IndiaFilings.com offers a comprehensive HR and Payroll Software service that simplifies your business’s payroll processing and tax compliance. Our team of experts provides a dedicated accountant to manage your payroll and tax filings, ensuring compliance with government regulations and avoiding legal issues.

Monthly Payroll processing and all statutory compliance required like TDS Filing, ESI Filing, and PF Filing are dealt with by our services. You can simply manage employee data, track attendance, generate pay slips, and automate payroll processes using the LEDGERS compliance platform. Also, the financials are provided to you in real time, allowing you to make informed decisions.

At IndiaFilings.com, we have the best in class HR and Payroll software services available in India. Get in touch with us today to know how we can add efficiency and compliance to your business.

What is payroll processing?

Payroll refers to the list of employees that a company pays. Payroll is the summation of the total amount the employers pay to the employees. Payroll function may involve developing an organization’s pay policy, which may include flexible benefits and leave encashment policy.

Payroll management also includes payslip elements such as basic, variable pay, HRA, and LTA. Also, collecting other payroll inputs like the organization’s food vender supply, etc.
Payroll and HR management include the disbursal of employees salary, depositing the dues such as TDS, PF, etc with appropriate authorities, and filing returns.

Put together Payroll processing involves computing the Net Pay after the adjustments for tax and other kinds of deductions.

Payroll processing and HR management
Payroll processing and HR management usually are quite challenging for most small businesses as there are a lot of compliance requirements in India.
Most startups aren’t even well-established in terms of their HR system and process, which causes a mismatch in hiring top talents, retaining good employees, and even building a productive workplace culture.
Outsourcing your payroll and other HR management duties to IndiaFilings will help assure error-free payroll cycles every month with reduced stress levels.
Besides this, our HR experts can help implement world-class HR processes within the organization from day one since it facilitates business growth.
Payroll processing in India Pre-Payroll Activities Payroll policy definition The very first step is where the policies to the bank during the payroll processes need to be established. These policies should be approved by the management in order 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.

Input Validation
Once it is collected, the legitimacy of the data has to be verified as a wrong minute can ruin the whole payroll processing.

It should have all the active employees on the list. There should not be any records of inactive employees. The data should be according to the company policy so make sure to confirm that it is in the proper format.

Payroll Calculation
This is the inputted data for payroll processing, as validated, when fed into the payroll system for actual processing. The end result would be the Net pay with necessary taxes and other deductions subtracted.

Values reconciled once payroll process is over-it’s always better to do it and verify its accuracy in order to avoid further errors.

Post- Payroll
Statutory compliance
Payroll administrator strictly needs to follow statutory compliance. There are various types of statutory deductions, which have been put during the payroll process, such as EPF, TDS, ESI.

These deductions are then paid to the respective authorities or government institutions.

Payroll Accounting
In every organization, there is a proper book of accounts, and the salary paid is one of the main entries in the books of accounts.

Payout

Following all of the above steps, salary cheques can finally be issued in cash or cheque or through transfers to the bank account. To avoid much hassle, it is recommended that the employees have salary accounts.

Report
The final stage is preparing a report. An accurate report must be prepared that provides all the necessary information, such as department-wise or location-wise employee cost.

Different forms of payroll management
excel-based payroll management
At the initial stage of operations, as well as when a company has only a few employees, they prefer using an excel-based payroll management.

In the case of an excel-based payroll management, the calculation is computed on an excel sheet using the standard payroll calculation template. This already set mathematical formula helps the payroll officer to do the computation. However, this method has many errors in it like
High probability of clerical and mathematical errors; data entry is manual.
Difficult process of adding or removing employees from the list of payroll
Opportunity for duplicate data and omission of entries at times

Tax updates and other Statutory change like PF, PT, etc. Need to be followed.
Outsourcing Payroll.

When the payroll is outsourced then an outside agency would be handling the payroll function. A payroll service provider based on the pay cycle each month provides various other data such as the attendance, leaves and reimbursement details.

The external service provider then calculates the payroll and ensures compliance with the statute. Since payroll is one of the major functions, IndiaFilings can assist in carrying out all needs.
Challenges in Handling Payroll Management Process
Because of the above two reasons, processing payroll management becomes difficult.

The necessity of statutory compliance
Failure to comply with the statutory laws may invite penalties and, in the worst-case scenario, jeopardize the survival of the business. However, you process your payroll in accordance with the statutory laws through registration with IndiaFilings.

Multiple sources of payroll inputs processing Pre-processing All the data collected from various sources need to be gathered before processing the payroll including the attendance register conveyance facility availed record, data from the HR team like salary revision information, etc. it is a time-consuming process.

HR and payroll managers have been managing payroll for years on excel sheets. Now this too has problems associated with it. There is dependency on excel formulas to calculate the salaries; difficulty in adding or removing employees; and many other limitations such as manual data entry; trouble in extracting information. Why IndiaFilings for HR and Payroll Management? We at IndiaFilings strive to better understand the pains businesses face in managing their human resource and payroll by offering holistic HR and Payroll management service. Accounting experts and payroll specialists are well coordinated to bring the following benefits to our clients: All-in-one Payroll Support: Our HR and payroll management service is devoted to providing comprehensive support for all the payroll needs of an organization. With cutting-edge web and mobile applications, you keep track in real time the status of your payroll. Virtual Legal Assistance: You will get virtual CA/CS/Law services on all the things your company or employees want. Compliance Management: Our team will always keep you up-to-date regarding compliance of your company to labor laws and the rest of government regulations. Payroll Processing made Simpler:strong>We use the latest payroll software and dedicated accountants and tax consultants for streamlining all employee payroll management, including compensation and PF payments, as per a company’s pay cycle. Payroll management aside, we take care of all labor compliances including EPF registrations, TDS return filing and IT returns-all under one umbrella even naturally propelled by the expertise of legal minds. Electronic System: This electronic system allows you to generate and make pay orders and follow up on new hire information. With IndiaFilings, you can experience seamless and smooth HR and payroll management while remaining always in compliance with the government. Call us now to learn more about how we can service your business needs.