Payroll, or employee compensation management, is a multi-layered process. It is not just about disbursing salaries on time, but also includes a whole lot of tax management and statutory compliances. Come the last week of a month and you would see HRs deep down in files to process the payroll on time, and error free. Here are our three suggested steps that will help you to ease the workload and simplify payroll management.
- Get the Policies Right: Indian payroll system is complex as it comprises of multiple benefits and reimbursement sections. However, it is important that you define your policies clearly. Segregating employees into different groups and then aligning compensations for each group can help ease the load. The basic frame work needs to be clear and scalable. You can also use an excel sheet based payroll calculator to compound your data. Here is a template that you can refer.
- Automate Attendance: If your employees are still signing the registers, then there is no way that you can track attendance accurately. Attendance is the basis of payroll calculation, so if you need your payroll done right, attendance needs to be captured without any errors. Automating attendance using an attendance management software can handle this for you. There are systems that even allow people travelling for business meetings to key in their attendance in time. Moreover, you get quick reports on leave and attendance of all your employees.
- Efficiency is the key: If your policies are clear and your attendance is automated, the next best thing to do is integrate these two with your payroll. You can use a payroll software to integrate different input channels and then run the payroll per the processes defined. Using a system makes the whole process a lot of efficient and reduces error rate.
Payroll requirements may change as your business grows. The best is to have a plan that is scalable and accommodates changing laws and employee size easily. In one of our next posts we will talk about how to choose the right payroll software for your business. Till then, happy pay-rolling!