GST NOTICE

Payroll/HR Management Processing

IndiaFilings.com provides comprehensive HR and Payroll Software service that reduces the payroll processing of your company while ensuring tax compliance. In this service, we are offering dedicated accountants for managing payroll and tax filings for your company, which would ensure the fulfillment of the legal requirement by the government and would enable you to avoid any legal problems.

We process Monthly Payroll, TDS filing, ESI filing, and PF filing with our compliance platform called LEDGERS. Using LEDGERS, you can now easily manage employee data and track attendance, generate pay slips, and automate payroll processes. Our software gives you real-time views of your financials, so you can make informed decisions.

At IndiaFilings.com, we strive to bring you the best HR and payroll software available in India. We would love to speak to you about how our experts can help your business strive toward efficiency and compliance today.

What is Payroll processing?

Payroll is a list of employees whom the company pays. Payroll is the sum of the amount employers pay to the employees. A payroll function involves the development of an organization pay policy that includes flexible benefits, leave encashment policy.

Payroll management also includes payslip components like basic, variable pay, HRA, and LTA. and also gathering other payroll inputs like the organization’s food vendor supply, etc.

Payroll and HR management also involve the release of salary of employees, deposit the dues like TDS, PF, etc with the proper authorities and filing returns.

Payroll processing collectively involves the computation of the Net Pay after tax adjustments as well as other deductions.

Payroll processing and HR management

Most small businesses require very elaborate, time-consuming procedures for payroll processing and HR management due to the different compliance requirements in India.
Most startups do not have an established HR system and processes and thereby create a mismatch between hiring the top talents, retaining good employees, and even while building a productive workplace culture.
Availing the services of payroll and HR management outsourcing by IndiaFilings will ensure that every individual experiences a hassle-free, error-free payroll cycle every month.
Moreover, our HR experts can implement high-class processes for HR within an organization from the very first day, supporting growth in the business.

Payroll processing in India

Pre-Payroll Activities

Defining payroll policy

The first step is wherein the policies to the bank during the payroll processes need to be established. These policies need to be approved by the management to turn these policies into standards. Policies like the Pay policy, Attendance policy, leave and benefits policy, and more.

Gathering inputs

At this stage, the inputs are gathered from various departments to ensure the accurate calculation of the payroll.

Source of Data	Data Example
Employees	Income tax declaration, facilities availed, and more
HR team	Salary structure, eligibility for benefits
Finance team	Deduction for recoveries
Leave and attendance systems	Data from attendance systems, current work shift, etc.
General service providers	Transport service provider, canteen vendor, etc.

This data collection can seem tedious at first but registering with IndiaFilings will make it more hassle-free.

Input validation

As soon as it acquires the data, it should check for its validity because minor miscalculations may completely destroy the payroll process.

It must ensure that no records exist for inactive employees and that all active employees are included in the list. It must check whether the acquired data is according to the company policy. It must ensure that it is in the proper format.

Payroll Calculation

This step is when the validated input data is fed into the payroll system for actual payroll processing. The output is Net pay after adjusting necessary taxes and other deductions.

After the payroll process is over, reconciling values and verifying are always better to avoid further errors.

Post- Payroll

Statutory compliance

A payroll administrator strictly needs to comply with the statutory compliance. There are so many statutory deductions such as EPF, TDS, and ESI, which are calculated during the payroll processing stage.

All these deductions are then paid to the respective authorities or government bodies.

Payroll accounting

Every organization is required to maintain an accurate book of accounts and the salary that is paid for one of the significant entries in the books of accounts.

Payout

After complying with the steps above the salaries can be finally paid in cash or cheque or via bank transfers. For hassle-free transfers, it is better to have salary accounts of the employees.

Report

Preparing a report is the last stage and it is necessary to prepare an accurate report containing information such as the department or location-wise employee cost.

Various methods of payroll management

Excel-based payroll management

At the initial stage of operations and when a company has a handful of employees they opt for excel based payroll management.

In excel based payroll management the calculation is done on excel sheets using the standard payroll calculation template. The already set mathematical formulas help the payroll officer to do the computation. But this method has many errors like

High chances of clerical and mathematical errors as the data are entered manually
Difficulty in adding and removing employees from the payroll list
Chances of duplicate data and omission of entries at times
Need to monitor the tax updates and other statutory changes like the PF, PT, etc.

Outsourcing Payroll

When the payroll is outsourced an external agency is taking care of the payroll function. The payroll service provider based on the pay cycle every month provides various other data such as the attendance, leaves, and reimbursement details.

The external service provider then computes the payroll and takes care of the statutory compliance. Since payroll is a crucial function IndiaFilings can help you comply with all the needs.

Challenges in Handling Payroll Management Process

Because of these two reasons, payroll management processing becomes difficult

The requirement of statutory compliance

Nonadherence to the statutory laws can lead to a penalty of fines and in the worst case, it will even threaten the existence of the business. However, when you register with IndiaFilings you automatically process payroll in compliance with the statutory laws.

Dependence on multiple payroll input sources

Before the payroll is processed it is necessary to get all the data together from varied sources like the attendance register conveyance facility availed record, data from the HR team like salary revision information, etc. making it a tedious process.

For years the HR and payroll managers managed the payroll on excel sheets but excel sheets have problems like dependency on excel formulas for calculation of salary, complexity in adding and removing the employees, and other limitations like manual data entry, and difficulty in extracting information.

Why Choose India Filings’ HR and Payroll Management?

At India Filings, we understand businesses’ challenges when managing their HR and payroll processes. That’s why we offer a comprehensive HR and payroll management service tailored to your needs. Our team of accounting experts and payroll specialists work closely together to provide you with the following benefits:

All-in-one Payroll Support:Our HR and payroll management service is designed to provide comprehensive support for all your payroll needs. With cutting-edge web and mobile applications, you can monitor the status of your payroll in real-time.
Virtual Legal Assistance: As a valued client, you will receive virtual CA/CS/Law services for any legal assistance your company or employees may require.
Compliance Management: Our dedicated team will keep you up-to-date with all government regulations regarding labor laws, ensuring you remain compliant at all times.
Simplified Payroll Processing:strong>We use the latest payroll software and employ dedicated accountants and tax specialists to simplify employee payroll management, including employee compensation and PF payments, according to your company’s payroll cycle.
Additional Services: Besides payroll management, we handle other labor compliances such as EPF registrations, TDS return filing, and IT returns, all taken care of by our legal experts.
Electronic System: Our electronic system enables you to create and execute pay orders and track new hires’ information.

Choose IndiaFilings for HR and Payroll Management, and experience seamless and hassle-free HR and payroll management while compliant with government regulations. Contact us today to learn more about how we can help your business.

HR & Payroll Software FAQ’s

What is included in Payroll activities?

Payroll activities include attendance data for a particular month to capture the pays and the accurate attendance of the employees, details of new employees and employees left, the salary structure of new joiners and their bank account details, if there is any advance or incentive to be paid and if there are any special changes that are to be made to the salary structure.

Is payroll part of HR and Accounting?

Payroll comes under both the HR and the finance departments.

Who prepares Payroll?

The Human resource office prepares the payroll since they hold the records of the attendance and the overtime that is rendered by the employees, the accounts department prepares the payment and is subjected to approval from the head of the Agency or the representative.

What is a payroll management system?

A payroll management system is a software tool or platform that helps automate and streamline the process of managing employee payroll and related tasks. This includes calculating employee salaries, taxes, and deductions; managing employee attendance and leave; generating pay slips; and complying with tax laws and regulations.

What are the benefits of using payroll management software?

Payroll management software can help automate the payroll process, reducing the risk of errors and saving time. It can also provide easy access to payroll information for employees and management, improve compliance with labor laws and regulations, and facilitate direct deposit of employee salaries.

Why would my business need a payroll management system?

A payroll management system can help automate time-consuming tasks, reduce the risk of errors in payroll processing, improve compliance with tax laws and regulations, improve employee satisfaction by providing easy access to payroll information, and grow your business to adapt to changing needs.

What features should I look for in a payroll management system?

When selecting a payroll management system, you should look for features like automated payroll processing, tax compliance, direct deposit, time and attendance management, employee self-service, mobile accessibility, and reporting and analytics. These features can help provide an efficient, accurate, and secure way to manage Payroll, taxes, and compliance while providing employees with easy access to their payroll information.

What are some common payroll management challenges?

Common payroll management challenges include:

Ensuring the accuracy of payroll calculations.
Staying up to date with changing labor laws and regulations.
Managing employee attendance and leave.

How much does a payroll management system cost?

The cost of a payroll management system can vary widely depending on factors such as the size of your business, the features you need, and the number of employees you have.

How often should Payroll be processed?

The frequency of payroll processing may vary by company and is typically based on factors like payroll size, industry norms, and labor laws. Common payroll processing frequencies include bi-weekly, semi-monthly, and monthly.