Payroll process refers to the maintenance of the employees’ financial records with respect to salaries, wages, net pay, tax deductions, incentives and other statutory requirements like PF and ESI. Paying on time to your employees with no delays increases the morale of your company while reflecting the company’s financial stability, thereby leaving no legal implications. Hence, an e-payroll system is essential for every organization alike – startup, medium-sized or large-scale.
An effective payroll process involves a robust payroll system, compliance with payroll laws and labour laws as well. Some of the reasons why a business needs a complete Payroll Management in place are:
Easy Tax Filing And Reports:
Under the Income Tax Act, every salaried individual is liable to pay taxes as prescribed by the State and Central governments depending on the salary and exemption limit. A payroll software regularizes and avoids any mismanagement of taxes that could leave workers paying penalties. It takes care of all the compliance and statutory requirements which benefit the company in filing the taxes easily.
Economical And Time-Saving:
Usually, payroll software are designed to integrate with the existing accounting system, and hence organisations can save time and money on calculating large amounts of data. Also, some advanced versions have the provision to forecast and plan budgets that companies spend on each employee.
As every individual’s compensation, including salary, incentives, bonuses are built into the payroll system, it becomes simpler for companies to evaluate the employee’s performance during their time of appraisal cycle.
In addition to fulfilling its financial obligations, a company must also ensure to maintain adherence to all the country’s tax obligations and labour compliances like TDS, ITR, ESI, PF, etc. This enhances an organization’s reputation as a stable employer and also helps in increasing the brand proposition.
How Payroll management done?
Designing CTC Structure
Tax Planning For Employees
TDS Deduction And TDS Compliance
Setting Up Of Reimbursement
Drafting Employment Agreement
Drafting HR Policy
Drafting Leave Policy
Planning Increments And Appraisals For Employees