Employees & Payroll
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:
Minimum wages X amount
DA
HRA
EPF
ESI
Bonus
Leave Holidays
Uniform
Medical
Relieving charges (1/6)
conveyance
Service charges (13%)
LTC
Superannuation
Other perks such as telephone, canteen, newspaper/magazine etc…
Rewards
Gifts
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.