Complete Guide Regarding Monthly Payroll Process in India

Overview

Monthly Payroll Process is done mainly for the precision of salaries and that the organization does not delay the actual payment to its employees. One would find different kinds of calculations taking place in the activities like salary, tax contributions, and more under Indian labor laws. So therefore, it is based on many factors. Some of those factors would include basic pay, allowance, incentives, bonuses, overtime, managing statutory obligations (PF, ESI, and Income Tax deductions). Payroll management ensures satisfaction from employees and keeps organizations in compliance with stipulated laws accuracy in terms of finance. Payroll can be paid daily, weekly, bi-weekly, semi-monthly, or monthly.

What is Payroll?

A payroll is a list of workers or employees due for remuneration or payment from a company or organization. Payroll, in addition to referring to the amount an employee is paid to receive as remuneration for services rendered, is also the money record of payments that an employer makes to his employees. Such records of payment include wages, bonuses, salaries, incentives, etc. All of the following are involved in payroll processing:

• Employee on-boarding
• Compilation of inputs for all employees
• Validation of inputs of all employees
• Payroll calculation
• Payroll Accounting
• Payment of pay by passing to the employees
• Compliance and reporting

How Do We Process Monthly Payroll Process Services?

Following are the payroll activities performed in India by most firms:

Step 1: Pre-Payroll Activities

• Onboard employees: Hire employees, and prepare a compensation list.
• Define Payroll Policy: Policies related to payroll, such as salary structure, attendance, leave, employee benefits and ensure labour compliance
• Employee Information Collection: PAN, bank account, most employee-related information and other relevant documents should be collected.
• Employee Input Cleansing: Validate all incoming data to prevent errors in payroll processing

Step 2: Payroll Processing Operations

• Payroll Calculation: Net salary should be calculated along with the deductions while loading the employee details.
• Components of Salary Structure: CTC, Allowances, Deductions, Reimbursement etc
• Life Insurance Management: Track Group Life cover along with tax parameters

Step 3: Post-Payroll Activity

• Payroll Accounting: The salary expenses and covers of the insurance of employees should be captured and accounted for.
• Disburse Salaries: A proper bank account should be set up with sufficient funds to ensure that salaries can be paid on time and processed smoothly through bank transfers.
• Reporting and Compliance: The statutory compliance must be accounted for and remitted in time to the correct authorities.

Benefits of Our Monthly Payroll Services in India

The benefits of monthly payroll process services are as follows:

• Time Efficiency: It allows you to automate payroll tasks so that the HR can focus on strategic initiatives.
• Accuracy and Compliance: Lowers the error rate while keeping you on the right track concerning labor law and regulation.
• Cost-Effective: No overhead, because you do not have an in-house payroll team.
• Scalability: The capability to react fast to the changes and varied sizes of the workforce and business needs
• Confidentiality and Security: Sensitive employees' confidential data with strict access controls.
• Employee Self-Service: One can check his salary details directly from an online portal.
• Expert Support: Employees receive expert support of payroll professionals and compliance updates
• Integration with Other Systems: Integrated with current software for streamlined business operations.
• On-Time Pay: Ensures that all salaries are processed and disbursed in a timely manner.
• Business Continuity: Allows continuous delivery of payroll services even during such times.

Services We Offer Under Our Monthly Payroll Process Services

These are some common services included in monthly payroll process services, some of them are given below:

• Payroll Calculation: It processes payroll and carries out the calculation of salaries, wages, and bonuses, as well as deduction (as per labour law). Accounting of tax on the money part of income tax and other mandated deductions.
• Government Law Compliance: like (PF, ESIC, etc). Payslips issuance to staff; it is done on a monthly basis, break-down payslips. Records and data related to payroll for the employees, management of employee records.
• Direct Deposit Services: Provides where the salary for the employees is transferred directly to their accounts in the bank.
• Leave and Attendance Management: It monitors the attendance of each employee and his or her leave entitlement that has been accrued and which is supposed to be utilized in payrolls.Preparation and filing of annual and monthly tax forms and reports, that is end-of-year reporting.
• Payroll Reconciliation: Payroll register and reports check against errors or mistakes. This will be free from corruption.
• Employee Self-Service Portal: Online access to print their payslips and tax information.
• Consultation and Support: This is a live consultancy for payroll-related queries and matters of compliance.
• Custom Reporting: Reports can be drawn on payroll expenses and trends, and they will be management-specific.

How to Obtain Our Monthly Payroll Process Services?

To avail our payroll services you shall follow these below given steps:

Step 1: Pre-implementation Meeting

First of all, schedule a meeting with us discussing the payroll requirements of your organization and obtaining all the details about the same.

Step 2: Service Agreement

Reviewing and signing the service agreement that has been placed in front of you and gives an outline of services, charges, and terms.

Step 3: Data Collection

Collect all the information from the employees that form their personal details, forms of salary and other existing payroll data before implementation.

Step 4: System Setup

Setup of payroll profile for your Organization, which involves policies and cycles of payroll in Bizfoc system.

Step 5: Input Validation

Combine to ensure all the data collected is correct and complete before processing

Step 6: Payroll Processing

Bizfoc does salary calculation, and all other deductions among other key items while creating payslips

Step 7: Approvals

Review the payroll report accompanying assessment of the need to approve before final pay

Step 8: Salary Payment

Bizfoc ensures that there is payment of salary pay made into employees' Bank accounts with all the other supporting documents required

Step 9: Monthly Reporting and Compliances

Ensure all statutory compliances are achieved in every reporting month and annually.

Step 10: Continuous Support

Continuous support for any payroll related query or changes required on the way in a month

List of Softwares Used by us For Monthly Payroll Services

Some of the most important softwares used by us while providing the monthly payroll services are as follows:

• ADP Workforce Now
• Gusto
• Paychex Flex
• QuickBooks Payroll
• Zenefits
• BambooHR
• Rippling
• Xero Payroll
• Tally ERP 9
• Kronos (UKG)
• Zoho

Why to Choose Bizfoc?

Bizfoc assures you of monthly payroll service processing sans any stress and in ways that best suit the needs of your business. With expert support, strict adherence to the law, and user-friendly technology, Bizfoc makes the management of payrolls easy, less prone to error and costs you less time and resources. Our personalization and timely reporting accuracy and confidentiality make us your one and ultimate partner for all of your payroll needs.

Conclusion

It is a multi-level process, hence it needs to be followed by the regulatory standards of India. It ensures the exact salary calculation, correct statutory deductions, and compliance with labour laws to provide accurate and timely employee compensation. Accurate and timely payrolls increase the levels of trust and satisfaction and raise the level of organizational integrity and improve the operation efficiency of your organization. As firms try to find their way through the maze of payroll processing, taking advantage of technology and keeping up with the shifting sands of ever-changing laws can still go a long way in making operations quicken and sustain growth in the business.

Frequently Asked Questions