“To achieve something concrete, one must take multiple small steps”, that is what we should do with the payroll. From initial stage means defining the payroll policies till pay out to the employees, every step of this process must be taken in such a way that does not lead to non- adherence of statutory compliances causes any penalty and gives satisfaction to the employees and employer both.
Stages of Payroll Processing
- Pre-Payroll preparation:
- Defining and drafting of Payroll Policy
- Defining the components of Salary Structures
- Payroll Calculation:
- Data Collection
- Data Validation
- Payment calculation
- Post-Payroll process:
- Data recording for management
- Paying and filing of Statutory dues
- Pay out to employees
To avoid some costly payroll errors that might lead to financial mistakes, employees’ s grievances or legal penalties, it is important to follow the exact payroll process.
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