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Payroll/HR management processing

Our services include Monthly Payroll processing, TDS Filing, ESI Filing, and PF Filing. With our LEDGERS compliance platform, you can easily manage employee data, track attendance, generate pay slips, and automate payroll processes. Our software also gives you a real-time view of your financials, enabling you to make informed decisions.

What is Payroll processing?

Payroll is a list of employees that are paid by the company. Payroll is the total amount the employers pay to the employees. A payroll function involves the development of an organization pay policy that includes flexible benefits, leave encashment policy.

Payroll management also includes payslip components like basic, variable pay, HRA, and LTA. and also gathering other payroll inputs like the organization’s food vendor supply, etc.

Payroll and HR management also involve releasing the employees’ salary, depositing the dues like TDS, PF, etc with appropriate authorities, and filing returns.

Put together Payroll processing includes the calculation of the Net Pay after the tax adjustments and other deductions.

Payroll processing and HR management

  • Payroll processing and HR management is a highly complex task for most small businesses due to the various compliance requirements in India.
  • Most startups do not even have a well-established HR system and processes leading to a discrepancy in hiring the top talents, retaining good employees, and even while building a productive workplace culture.
  • By outsourcing payroll and HR management to IndiaFilings, an individual can enjoy a stress-free and error-free payroll cycle every month.
  • Also, our HR experts can help in implementing world-class HR processes in the organization from day one to support the growth of the business.

Payroll processing in India

Pre-Payroll Activities

Defining payroll policy

The first step is wherein the policies to the bank during the payroll processes need to be established. These policies need to be approved by the management to turn these policies into standards. Policies like the Pay policy, Attendance policy, leave and benefits policy, and more.

Gathering inputs

At this stage, the inputs are gathered from various departments to ensure the accurate calculation of the payroll.

Source of DataData Example
EmployeesIncome tax declaration, facilities availed, and more
HR teamSalary structure, eligibility for benefits
Finance teamDeduction for recoveries
Leave and attendance systemsData from attendance systems, current work shift, etc.
General service providersTransport service provider, canteen vendor, etc.

This data collection can seem tedious at first but registering with IndiaFilings will make it more hassle-free.

Input validation

It is necessary to verify the validity of the data once it is gathered as a minute mistake can ruin the entire payroll process.

It is necessary to ensure that the list contains all the active employees and no records of inactive employees. Checking the data whether it adheres to the company policy. Ensure the present in the right format.

This step is when the validated input data is fed into the payroll system for actual payroll processing. The result is the Net pay after adjusting the necessary taxes and other deductions.

Once the payroll process is over it is always better to reconcile the values and verify the accuracy to avoid further errors.