Payroll processing consists of the steps needed to pay employees each period, and involves tracking hours worked, deducting money for employee benefits, and remitting payroll taxes. Establishing a solid payroll process helps employers avoid penalties for breaking Department of Labour laws (minimum wage, unpaid overtime), and payroll software makes it easy.
The Payroll Process:
The payroll process begins after we hire our first employee. Each pay period, employees work and must be paid based on a calculation of the hours they work and their pay rate. Before giving the employee a pay check. however, we need to withhold money for expenses like state and federal taxes, unemployment, and insurance.
The result of subtracting an employee’s tax withholdings and benefit deductions from their gross pay (hours worked x hourly pay rate or salary per period) is net pay. Once net pay is calculated, we pays our employees in the form of a paper check, direct deposit, or payroll card.
Here are some of the payroll services that we provide:
• Employee Self Service (ESS): Online technology for employees to view salary slip, submit IT declaration, decide FBP, submit query.
• Online Access to View/Print Salary Slip
• Automated Attendance, Leave Import/Export Solution
• Web-based Leave Solution
• Reimbursement Management
• Replace Excel to Web-based Processing of Payroll, Reimbursement, F&F, Reports Generation, E-challan Generation
Effective payroll administration can be a catalyst for this transformation. When you don’t want to manage all payroll processes in-house, you can think of payroll outsourcing to an experienced provider such as Alp.
As a reliable payroll outsourcing company, we offer better and more efficient payroll management process for your organisation.
BENEFITS OF OUTSOURCING PAYROLL:
Some of the benefits of outsourcing payroll management include the following:
• Fast turnaround
• Assistance throughout the entire life-cycle of the employee, right from the day of recruitment to exit
• Streamlining of all payroll processes
• Reduced investment in IT infrastructure
• Well thought-out resource deployment
• Strict adherence to compliance and statutory requirements
• Error-free documentation and reports
• Solid business intelligence that helps top management with their strategic initiatives
• Low-risk of penalties due to non-compliance
• Speedy and efficient resolution of all employee issues
Count the hours:
Verify hours worked against the time card data to make sure paying each employee for the correct number of hours worked in the pay cycle. Each payroll system will have a different way to verify this data. Determine overtime:
We are doing this manually, we are watching for any employees who worked over 40 hours a week, and pay overtime (time and a half) for those hours.
Overtime is Paid at Time & a Half :
Calculate gross pay: Multiply the pay rate times the hours worked to come up with the gross pay. If more than one employee, this becomes a time-consuming activity. We’ll need to ensure the employee’s regular or straight-time pay rate for regular hours, and overtime pay rate for overtime hours. In addition, we’ll need to add any variable pay for bonuses, commission, and other similar payments.
Regular Pay + Overtime Pay = Gross Pay :
Addition of those two kinds of pay (regular and overtime) together to come up with the total gross pay. As we are using a payroll system, we are able to accomplish this calculation by pressing a button to calculate employee’s gross pay.
As we provide payroll manually, we determines the amount of deductions, such as benefits, taxes, and insurance, that need to be taken out of the employee’s gross pay each pay period. However, by using a payroll system, we simply need to verify that the correct deductions are set up once.
Processing payroll accurately and consistently is necessary for a number of reasons. First and foremost, you’re legally obligated to pay your employees. Failing to pay them on time will damage your company’s reputation, and you’ll face the legal repercussions.
Paying employees consistently and on time demonstrates your company’s financial stability. It also impacts employee morale, safeguarding their trust in your business. Accurate payroll processing is also crucial to remain compliant with federal and state laws. Legislative changes can be complex. You need to mitigate risks like lawsuits, fines, and penalties by maintaining compliance.