PeeRaNoo

Payroll generally, in an accounting term, is referred as the amount received by an employee of a company organization. This amount is calculated based on all the benefits such as salaries wages, bonus, amount given as gifts in an organization or company and deductions made on this amount for the specific period, a professional has served his her tenure.

Payroll plays pivotal part in any company or organization because it’s the payroll which attracts a professional consultant’s small, medium and high level employees so on so forth. On the basis of accounting policies, payroll & taxes attached with this payroll is affects the income taken to home or comes at hand.  Payroll section in a business company organization is more complex division compared to any other section because this involves working on salary, investments, perks, bonus, with holdings and deductions lastly. The division of payroll needs to ensure that every employee should get their salary, professional fee without any error and on time.  The payrolls are subject to rules and regulations of the department. For example if the income tax rules are changed in the next financial year then the tax deduction shall be based on that else the tax deductions made shall be considered void, if not worked out in accordance of government rules.

The company organization society or any business firm needs to comply with the market value to pay the staffs otherwise its considered as exploitation and not the proper employment. Rationalization of the pay structure & identification and fixation of functions, responsibilities in the office has to be taken in mind throughout.

The structure of the payroll can be based on the following: -

• Within the paying capacity of the Organization company society NGOs
• To conform with the market rates & trends
• To conform just and equity to staff, whose strength is kept at minimum level with maximum utilization.

There are various ways to pay the employees serving the company. It can be paid regularly to permanent staff and professional fee to the associates, consultants & other temporary employees. Basically, the HR or accounts department calculates the payroll of all the permanent and associated staffs through software packaging of payroll. This software provides accurate computation of the salary & deductions after which correct paychecks are issued. In most of the Companies attendance record system is refereed to pay the salary to the working staffs which are generally prepared by the immediate supervisory officers at the end of the pay period.

A payroll can have the following component:

Therefore payroll is one of the most important factors which attract a professional and satisfy their need and this way company also gets a skilled staff and get benefited.

There is difference between payroll of Non-Governmental Organization & the company due to the nature of difference in function. A company might provide its employees a number of components attached to wages & salaries.  A NGO may not provide the same facility to its staff but that does not mean that it pays lower than market trends. Comparison is never been done between a Corporate & an NGO. The employees of NGOs might get chance to receive many other facilities which perhaps do not make part of direct money but reduce the burden of the employees’ financial obligations.  A NGOs payroll can have the following elements reflecting in their pay grade such as:-

•    Parameter wages
•    Medical allowances
•    Transportation
•    Annual raise & benefits
•    Overtime for concerned employee
•    Mobile & other facility to the staff whose work are based on IT
•    Allowances for the employees whose work are in interiors
•    Performance benefits for the good performer

In any national or International NGO, motivations are given in breaks, on the basis of calculation of salary arrangements.  An apparent rule with methodology is introduced for all employees to provide incentives in uniform manner. These perks are most important attraction in the NGO sector which lures the professional to go for this sector. A trip to places also is part of the job where a person professional gets chance to visit various parts of the world and learn many important things.

There are huge numbers of NGOs working worldwide. These are dissimilar with each other. There might be same work but the modalities of the payroll can be different in different NGOs. Some are well known to pay reasonably good salary package & associated perks but some can pay really low. The payroll factor of the NGOs depends on the funds allocated to them for their activities. Some NGOs have numerous activities for the community, for students, for art works etc. Hence their scope of getting funds is more than those who have a few activities to carry out for the required society therefore their chance of getting the fund are less.

It has been observed through studies that the NGOs who satisfies the salary package & allowances of the professional get for themselves well educated and knowledgeable workforce but those who don’t pay well to their staff are left with not-so-worth employees who simply fulfill the day-to-day requirement of the organisation and can not try for more research works, enhancing quality activities for the area, they are engaged with.

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