In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. Ultimately when it comes to inputs, it is HR only – to provide the inputs that are essential to process the payroll. As HR play a pivotal role in salary fixations and finalization of other monetary things to the employees, it is always better to handle the payroll by HR only. Accounts personnel have to act as a watch dog in case of any deviations and audit accordingly in case of discrepancies and to ensure that proper approvals are there.
The HR department is responsible for motivating employees, and to this end, they reward employees by developing compensation packages that may include holiday or midyear bonus awards and salary increments. Salary is a fixed amount of money or compensation paid to an employee by an employer in return for the work performed. Payroll is the administration of financial records of employees’ salaries, wages, bonuses, net pay, and deductions. The HR Payroll module includes a generic payroll engine that handles everything required to compute HR salary slips, the taxes to pay, etc.
The usual components of the salary structure (in india) include:
- Basic Salary
- House Rent Allowance
- Special Allowances
- Leave Travel Allowance
- Medical Allowance
- Employee Stock Options
As a small business owner, making sure your payroll runs smoothly is a top priority. For small businesses with dozens or even hundreds of employees, completing your payroll is nearly a full-time job. In addition to making sure employees are paid accurately and on time each month, you need to complete all your payroll tax responsibilities. From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations. Impulse Software Solutions offers it’s customers a diversified group of financial fulfillment tools designed to streamline financial processing tasks. we are here to help you identify HR software that will best fit your organizational needs. The Impulse Software Payroll executive team surrounds its clients with the professional staff needed to always insure that our customers receive the exceptional service that they deserve.
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