We agree that processing India payroll is quite a tough task in itself. You may ask why? It is so because there are a lot of things to manage. So, if you are a payroll manager, it is normal for you to realise later that you have committed a mistake. But, what if I say you can prevent them all? Read the blog below to know the mishaps that occur commonly so that you can prevent them.
1. Failure to process the payroll on time-
Online payroll software in India are many but not all of them are proficient in processing the payroll error-free. Not just human can make spreadsheets wrongly but software can also do so. If you want to pay people on a consistent basis with the right amount, you should choose a great software. If you fail to pay the employees timely, you can face a penalty.
2. A lack of record-keeping-
When keeping good records is not a practice in your office, this happens. While processing payroll even if it is automated, it is necessary to check if the record is right or not. You cannot completely rely on Online payroll software in India.. For instance, the software may not be reflecting attendance or leave requests, etc. Moreover, if the law is not taken care of, or the appointment letter format has been referred while extending the appointment letter but that employee is not entered in the data on time, you will have to enter the data at the end time and that will make the data error-prone. So, save yourself from this by keeping every document and updating it in the software or spreadsheet.
3. Confusion about the taxable and non-taxable benefits-
There are various taxable and non-taxable benefits and mixing them up in your mind can cause trouble. So, be clear about health insurance, income tax and gift cards, reimbursements, etc. All of this can change the amount you should remit or withhold, so be careful with that.
4. Issues with Holiday Pay
There are different formulas in the software to use when you have to calculate, paid days, vacation days and holidays etc. This also requires special care and attention. A proper track of this should be kept.
5. Calculate Overtime Pay
If the employees are given the option to get paid for the overtime they do, you should set the terms and conditions and the minimum amount in place too. You can also give them a leave option in place of the overtime they did, i.e compensatory off.
So, now you know the payroll mishaps and in no way should you be having trouble in analysing which ones you commit. After knowing what you do and what you don’t, try to be a little more careful while processing payroll. Also, make sure you use great software for payroll management. Otherwise, payroll will continue to be a pain in your neck.