The literal meaning of payroll is a company’s list of its employees, but it is commonly used to refer to the amount of money paid by the employer to the employee based on the services provided.
A payroll processing system is maintaining financial records of employees’ salaries, bonuses, net pay, allowances, deductions, and generation of pay-slips for a certain period, etc with the help of a software program or system application. It is a software program and is less time consuming and accuracy levels are also high when compared to doing manual computations for each and every individual employee.
The payroll process can be a tedious and complicated procedure that differs from company to company. Depending on the company’s unique requirement based on the strength of the employees, the payroll structure may vary as no two businesses are alike. It can be processed on a weekly, monthly, or daily basis (in the case of daily wage workers). Additionally, payroll affects laws such as labor welfare act, payment of salary and wages act, and the minimum wages act. Under minimum wages act, compulsory salary elements such as basic, DA, and HRA need to be paid to employees.
This involves precise payroll calculations, disbursal, generation of paycheck, and managing payroll taxes. All these are performed with the help of payroll software to ensure employees do not get inaccurate paychecks and that all mandatory compliances are met.
Along with the basic salary, an employee is also eligible for many payroll benefits or privileges based on the position he holds in the company. Some of the benefits or privileges include car conveyance, free food and beverages, medical reimbursement, travel allowances, HRA or house rent allowance exemption., leave travel concession, etc. Good payroll software’s will automatically perform accurate payroll calculations and take care of all the necessary payroll benefits to be provided as well.
An employer must maintain all records related to payroll taxes like income tax withholding, Social Security and federal unemployment tax etc. for at least four years after the tax becomes due or paid, irrespective of the number of employees that are employed. To satisfy federal requirements, there are at least twenty different types of employment records that must be kept.
There are many types of payroll processing systems on the market, but they can be divided into three categories: in-house, software, or outsourcing.
In-house payroll management is the most basic kind of payroll process, which involves time cards and manually entered Excel spreadsheets. Customized programs can also be made according to the requirement of a firm who can afford the resources for developers.
Payroll software implies when information is collected by Internet or cloud-based solutions that can record time, attendance, and schedule data and calculate wages accordingly. The key features of payroll software are management of attendance and leaves, managing claims, loans and management of reports.
As the name suggests, outsourcing involves firms handing off employee information to companies that specialize in providing payroll management services.
Payroll for a small firm is a simple task whereas managing payroll for startups can be quite a challenge. There are many laws related to payroll that one has to take into account. That is why many business owners take the help of payroll management services.
Payroll management services in India are extremely competent as they are led by highly specialized teams of chartered accountants. They have an expansive fund of knowledge in the field of finance and accounting, which is extremely beneficial to businesses both locally and globally. Payroll management company in India have proficiency in English, which makes them very competent when dealing with global clients. Payroll management services in India have made India one of the major destinations for payroll outsourcing.
The corporate sector benefits from payroll outsourcing services. Some of the benefits are:
- Payroll processing is a cumbersome process. Outsourcing payroll leads to better utilization of staff to pursue other profitable activities.
- Costs can be trimmed by working with an efficient payroll management company in India.
- Penalties and fines can be avoided as late or incorrect fillings are avoided by availing payroll services.
- There is more time saved, which can be better used to pay attention to core issues.
- Managing payroll on your own is risky as one needs to deal with core issues and also take care of other aspects of payroll like updating tax tables, submitting reports and making payments. All this is efficiently taken care of by outsourcing payroll.
- Walkouts do not matter anymore as the payroll of the new employee is taken care of by the payroll system.
Based on the benefits from payroll management services, it is safe to say that business owners gain more productivity and earn more profit and become more stress free. They are able to focus on the more important aspects of their business.
To cater to all sizes of businesses, be it small, medium or large, “Facility Plus Services” provides Payroll Management Services in Delhi ncr to make businesses independent from management duties so the focus is to stay ahead in the compliance curve. “Facility Plus Services” provides best in class services to manage payroll data and payroll tax obligations. Because of the flexible solutions provided, contact “Facility Plus Services” for Payroll Management Services in Delhi ncr.
For a company to be successful, the tiresome task of payroll processing needs to be taken care of by a separate entity. Competent payroll management services will provide you with the best chartered accountants, financial advisors and tax consultants. Personalized and exclusive services will be assured and all information is treated with utmost confidentiality. This in turn helps the employers to concentrate on the more important and core activities of the business.
An efficient payroll system ensures that the employees get their paychecks along with their benefits on time. This leads to a much secure employee, which in turn will have a positive effect on his performance leading to good productivity, which in turn contributes to the success of the company.