The process involved in the management of the employee payment is called the payroll. It will have all the details of the employees. In small business it is generally handled by them itself. But if there is an increase in the employee count, It is better to outsource it as it would save time. It is wise for the people to buy the payroll software in order to comply with the state and the federal law.
Steps for payroll processing
- Choose payroll system
- Create payroll policy
- Gather employee information
- Set up direct deposits
- Establish time tracking system
- Collect employee timesheet
- Approve and submit employee payroll
- Report and update payroll records
Choose payroll system
There are three types of payroll systems namely
- Manual
- Outsource
- Payroll software
The manual payroll is when all the details and other data are maintained annually by the company. The outsourcing happens when someone else is hired to do the payroll process. The payroll outsourcing companies in Chennai can be contacted to the process. The payroll software is fully online and provides automation and it will give all types of software from the basics.
Create payroll policy
Before creating, one should check about all the local and the federal laws. One of the most violated laws is unpaid overtime which is caused by accidents. The pay dates should include how long the employee works in a day and when they will get paid. It should be stated how the employee will get paid that is either by direct deposit or by check. The payroll deduction and how the benefits given by the company will affect the payroll.
Gather employee information
This document will give all the details about the employee, their social security number, and tax filing status. The employee’s w-4s, i-9s and the withholding should also be included. The employee health insurance and the retirement saving document should also be included in it. If the payment is through direct deposit then the consent and the banking information are to be collected.
Set up direct deposit
It is easy to do the payment process through direct deposit for both the owner and the employee. So for doing it all the required details about the banking are to be collected. Once all the required is collected then the next process is to update it in the payroll software or the bank.
Tracking time card
So when all the information is collected then it is time to run the time card. It will record the amount of time the employee works. With that when it is uploaded in the software it will calculate the end amount for the payment.
Approve and submit payroll
Once all the process is done then it comes to the place where approval is required. It is mainly for the employees who work on an hourly basis. So when they are checked it can be processed.
Report and update payroll records
Once all the process is made and the checks are sent out then comes the place where all the records which include the taxes and the withheld information are to be added. The taxes made by you are to be added.
To run a company properly in India one can look for the payroll services in India to do the job for you.