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All About Payroll Compliance For Employees Management

Author: John Den Mark
by John Den Mark
Posted: Aug 19, 2019
payroll compliance

Payroll compliance refers to the legal regulations and laws which 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 which a company invests in its human resources. In short, Payroll is a record of its employees' salaries & wages, held back taxes and the 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 organisation in a troublesome situation. (Statutory compliance are the legal aspects with which an organisation should comply).

Statutory compliance in payroll means the laws and legal obligations to which HRMs needs to adhere. Every organisation follows the statutory obligation, standards and norms in conjunction with their 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 company to the government rules and regulations and the fair treatment & compensation to the employees.

HR and payroll compliance procedure is interconnected. To the matter of fact, almost in every organisation, the HR department manages the payroll. Payroll compliance checklist, which is a list of tasks, along with audit ensure HRMs that all tasks have been carried out & accomplished and further bring 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 manager 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 organisation. 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 the highly skilled professionals to the organizations.
  • Get the company in 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 organisation.

For any queries about payroll and its compliance, Please contact SAG Infotech to make your business paperless with Gen payroll software.

About the Author

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 25 thousand + clients across India.

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Author: John Den Mark

John Den Mark

Member since: Mar 07, 2019
Published articles: 12

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