“Payroll” is one of the key concerns of organizations, and it isn’t a thing to wonder why Payroll Department of utmost importance. You can say that the payroll department is responsible for handling some of the most critical operations and maintaining highly secured information. Roughly, on a bigger picture, the payroll department is responsible to compensate all employees working in an organization, on time, for their services within a stipulated time frame. However, there is more to define their roles. Let us review further some chief challenges for payroll department and their solutions…
This entire process involves collecting, reviewing, analyzing and using correct information about compensation, fixed or hourly rates, regular or part time schedules, overtime remuneration etc. This includes verification of bonuses, salary revisions, deductions for paid/ unpaid leaves and balancing the leave structure and more. Tax calculations, medical/ travel/ food reimbursements etc. are performed at this step to draw the final figure for pay-out. Payroll processing is finally concluded after initiating direct deposits or cheque distribution to employees and then generating payroll reports for the same.
When such complex tasks are performed manually, there follows a risk of errors and miscalculations. But, this can be effectively handled by payroll software systems that ensure timely, accurate and error-free processing.
Timekeeping is the most significant factor in payroll processing. For this reason, time and attendance of employees is recorded to evaluate their working hours, shift timings, overtime, incoming and outgoing minutes etc. Any concerns in the time and attendance have to be consulted with reporting manager and applied in effect before pay-outs.
It becomes too difficult for organizations to follow a practice of manual time keeping and it may result in discrepancies in actual records, thus making them faulty. Employee attendance software is specifically designed to get over this common challenge of manual time keeping by keeping precise minutes of each employee working hours. Software like PayWheel provides medium/ small business payroll services and requires onetime investment to offer a lifetime of benefits. This helps companies save cost and become efficient.
This area of payroll processing is managed both by payroll and accounting departments where together they need to track the total salaries paid, withholdings of taxes and employee premiums, details of fringe benefits, maintenance of accounting records etc.
A comprehensive payroll accounting software can help painlessly reduce the workload of payroll accountants and make them compliant with federal laws of Indian payroll system.
According to the law- employer or the company, must maintain and record every single payroll related detail in the files for at least three years. There are pre-defined criteria for record keeping that must be followed at all times. Proper documentation, receipts, reports and other essential details can be reviewed in events like audits etc.
A web based payroll software can store all payroll data systematically which can be restored whenever in need. Cloud payroll is also an ideal means of securely keeping payroll data of SMEs and large organizations.
Make your payroll department proficient in all areas of payroll processing. Employ PayWheel and get rid of all payroll woes you’ve ever faced. To know more about the capacities of PayWheel, visit https://www.paywheel.com/paywheel-features. Free demo available