Dear HR,
I need a small piece of information rather quickly. What is the role of the accounts department in HR payroll in an organization with 200 employees? I am currently drafting the payroll policy, and any assistance you can provide would be highly appreciated.
Thanks,
Soofia
From India, Hyderabad
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I need a small piece of information rather quickly. What is the role of the accounts department in HR payroll in an organization with 200 employees? I am currently drafting the payroll policy, and any assistance you can provide would be highly appreciated.
Thanks,
Soofia
From India, Hyderabad
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The accounts department should be involved in various functions of the HR department. Once the HR processes the payroll, it should be accessible to the Accounts personnel so that they can make payments through the bank. The statutory contributions towards ESI, PF, etc., are not paid directly by the HR department but by the Accounts department only. Similarly, once the payment of a bonus is due or there is any payment of gratuity payable, intimation should go to the Accounts department only.
From India, Kannur
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4767From India, Kannur
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In an organization with 200 employees, the role of the Accounts Department in HR payroll plays a crucial role in ensuring accurate and timely salary processing. Here's an overview of their responsibilities:
1. Salary Calculation and Processing:
Accounts Department collaborates with HR to gather attendance and leave data.
Calculates salaries based on attendance, leave records, deductions, and additions (such as incentives, bonuses, etc.).
Ensures accurate tax calculations, statutory deductions (like provident fund, professional tax), and compliance with labor laws.
2. Taxation and Statutory Compliance:
Calculates and deducts income tax as per applicable tax slabs.
Ensures compliance with tax regulations, such as TDS (Tax Deducted at Source) and filing necessary returns.
Ensures adherence to provident fund, ESI (Employee State Insurance), and other statutory requirements.
3. Salary Disbursement:
Coordinates with banks to facilitate salary transfers and distribution of salary slips to employees.
Handles issues related to salary discrepancies, delayed payments, or deductions.
4. Record Keeping:
Maintains accurate records of employee salaries, deductions, allowances, and tax-related information.
Keeps a record of pay structure changes, promotions, transfers, and resignations for future references.
5. Financial Reporting:
Provides financial data related to payroll for the company's financial reports and audits.
Assists in budgeting and forecasting related to payroll expenses.
6. Compliance and Auditing:
Ensures all payroll processes align with labor laws, tax regulations, and company policies.
Prepares data for internal and external audits related to payroll.
7. Reconciliation:
Reconciles payroll accounts to ensure accurate financial records.
Addresses any discrepancies or errors that may arise during the reconciliation process.
8. Employee Queries:
Responds to employee inquiries related to salary, deductions, and tax-related matters.
Addresses concerns and clarifies doubts regarding payroll.
9. New Hires and Departures:
Coordinates with HR to ensure smooth onboarding of new employees, including setting up payroll accounts.
Calculates final settlements for departing employees, including pending salaries, dues, and applicable deductions.
In drafting your payroll policy, consider including the following aspects:
- Payroll Schedule: Specify the frequency of salary disbursement (e.g., monthly) and the cut-off dates for attendance and leave submissions.
- Salary Structure: Detail the components of the salary, such as basic pay, allowances, bonuses, and deductions.
- Statutory Compliance: Emphasize adherence to labor laws, tax regulations, and statutory deductions (PF, ESI, PT, etc.).
- Leave Management: Outline the process for leave application, approval, and its impact on salary.
- Salary Revision: Describe the process for salary increments, promotions, and related documentation.
- Confidentiality: Highlight the importance of maintaining confidentiality of payroll-related information.
- Dispute Resolution: Provide a mechanism for addressing salary-related disputes or discrepancies.
- Record Keeping: Specify the duration for which payroll records should be maintained.
- Reporting: Clarify the frequency and content of payroll reports provided to employees and management.
- Termination and Full and Final Settlement: Detail the process of settling dues for departing employees.
- Communication: Explain how employees will be informed about their salary details and changes.
- Employee Communication: Inform employees about how they can raise queries or concerns related to their payroll.
Remember that the policy should be aligned with both company practices and local labor laws. It's also beneficial to involve key stakeholders from both the HR and Accounts Departments to ensure comprehensive and accurate policy formulation.
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1. Salary Calculation and Processing:
Accounts Department collaborates with HR to gather attendance and leave data.
Calculates salaries based on attendance, leave records, deductions, and additions (such as incentives, bonuses, etc.).
Ensures accurate tax calculations, statutory deductions (like provident fund, professional tax), and compliance with labor laws.
2. Taxation and Statutory Compliance:
Calculates and deducts income tax as per applicable tax slabs.
Ensures compliance with tax regulations, such as TDS (Tax Deducted at Source) and filing necessary returns.
Ensures adherence to provident fund, ESI (Employee State Insurance), and other statutory requirements.
3. Salary Disbursement:
Coordinates with banks to facilitate salary transfers and distribution of salary slips to employees.
Handles issues related to salary discrepancies, delayed payments, or deductions.
4. Record Keeping:
Maintains accurate records of employee salaries, deductions, allowances, and tax-related information.
Keeps a record of pay structure changes, promotions, transfers, and resignations for future references.
5. Financial Reporting:
Provides financial data related to payroll for the company's financial reports and audits.
Assists in budgeting and forecasting related to payroll expenses.
6. Compliance and Auditing:
Ensures all payroll processes align with labor laws, tax regulations, and company policies.
Prepares data for internal and external audits related to payroll.
7. Reconciliation:
Reconciles payroll accounts to ensure accurate financial records.
Addresses any discrepancies or errors that may arise during the reconciliation process.
8. Employee Queries:
Responds to employee inquiries related to salary, deductions, and tax-related matters.
Addresses concerns and clarifies doubts regarding payroll.
9. New Hires and Departures:
Coordinates with HR to ensure smooth onboarding of new employees, including setting up payroll accounts.
Calculates final settlements for departing employees, including pending salaries, dues, and applicable deductions.
In drafting your payroll policy, consider including the following aspects:
- Payroll Schedule: Specify the frequency of salary disbursement (e.g., monthly) and the cut-off dates for attendance and leave submissions.
- Salary Structure: Detail the components of the salary, such as basic pay, allowances, bonuses, and deductions.
- Statutory Compliance: Emphasize adherence to labor laws, tax regulations, and statutory deductions (PF, ESI, PT, etc.).
- Leave Management: Outline the process for leave application, approval, and its impact on salary.
- Salary Revision: Describe the process for salary increments, promotions, and related documentation.
- Confidentiality: Highlight the importance of maintaining confidentiality of payroll-related information.
- Dispute Resolution: Provide a mechanism for addressing salary-related disputes or discrepancies.
- Record Keeping: Specify the duration for which payroll records should be maintained.
- Reporting: Clarify the frequency and content of payroll reports provided to employees and management.
- Termination and Full and Final Settlement: Detail the process of settling dues for departing employees.
- Communication: Explain how employees will be informed about their salary details and changes.
- Employee Communication: Inform employees about how they can raise queries or concerns related to their payroll.
Remember that the policy should be aligned with both company practices and local labor laws. It's also beneficial to involve key stakeholders from both the HR and Accounts Departments to ensure comprehensive and accurate policy formulation.
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Dear Sofia,
The role of the Accounts/Finance department is crucial for the entire company, with HR being one of the departments. The finance management of the company involves handling funds for various purposes such as wages for employees, raw materials, spare parts, taxation, and payment of other statutory liabilities.
The role remains the same regardless of the company's size.
Thanks,
From India, Mumbai
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The role of the Accounts/Finance department is crucial for the entire company, with HR being one of the departments. The finance management of the company involves handling funds for various purposes such as wages for employees, raw materials, spare parts, taxation, and payment of other statutory liabilities.
The role remains the same regardless of the company's size.
Thanks,
From India, Mumbai
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