COMPENSATION MANAGEMENT
Contd...
Payroll Management Process
Calculation of gross salaries and deductible amounts is a tedious task which involves risk. Some of the organizations use the traditional manual method of payroll processing and some go for the advanced payroll processing software. An organization opts for any of the following payroll processing methods available::
Manual System
Manual payroll system is the traditional payroll system which involves pen and ink, adding machine, spreadsheet, etc instead of computers, software and other computerized aids. The process was very popular when there were no computerized means for payroll processing.
Now-a-days it is only few small scale organizations in the remote areas that use the manual payroll. Sometimes the construction industry and manufacturing industry also use the manual payroll systems for the contractual labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time consuming and risky as it is more prone to errors.
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Accountant
Accountant is a professional having a degree/diploma course in finance/accountancy. He/she is responsible for all the activities related to payroll accounting. He/she has the sound knowledge of accounting principles and globally accepted standards.
The process adds costs to the organization. It involves paying someone who is responsible for calculating the salaries of others. The financial control regarding salary goes in the hand of accountant.
Payroll Software
In today’s computerized environment, payroll system has also developed itself into automated software that performs every action needed by the payroll process. It helps in calculating the payable amounts and deductions very easily. It also helps in generating the pay slips in lesser time. Automated calculations result in no errors. Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.
Payroll Outsourcing
Payroll outsourcing involves a third party (an outsourcing company) in the calculations of salaries and deductions. The outsourcing organization is responsible for all the activities of the payroll accounting. It saves time and cost for the organization. If there is more number of employees (say more than 900-1000) in the organization, payroll outsourcing would be very much beneficial.
The data is provided to the consultants/outsourcing firms. The various payroll functions undertaken by the outsourcing organizations are as follows:
Analysis of Payroll records, payroll taxes
Medical claim processing
Employee Insurance & Provident fund processing
Quality Audit procedures & planning
CRK
From India, Vijayawada
44Contd...
Payroll Management Process
Calculation of gross salaries and deductible amounts is a tedious task which involves risk. Some of the organizations use the traditional manual method of payroll processing and some go for the advanced payroll processing software. An organization opts for any of the following payroll processing methods available::
Manual System
Manual payroll system is the traditional payroll system which involves pen and ink, adding machine, spreadsheet, etc instead of computers, software and other computerized aids. The process was very popular when there were no computerized means for payroll processing.
Now-a-days it is only few small scale organizations in the remote areas that use the manual payroll. Sometimes the construction industry and manufacturing industry also use the manual payroll systems for the contractual labour, as theses contracts are on daily/weekly basis.
There is full control in the hands of owner. But the process is tedious, time consuming and risky as it is more prone to errors.
<image no longer exists>
Accountant
Accountant is a professional having a degree/diploma course in finance/accountancy. He/she is responsible for all the activities related to payroll accounting. He/she has the sound knowledge of accounting principles and globally accepted standards.
The process adds costs to the organization. It involves paying someone who is responsible for calculating the salaries of others. The financial control regarding salary goes in the hand of accountant.
Payroll Software
In today’s computerized environment, payroll system has also developed itself into automated software that performs every action needed by the payroll process. It helps in calculating the payable amounts and deductions very easily. It also helps in generating the pay slips in lesser time. Automated calculations result in no errors. Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.
Payroll Outsourcing
Payroll outsourcing involves a third party (an outsourcing company) in the calculations of salaries and deductions. The outsourcing organization is responsible for all the activities of the payroll accounting. It saves time and cost for the organization. If there is more number of employees (say more than 900-1000) in the organization, payroll outsourcing would be very much beneficial.
The data is provided to the consultants/outsourcing firms. The various payroll functions undertaken by the outsourcing organizations are as follows:
Analysis of Payroll records, payroll taxes
Medical claim processing
Employee Insurance & Provident fund processing
Quality Audit procedures & planning
CRK
From India, Vijayawada
Dear CRK Sir,
Thanks a lot for the wonderful thread. Was very insightful and helping. :)
P.S. I am new to the forum and still not very used to the working of the forum. The major problem i am facing right now is i can not download anything from any thread whether its a doc/ppt/pdf. Tried both Firebox and Chrome. Everytime i get a pop-up which reads like this- you can not download more than 1 file in 2 minutes. Even if i try to download after hours i get the same error.
From India, Delhi
Thanks a lot for the wonderful thread. Was very insightful and helping. :)
P.S. I am new to the forum and still not very used to the working of the forum. The major problem i am facing right now is i can not download anything from any thread whether its a doc/ppt/pdf. Tried both Firebox and Chrome. Everytime i get a pop-up which reads like this- you can not download more than 1 file in 2 minutes. Even if i try to download after hours i get the same error.
From India, Delhi
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