Compensation of human resources forms a major part of business expenses across all types of business verticals. It is therefore imperative to have an efficient system for the accounting procedures of the payroll process. The payroll process starts as soon as your first employee gets hired. Employees are paid based on the number of days they work per their pay rate. Before handing over the pay cheque certain statutory deductions must be made, like PF, ESI and certain applicable taxes. What is given to the employee in the form of a pay cheque, direct bank deposit, or other method is the nett pay.
How long it takes to process payroll depends on the calculation methods used. There are some small enterprises that carry out the whole process manually. This way, it might take you an entire day or more to come up with the calculations for even just a handful of employees. Not only is it a time consuming-task, but there are also almost always errors that creep in. This is where the need for automation arrives.
If you want to speed-up the payroll process in your organisation, using a payroll software or service is highly recommended for you. It will ensure that your payroll is processed with accuracy, often under a meagre 30 minutes. The software can be set to factor in the local laws governing deductions as relevant. Plenty of time will be saved, and the resultant pay cheques will be completely error-free.
Payroll accounting using payroll software in three simple steps
It’s a really simple process that involves three basic steps.
1. First, you’ve got to collect all the payroll information correctly. This means you have to take the days each employee worked during the pay period with the help of a scheduling, or timekeeping system. Some businesses use a combination of two or three of these.
2. In the second step, the earnings and deductions must be calculated. Input the data collected into the payroll system
. This can be uploaded electronically. The exact steps in the computation procedure vary from software to software.
3. Finally, pay your employees their salary by means of your chosen method of payment. Salaries are paid by the payroll cheque, direct deposit, and even in cash, as per company policy.
Employee Management Support
A comprehensive and advanced payroll software like greytHR not only automates payroll but also automates your leave and attendance management and expense reimbursement with statutory compliance. Your employee’s major source of income is the money that you dispense as salary therefore it is common for your employees to have queries that require you to validate tax deductions from their monthly salary, their last three months’ salary slips, their overtime payment etc. Some payroll softwares provide a self-service and mobile app feature for their employees that allows them to log in and check their attendance, their pay and help them with tax computation etc. It also helps payroll officers focus on their core function.Payslip generation and distribution
The monthly task of generating payslips is handled smoothly by greytHR. You no longer need to use MS Office: for payslip generation, verification, followed by conversion to the .pdf format, and, finally, their distribution to individual employees. greytHR allows you to mass mail payslips or publish them to its Employee Self-Service (ESS) portal. Employees can then view, download and print their own payslips from the greytHR mobile app or ESS portal as per their need.
A robust payroll software will support the interface of salary entries with the finance software of the company. The HR and payroll software
by greytHR is one of them. It is flexible and can handle any type of salary structure. All of your specific requirements will be addressed and also, the software will be seamlessly integrated with your existing leave and attendance management systems. You will get 100% accuracy and enormous chunks of time will be saved.
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