What is Payroll Management?

The payroll management process, in short, can be referred to as the administration of a business’s employee’s financial records. The financial records include detailed information about the workers’ salaries, incentives, deductions, commissions, and net payment.

Table of Contents:

1. ☛ Payroll Management Services in India
2. ☛ Payroll Management Process
3. ☛ Benefits of Outsourcing Payroll Management Services
4. ☛ Why Outsource Payroll Services from Finsmart?
5. ☛ Questions about Payroll Management

Payroll Management Process

Payroll Management is one of the important functions since it is pertaining to all the employees in the organization. It’s a very sensitive function even a minor lapse can create a not so good impression about the organization in the minds of the Employees. Further it’s sensitive data so the organization needs to handle it well, maintain confidentiality and that’s the reason most of the organization outsources this function.

Here are the Stages in Payroll Management Process:

1. Compensation Structure:

The designing of compensation structure is key to the Payroll Management, it should consider all the legal regulations, provision of allowances to take advantage of tax benefits and should be efficient enough in terms of administrative management from the organizations perspective. Compensation Structure also has a power to promote organization’s philosophy and core values. For example : if one of the core values of an organization is say Knowledge & Learning, the comp structure should have an allowance built in for Knowledge Site/ Magazine subscription or Reimbursement of Course fee, etc.. built in.

2. Payroll Input :

a) Attendance System: Managing accurate Attendance has become a task for the organisations, thanks to technological innovations have now made jobs easier. There are a lot of Mobile Apps to capture attendance along with the geo tags besides the normal access or punch cards. These systems helps to a larger extent making attendance an auto pilot process

b) Leave Management: Defining the right kind of leave quota and setting process of allocation, recording and approvals becomes a tasks for most large organisations. Keeping track of leaves for all the employees is a task for most larger organisations unless it is automated.

c) New Employees: Setting up a New Employee into the Employee Records and Payroll System is a task unless the organisation has designed a right process for the same. It requires to collect all the Employee information, Personal Details, Bank Account Numbers, PAN and Investment details in time to ensure smooth payroll for New Employee

d) Exits: When the Employee exits the organisation there is a lot of paperwork and process involved. Company needs to ensure all the Leaves eligibility, incentives due, PF, gratuity and other benefits that accrue to Employees are calculated correctly to arrive at Full and Final Settlement of the Employee Compensation. Any mis calculations or errors can leave a bitter experience about the organisation in the minds of employees.

3. Salary Payout and Compliances:

Organisation needs to define the date of Salary payout and accordingly create a process and TAT for each step in the Payroll Process. Ensuring the Salary Payout on the defined date every month creates a huge goodwill in the minds of the Employees and they too can plan their cash flow accordingly. Timely Compliances like PF, ESIC, Provision for Gratuity, etc.. needs to adhere to the date else there can be disallowances of these expenses in Income Tax and additional interest & penalties can be levied.

5 Benefits of Outsourcing Payroll Management Services

1. Save on time and cost:

In business, time is money is what they say. Having in-house payroll processing requires much attention to detail. As the demand increases, there comes a need for an increase in staff. By outsourcing the payroll processing to us, you get everything related to payroll, like calculating payroll taxes and statutory filings to handle payroll inquiries. So having outsourced your payroll process, you save a lot of time and cost.

2. Business focus:

Payroll is not one of your Business’s core functions, meaning no revenue is generated for your Business through this process. By outsourcing a non-core function, you can focus more on your core business functions, in your area of expertise and can grow your business to the next level.

3. Avoid penalties and stay in compliance:

Having outsourced payroll to organizations like Finsmart, you can depend upon us since we are constantly updated about the local as well national regulations. This helps in avoiding unnecessary audits and penalties which are charged for non-compliance. We ensure that the payroll process stays in compliance with the relevant guidelines. We make sure we keep ourselves updated with the country’s payroll laws where your company is currently operating.

4. Expert access:

Having an outsourced payroll provider has the advantage of having access to experts that have years of knowledge in this process. Having this access is a boon if your business operates under multiple jurisdictions. Also, you get someone well aware of all the local as well as international rules and regulations. Finsmart has individuals who can handle even the complex payroll tax issues.

5. Security:

A company’s payroll process has sensitive data about the company and its employees. When working with payroll management companies like us, your data is protected and handled only by trustworthy experts. So you need not worry about the confidentiality and the security of data. Your information is always secured when with us.

Why Outsource Payroll Services from Finsmart?

Finsmart Solutions outsourced payroll management process is an excellent mix of technology with payroll expertise. It helps customers ensure timely payouts, payroll compliances with accuracy, and deep insights for making business decisions.

Our customer-centric approach has helped us improve our level of expertise and evolve in payroll management technology. However, it has also made us confident enough to handle any complex payroll function with ease. It is making us one of India’s preferred payroll outsourcing companies.

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