Hi Colleagues,
Payroll includes the following :
1. Compensation, benefits and perks of employees firmed up in their appointment letters that is processed for disbursement of salaries, salary-related reimbursements, benefits and perquisites (monetary value), statutory deductions (PF/ESI, etc) retirals, annuities, ESOPs, equity, etc.
2. Preparation of salary/wage sheet/register and update it every month
2. Processing of employees salaries, salary-related reimbursements, benefits and perks on month-on-month basis including disbursement of cash under receipt (revenue stamp)
3. Processing of full and final settlement of employees as they leave the Company.
4. Taxation matters, investments, tax returns (Form 16, 24, etc)
5. Tax advisory and updates to employees
The responsibility of payroll function varies from organization to organization depending upon their departmental maturity and structuring in HR and Finance/Accounts.
Most professional and large organizations reduce the HR department's role to providing details of compensation, monthly attendance and temporary or permanent changes to compensation (increments, incentives, rewards, deferred payments, bonuses, etc) to Finance/Accounts while the latter department processes the entire compensation and updates it accordingly.
It is meaningful to restrict HR's role in payroll function to providing C&B details, Comp. changes, settlement details and attendance advises to Finance/Accounts and let them process the balance payroll (i.e maintaining the payroll register/sheet, calculating payments, disbursing salaries/benefits vide cheque/cash/direct bank transfers, etc. after tax and other deductions based on the Income Tax rules and investment of employees. Taxation is best handled by Finance/Accounts as it is their domain.
Hope this clarifies.
Rahul
09968270580
From India, New Delhi
11Payroll includes the following :
1. Compensation, benefits and perks of employees firmed up in their appointment letters that is processed for disbursement of salaries, salary-related reimbursements, benefits and perquisites (monetary value), statutory deductions (PF/ESI, etc) retirals, annuities, ESOPs, equity, etc.
2. Preparation of salary/wage sheet/register and update it every month
2. Processing of employees salaries, salary-related reimbursements, benefits and perks on month-on-month basis including disbursement of cash under receipt (revenue stamp)
3. Processing of full and final settlement of employees as they leave the Company.
4. Taxation matters, investments, tax returns (Form 16, 24, etc)
5. Tax advisory and updates to employees
The responsibility of payroll function varies from organization to organization depending upon their departmental maturity and structuring in HR and Finance/Accounts.
Most professional and large organizations reduce the HR department's role to providing details of compensation, monthly attendance and temporary or permanent changes to compensation (increments, incentives, rewards, deferred payments, bonuses, etc) to Finance/Accounts while the latter department processes the entire compensation and updates it accordingly.
It is meaningful to restrict HR's role in payroll function to providing C&B details, Comp. changes, settlement details and attendance advises to Finance/Accounts and let them process the balance payroll (i.e maintaining the payroll register/sheet, calculating payments, disbursing salaries/benefits vide cheque/cash/direct bank transfers, etc. after tax and other deductions based on the Income Tax rules and investment of employees. Taxation is best handled by Finance/Accounts as it is their domain.
Hope this clarifies.
Rahul
09968270580
From India, New Delhi
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