Payroll Management - its frequency and its functions

by Boundless Management Advisory Services

Payroll generally refers to an employee list but is used to refer to the total amount of money which a company pays to its employees. It is also sometimes referred to the company's employee records of salaries, wages etc. or the company unit that calculates and pays the payrolls.

Payrolls are complicated so much that taxes can be filed parallel.

Why is payroll management so important?

1. Payroll management is important from an accounts perspective as payrolls considerably affect the company's net income as they are subject to many laws, rules and regulations.

2. Payrolls are important from a human resource point of view as employees are sensitive to payroll errors. Timely and accurate generation of payrolls of employees is necessary to keep the employee's morale up.

What should be the frequency of payroll calculation?

Payroll is generated generally at regular intervals. They are paid daily, weekly, bi-weekly/fortnightly, semi-monthly and monthly. Payrolls are also at some companies, given 4-weekly, bi-monthly, quarterly, semi-annually and annually. However, the frequency varies from company to company.

Why outsource payroll calculation services?

1. Some companies outsource payroll management functions to a separate company such as Boundless. By doing this, a company can reduce in-house costs of keeping employees who calculate payrolls and costs of systems and software that aid in payroll calculation.

2. Payroll legislation's complexity keeps on increasing day by day and for this companies have to stay abreast with the latest codes. This requires considerable time and effort. The advantage is that by outsourcing these services to Boundless, the business owner is saved from any trouble with the law. If there is any failure in adherence, then this could result in heavy fines for the company.

3. A company's time is also saved by outsourcing to Boundless so much that it can be utilised elsewhere.

Responsibilities of payroll management department or company such as Boundless includes:

1. Time checking- The payroll management company checks with managers and supervisors to the amount time an employee has worked. The number of hours also includes the number of hours overworked i.e. overtime. All this is thoroughly checked before the creation of payrolls.

2. Record Maintenance- The employee payroll records must be kept for a considerable amount of time.

3. Employee relations- The payroll management department address any inquiries generating from employees, managers or supervisors.  The department or the company also addresses any concerns/ inquiries pertaining to employees salary in case of employee's new job opportunity.

4. Payroll accounting- Through payroll accounting, the company tracks salaries paid, deductions if any and other employer-paid payroll expenses. Some more functions include paycheck monitoring,  employee insurance, reconciling payroll data, issuing stop payments, filing and reporting payroll taxes.

5. Employee benefits-  Since both payroll and HR functions work closely, they provide certain benefits to employees such as vacation, sick and personal leaves. Both functions work closely to ensure that employees do not take more of the above leaves.  Other benefits that we provide are life insurance, dependent care reimbursements, parking, medical, dental, vision and disability related benefits.

For more on payroll management, call us at +91-11-66797769 or e-mail at info@boundlessindia.com or visit us at http://www.boundlessindia.com.

 

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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