The payroll maintenance system is that pROCess which keeps a record of the financial status of the employees such as their salaries, wages, net pay, tax deductions, incentives, PFs. ESIs, etc. This system allows paying the wages and all the financial payments of the employees with great ease, thus ensuring a timely and proper wage of the workers. This not only helps the organisation to maintain a positive review of itself but also helps the employee to meet his requirements.
Benefits Of Payroll Management System
There are many benefits of the payroll management system. Some of them have been mentioned below.
Tax filing and reports are easy to manage. As every salaried individual has to pay taxes according to the Income Tax Act, payroll is a good way to avoid the mismanagement of taxes. This ultimately saves the individual from paying penalties without faults.
Being able to integrate it into the existing banking systems, the payroll software is proved to be economical. Moreover, this also helps organisations to save time and assets as they do not have to calculate chunks of data.
Maintains a reputation. A Company perhaps would always want to have a good reputation and in order to do that, it must adhere to all the taxes which are laid down by the country. This payroll also helps in that.
The salary, incentives, bonuses and other all details are included in the payroll system. Thus at times of appraisals and other matters, this system provides compensation to the employee.
The requirements for Effective E-Payroll system
The following are the requirements which are to be furnished in order for an effective e-payroll system:
The Company documents such as the Registration Certificate, Electronic Challan cum Return (ECR) document, Company GST and TIN are amonGST some of the necessary documents.
You have to choose a payment schedule, such as a weekly, bi-weekly, monthly, etc or whatever is flexible and convenient.
Employees must be classified on the basis of contractors, freelancers, permanent employees, interns, etc.
The Company terms of compensation have to be kept updated in order to keep a record overall of the employees’ hours, office timings, overtime, etc.