. Update Payroll data in accounting software.
12. Generate PF, PT, ESI and IT reports.
13. Make payments to PF, PT, ESI and IT departments.
14. Generate other MIS reports.

Accurate and timely management of compliance practices are required for every business and every payroll professional. This is especially crucial for businesses to avoid costly complaints and government investigations and penalties.

Payroll services can be outsourced to auditors or other independant HR Firms to do these services at a cost. However In the Next post i will explain benefits of using a payroll Software, to ease the process of Payroll in your organization.