Streamlining Your Payroll Process
As an employer, you need to establish certain key policies before Payroll can be run.
Define Payroll Policy
Section titled “Define Payroll Policy”It is the first step where you need to set the policies in place to process the payroll.
The policies include:
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Attendance policy
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Pay policy
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Leave and benefits policy
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Monthly Pay Cycle
To ensure smooth operations, an organisation needs a clear payroll policy and procedure so all payments are made on time.
Data Collection
Section titled “Data Collection”In the next step, gather inputs from the relevant departments so the payroll calculation is accurate. This can be simple or overwhelming depending on how many employees you have. Many organisations use a payroll service to manage it.
| SOURCE | DATA |
|---|---|
| EMPLOYEES | PERSONAL DETAILS, BANKING DETAILS, INCOME TAX DECLARATION, BENEFITS AVAILED |
| HR | SALARY STRUCTURE, BENEFITS ELIGIBILITY |
| FINANCE | REIMBURSEMENT OF EXPENSES AND DEDUCTIONS IF ANY |
| LEAVE AND ATTENDANCE | LEAVE AND ATTENDANCE DATA OF EMPLOYEE |
| SERVICE PROVIDER | DEDUCTION IF ANY FROM SERVICE PROVIDER FOR SERVICES RENDERED TO EMPLOYEE AND APPROVED BY COMPANY |
Input validation
Section titled “Input validation”Once the information is gathered, verify it so no errors creep into the payroll. Basic checks:
- The list contains all active employees and no inactive ones
- The data adheres to company policy
- All required data has been collected
- The data is in the correct format