Payroll processing consist of calculation of payments to employees for their work in the company â€“ whether it is based on time or productivity, calculation of benefits, and statutory deductions. Payroll needs to be processed by each company periodically. It may be processed weekly, bimonthly, monthly or daily (for daily wage workers).
Payroll calculation is a complicated process that varies from company to company. Each company may have its own payroll structure consisting of various payroll components that may be unique to that company only. In addition, many location specific laws such as labor welfare act, Payment of salary and wages act, and the Minimum wages act affect the payroll calculations. Under minimum wages act, the employees need to be given some mandatory salary components such as Basic, DA, and HRA.
Payroll processing involves accurateÂ payroll calculations, disbursal, payslip generation, and managing payroll taxes and record keeping compliance. All these activities cannot be rushed into and must be performed using aÂ payroll softwareÂ to ensure that employees do not get erroneous paychecks and all statutory compliances are met.
We at TaxFreedom, ensure that professional payroll management services are provided, so you can focus on your business leaving all your payroll tensions with us.