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What do you mean by payroll processing?

The word "payroll processing" refers to the process of processing payroll.

The company's payroll is a list of employees that are paid. The company's entire amount paid to employees is referred to as payroll. It establishes an organization's pay policy, which includes flexible benefits and leaves encashment policies.

Acquiring other payroll inputs, including food vendor supplies and payslip components such as basic, variable pay, HRA, and LTA, are also part of payroll management.

Payroll and HR administration entails releasing employees' salaries, depositing dues such as TDS, PF, and other taxes with the proper authorities, and filing returns.

Payroll processing entails calculating the Net Profit after-tax adjustments and other deductions that have been made.

Payroll processing in India

1. Creating a payroll policy

Setting policies for dealing with the bank throughout payroll operations is the first stage. Before these policies can be translated into standards, management should approve them. A few examples include pay policies, attendance policies, leave and benefits policies, and other policies.

2. Getting inputs

Several departments' inputs are gathered to guarantee that the payroll is computed appropriately.

3. Validation of input

It is essential to double-check the correctness of the data once it has been collected because even a small error can set the entire payroll process off.It is crucial to make sure the list comprises all active employees and no records of inactive personnel. They are examining the data to see if it complies with business policy. Ascertain if the present is in the proper format.


HR management and payroll processing

Due to the different compliance regulations in India, payroll processing and HR administration is a highly complex operation for most small companies.

Most companies lack a well-developed HR system and practices, resulting in inconsistencies in acquiring top talent, retaining good employees, and establishing a productive workplace culture.

Every month, an individual can have a stress-free and error-free payroll cycle by outsourcing payroll and HR management to TaxDraw.

Our HR professionals may also assist with implementing world-class HR practices in the organization from the start to support the company's growth.

Calculation of Payroll

The approved input data is delivered into the payroll system for actual payroll processing at this stage. The outcome is the Net pay after deducting the appropriate taxes and other deductions.

It is usually good to reconcile the data and double-check the correctness after the payroll process is completed to minimize other errors.

Post Payroll

Statutory compliance

The payroll administrator must strictly follow statutory compliance. Numerous deductions like EPF, TDS, and ESI are deducted during the payroll processing.

Accounting for payroll

Every company is obligated to keep accurate books of accounts, and one of the most important entries in those records is the payment paid.

Pay-out

Salary payments can be made in cash, check, or bank transfer after following the above mentioned steps. It is preferable to create employee salary accounts in order to facilitate transfers.

Report

The final stage is to compile a report, including correct information such as department or location-based personnel costs.

Payroll management approaches

Payroll management in Excel

Excel-based payroll administration is the way to go when a company has just started and few employees.

The computation is done on excel sheets using the standard payroll calculation template in excel-based payroll management. The payroll officer's calculations are aided by the mathematical formulas that have already been established. However, there are other flaws with this strategy, such as:

• The data is input manually; there is a high risk of clerical and mathematical errors.

• It's difficult to add and remove employees from the payroll list.

• Duplicate data and omission of entries are possible.

• It is necessary to keep track of tax modifications and other legislation changes such as PF, PT (Professional Tax), and so on.

Payroll Outsourcing

Whenever the payroll function is outsourced, it is handled by an external agency. Every month, the payroll service provider gives other data, such as attendance, leaves, and reimbursement details, based on the pay cycle.

The external service provider then calculates the payroll and meets all legal requirements. Because payroll is such an important job, TaxDraw can assist you in meeting all of your requirements.

Plans

Rs. 2499 All inclusive price

Starter

  • Up to 15 Employees
  • Salary Sheet Preparation
  • PF Compliance
  • ESI Compliance
  • TDS Filing
  • Form 16 Issuance
Rs. 4499 All inclusive price

Plus

  • Up to 30 Employees
  • Salary Sheet Preparation
  • PF Compliance
  • ESI Compliance
  • TDS Filing
  • Form 16 Issuance
Rs. 6999 All inclusive price

Pro

  • Up to 50 Employees
  • Salary Sheet Preparation
  • PF Compliance
  • ESI Compliance
  • TDS Filing
  • Form 16 Issuance

FAQ's

The word "payroll processing" refers to the process of processing payroll.

The company's payroll is a list of employees that are paid. The company's entire amount paid to employees is referred to as payroll.

The HR office creates the payroll since they keep track of the employees' attendance and overtime.