Introduction:
HR and Payroll together play a major in any organization. On the one hand, an HR looks after the welfare of its employees. While on the other hand, Payroll management looks after their salary compensations and benefits. You should remember that ensuring accurate and timely payment of salary is very important. And following the various laws and regulations such as labor law, PF, and other statutory compliance is also critical. Non-adherence to these laws can result in serious legal and financial consequences. To better understand the specific role of Payroll in HR, go through the following paragraphs. However, you can even go through an HR Payroll Online Training to install its basic understanding and its functions.
What is Payroll?
Payroll is the process of paying salaries to the company’s employees. It initially starts with preparing a list of employees to pay and ends with recording those expenses. It is a little complex process that requires different teams to work together like payroll, HR, and finance to work together. Basically, in simple terms, the process involves managing the employee’s payroll cycle after adjusting the essential deductions such as TDS, employees’ PF contributions, meal coupons, and more. Businesses can choose to pay salaries on a weekly, bi-weekly, or even monthly basis. However, it is usually processed every month in India.
What is HR Payroll?
Human resources are the department of a company that handles all the aspects of the employment and benefits of each employee of the company. An HR Payroll specialist is a member of the HR department who manages the payroll aspect of the overall company's budget. The payroll specialist mainly manages the implementation of the payments to and benefits for each employee and the overall company. This usually involves both enrolling new and current employees into their respective benefit programs. The payroll specialists further handle the time cards, calculation of pay, and issues checks or deposits to each employee.
Different Payroll Terms You Should Know About:
1. Gross Pay: Gross salary is the total of all the components of the salary package for an employee. It is the salary before any mandatory and voluntary deductions in terms of provident fund, income tax, medical insurance, and more.
2. Net Pay: After calculating the net pay, you have to ensure mandatory deductions like income tax, provident fund, and more from gross pay. The amount that an employee takes home after all deductions are net pay or net salary.
3. Overtime: Overtime refers to the extra hours of an employee in a company than his usual working hours defined as by govt. Law. The extra salary or remuneration generally depends on the company policies.
4. Pay Period: It is a time frame to calculate earned wages and manage when employees receive their respective pay slips. Pay periods are usually fixed and recurring on a bi-weekly or even monthly basis.
5. Compensation: It involves managing, analyzing, and further determining the salary, benefits, and incentives paid to the employees for their overall work.
6. Contractual Employees: There are some employees who on a temporary basis. Their terms of employment are mentioned in the contract. The payroll management oversees all their work.
What is the Requirement for Businesses to do Payroll?
Keeping a record of the salaries paid to employees is one of the most essential works in an organization. Payroll plays a significant role in the net income of an organization. It is generally a business function that revolves around several laws and regulations. Because of the legal and ethical factors involving payroll, it is very important for businesses to do payroll and keep a spotless record of their payroll.
Conclusion:
To ensure your employee’s satisfaction and also law compliance. You need to have a strong understanding of what payroll is and how to effectively run payroll. You can start with the basics of payroll, with HR Payroll Training Institute in Delhi. A well-versed understanding of this domain will enable to work effortlessly. Every employee work for their monthly or weekly payment. Thus, it becomes the utmost responsibility of the organization to effectively manage its payroll system. Because one default or error can leave a bad remark on the organization’s name. Thus, go for a well-structured training course to develop its understanding and work well.
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