All About Payroll Compliance For Employees Management

Payroll compliance refers to the legal regulations and laws that companies or organizations must obey wrt the treatment of their human resources i.e. their employees and staff. To understand payroll compliance or statutory compliance, we must first know what payroll is all about. Payroll is simply a list of a company’s employees which is used for the computation of the total amount of money that a company invests in its human resources. In short, Payroll is a record of its employees' salaries & wages, held back taxes and bonuses. Some of the basic features of payroll include personal and financial information of employees, salary calculation, employee benefits, TDS deduction, attendance upkeep, taxes computation, and leave record management.

A few Important Aspects of Payroll Software are as Follows

• Documentation
• Employee record upkeep
• Salaries, Bonuses, and Benefits
• Insurance and Healthcare
• Scrutiny

Payroll for Human Resource Managers should be well-versed with compliance and major laws associated with that as they hold a big responsibility in an organization and repudiating with the Statutory compliance may get an organization in a troublesome situation. (Statutory compliance are the legal aspects with which an organization should comply).

Statutory compliance in payroll means the laws and legal obligations to which HRMs need to adhere. Every organization follows the statutory obligation, standards, and norms in conjunction with its own set of rules and regulations. HR manager plays a pivotal role in a corporate body and so he/she is responsible to take care of different laws which are related to employees, salary, bonus and wages.

We are highlighting some of the major laws and acts wrt payroll complaisance in India.

• Minimum Wages Act, 1948.
• (ESIA) Employees’ State Insurance Act, 1948
• EPFO (Employee Provident Fund Organization), 1952
• Payment of Gratuity Act, 1972
• Section 196 of the income tax act, 1995- TDS (Tax Deducted at Source)

In some companies, HRMs execute payroll compliance audits to confirm the adherence of the company to the government rules and regulations and the fair treatment & compensation to the employees.

HR and payroll compliance procedure is interconnected. As a matter of fact, almost in every organization, the HR department manages the payroll. Payroll compliance checklist, which is a list of tasks, along with audit ensures HRMs that all tasks have been carried out & accomplished and further brings a note to any inconsistencies which may lead to hefty penalties & fines.

HRMs are responsible for payroll and payroll compliance. However, because of the heavy workload and multiple tasks, organizations have begun using software such as Gen Payroll for their payroll processes. Gen Payroll is the most leading payroll software developed by a Jaipur-based software company- SAG Infotech. Gen Payroll software for HR managers (https://saginfotech.com/GenPayroll.aspx) is based on an innovative approach and ensures automation, accuracy, and alacrity.

Among the vast array of payroll software, one can opt for the one which best suits the needs of the organization. But we would recommend the one which is an all-inclusive and one-stop solution for any HR need, backed by all day long customer care service.

In the digital scenario and high competition, Payroll software has become an inevitable need for every small and big company. Some of the reasons why payroll software has indispensable are as follows:

• Knocks off the legal tussles, penalties, and fines.
• A secure and compliant work attracts highly skilled professionals to the organizations.
• Get the company in the good books of government and the general public.
• Helpful in efficient and effective fund allocation within a company for human resources as well as fresh initiatives.
• Fully competent organizations are likely to uphold the image and reputation of the company which further elevates the value of stock value and so profits.
• Compliance raises the level of integrity within the employees to carry which further encourages the morale and long-term efficiency of an organization.

For any queries about payroll and its compliance, Please contact SAG Infotech to make your business paperless with Gen payroll software (https://blog.saginfotech.com/business-paperless-gen-payroll-software).

Sag Infotech offers multiple taxation software for a wide field of professionals to cater to their needs in the tax world. The company is running for nearly 2 decades and possess 50 thousand + clients across India.