Employee payroll management involves multiple steps, including calculating working hours, finalizing deductions, determining employee pay, and documenting payroll records. Payroll managers have to manage each one of these steps with care to make sure there are no errors, maintain compliance, and keep employees satisfied. Managing these payroll operations manually without a proper system can be tiring. That’s why organizations across industries are adopting cloud-based, online systems that automate payroll management and save teams from unnecessary administrative burdens.
If you are wondering how to set up your payroll operations, here are five steps to do so:
Prepare prerequisites like EIN, PAN, and TAN based on the payroll laws governing your region. Define your leave and attendance policies, and define a pay rate for employees based on their employment type.
Select an online payroll system with end-to-end automation. Since your employees will be using the system regularly, select a system that is user-friendly and has features that ensure data privacy and security.
Set up the payroll system with all required information, including employee names, contact details, personal information, salary range, deduction summary, pay schedule, and pay rate.
Review the data once again and make sure your system is in line with applicable payroll laws. Run your payroll once everything is set and confirmed.
Ensure that the key payroll records like pay slips, reimbursement documents, gross pay, and W-4 forms, are documented properly in your system.
Read more about how organizations can set up their payroll operations online in our HR Knowledge Hive.