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.
Finsmart Solutions payroll management process, is a great mix of technology with payroll expertise and helps customers to ensure timely payouts, compliances with accuracy and deep insights for making business decisions.
As mandated by the law, the Employer must adhere to various rules and regulations such as Labor Law, PF, PT, and other statutory Compliance. And with the introduction of the New Wage Code all Entities need to adopt to the new labor laws else it could have the serious implication of legal risk.
Our scalable payroll solutions are designed and customized keeping in mind the payroll processing needs of businesses and cater to companies of any size and business nature. Finsmart is a renowned accounting outsourcing company in India, providing remote payroll processing services as well as onsite payroll processing services in Pune and Mumbai, India.
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.
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.
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.
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.
A payroll manager needs to carefully plan how he will carry out the process stages accurately and efficiently. There are always tasks requiring extra attention to review payroll data that is in line with changing tax laws. The payroll management process is split into three brief stages: pre-payroll, actual payroll, and post payroll.
The net salary or the amount to be paid is affected by many factors. Various company policies such as pay policy, leaves, benefits policy, and more are considered necessary during this stage. As this is just the initial stage, such policies need to be briefly defined. We need to get approved by the management to ensure standard payroll processing.
This pre payroll process stage involves interacting and gathering information with multiple departments and personnel in the company. The data collected includes information like the mid-year salary revisions, employee attendance data, and more.
However, it is easier to collect this data from smaller companies. In larger organizations, this activity might feel overwhelming since the data might come from various departments. This problem of getting data from the more prominent organizations can be solved using multiple innovative and effective payroll management softwares. Those include integrated features, including attendance management, so that the input data collection task does not remain a problem.
Once the payroll inputs are received, we check how valid the data is and its adherence to the company policies and make sure it is in the correct formats. We also make sure that any employee working in the organization has been missed out and inactive ones are included for salary payment.
Once the payroll input data is validated, the information is catered to the payroll system or software for the further processing of the data. The data we get as a result is the Net Salary after adjusting the necessary deductions and other things. Once this process is over, we usually go through the values to avoid any mistakes and keep the data accurate to the highest possible level.
Deductions like EPF, TDS, ESI are to be deducted at the payroll processing stage to maintain the Statutory Compliances. The company has to hand over the data to the relevant government organizations. The frequency of sending the data can vary as per the type of dues. Mostly the dues are paid in the form of challans. After paying all the challans, the returns report is filed for PF return and generating ECR.
Recording of all the financial transactions is done by most of the organization. However, you can also outsource this department to us by outsourcing your bookkeeping services to maintain the books of accounts. Since you outsource the payroll management process to Finsmart solutions, we check that all the salary and reimbursement data is fed accurately in the accounting system.
The salary payout can be by any means as per the company’s convenience, be it bank transfer, cheque, or cash. Most of the prominent organizations give their employees salary bank accounts. Upon completion of the payroll, the organization needs to send a salary bank advice statement to us. The salary bank statement has information like employee ID, Bank account number, wages, etc. This process can be shortened by using automatic salary slip generation and distribution softwares.
To facilitate the Salary Payout we also help organisations where they can transfer the Salary Payout to Finsmart Salary Account by way of single transfer and in turn we do the necessary payouts to the Employees. This saves time and effort of reconciliation at the organisation’s end.
Upon completing the payroll run, we provide the finance and higher-level management reports of department-wise employee cost, etc. Also, customized reports like location-wise employee cost can be provided if required. Because you have outsourced your payroll management to us, it becomes our responsibility to analyze the data deeply, extract the required information, and share the necessary reports.
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.
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.
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.
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.
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.
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.
A payroll management service helps a company process payroll calculations, payroll tax statements, year-end taxes, and more. An effective and efficient payroll management process makes sure that employees are paid accurately and consistently.
Payroll management services maintain the law the employer has to adhere to such as labor law, PF, PT, and other statutory Compliance.
Payroll these days is considered the responsibility of both the HR and finance departments. Payroll management is an employee-facing function, which is why some organizations have it under HR. Pay changes, entering termination dates and start dates, changing benefits information falls under the human resource umbrella.
Companies with just one employee may also need to get payroll services. The Business that operates under different jurisdictions needs to get payroll services to maintain the statutory compliances. Payroll service helps you prepare paychecks and report payroll taxes. However, penalties for missed payment or reports might cost a lot; therefore, every company needs payroll services.
Depending upon your needs and where your business is based from you can get in touch with us to get a free quote or drop us an email with your requirement and we will get back to you.
Finsmart Solutions is advance technology payroll outsourcing services provider in India as we works with a variety of cloud add-ons to provide you with world-class accounting services from India. Our expertise helps our clients to outsource payroll management and processing services from any part of the world.