Irregularities in Payroll can affect the morale of the employees greatly and ultimately affect the productivity. Payroll mistakes can happen without our knowledge and faster than we can think. When there is a delay in salary or salary is not paid accurately, can be a reason for demotivation to even your highly performing and tenured employees.
Adhering to the laws and compliance regulations such as labour law, PF, ESI, PT and statutory compliance is as critical as making sure accurate and timely payment of salary.
At HR Mithra, we understand the importance of timely error-free payroll management. Outsourcing your payroll management to us simply means a simpler, affordable way of paying employees, filing taxes, and performing other activities associated with payroll administration.
To make sure that your employees are happy and you are law compliant, you need to have a proper understanding of what payroll is and how to run payroll effectively.
HR Mithra provides innovative and completely customized solutions to you irrespective of the size and the domain of the organization.
Payroll Activities involves the following activities:
- Designing and developing organization pay policy including flexible benefits, leave policy, etc.
- Determining payslip components like basic, variable pay, HRA, and other benefits
- Gathering payroll inputs
- The actual calculation of gross salary, statutory as well as non-statutory deductions, and arriving at the net pay
- Releasing employee salary
- Depositing dues like TDS, PF, etc. with appropriate authorities and filing returns
There are always ongoing tasks in payroll administration that need attention and a constant need to monitor changes and needs a close attention to details. We categorize the payroll process into three stages:
- Setting Salary Structures – Defining payroll structure and components of the salary. Determining the fixed components, variable components, benefits, statutory components.
- Payroll Cycle – We need to determine and fix a Payroll Cycle and fix timelines for all activities such as collecting and validating payroll inputs, salary calculation and verification and obtaining net pay, timelines for generating of payslips etc.
- Collect & Validate Payroll inputs – Collection of payroll inputs such as new employee addition, attrite employee deletion, attendance inputs, leave calculation, overtime calculation, arrears, allowances, deduction. Then comes the validation of the inputs received and collation of the same.
- Gross & Net Salary Calculation & Verification (System or Excel) – Salary calculation is made on the basis of the payroll inputs collated. Gross & Net salary is calculated either through the Payroll system or excel as applicable for each client. The same is then verified with the stakeholders, pay out days, net payout and the deductions.
- Adjust taxes & deduction and obtain net pay – Applicable taxes, statutory and other deductions are calculated and adjusted into the payroll to obtain the net pay. Upon obtaining the net pay, payable amount for each employee is sent to the accounts department who does the bank transfers to the employees.
- Generate payslips, TDS – After completion of the actual payroll activity and the salaries are disbursed, payslips are generated for the employees. Again, this is either done through a Payroll management system or an excel depending on the size of the organisation.
- Deposit of statutory dues like PF, ESI, PT, TDS – All statutory dues are deposited to the regulatory bodies as per the timelines stipulated by the regulatory body.
- Payroll reports and documentation – Upon completion of the entire Payroll activity, monthly payroll report are generated as per the client’s requirement and all documentation pertaining payroll for the month is completed and kept ready as per the audit requirements.
Statutory Compliance:
Compliance to all legal and statutory norms is imperative for any organization to operate successfully. It is quite challenging for any organization to be compliant without the adequate expertise, with the ever-changing employment laws.
Also, to ensure efficient statutory compliance, it takes a considerable amount of effort and investment in terms of manpower and money and hence it is best to outsource this to a service provider such as HR Mithra who will follow the below process to ensure compliance:
Outsource your Payroll and Statutory Compliance Management to HR Mithra for a seamless and hassle-free Payroll Process every month.
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HR MITHRA is a Human Resources Management Consultancy that provides you a comprehensive solution for your multidisciplinary HR function. We will partner with you to assess and identify the unique needs of your organization and chalk out the transformation journey of your people & processes guaranteeing progress, of both your manpower as well as the organization.
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