Get to know how payroll is being processed
Payroll processing is always a complicated task because there are lot of things that the human resource (HR) department has to do. They have to get all the accurate details of the employees and calculate the amount of payment that he or she is supposed to get. This will be the most painstaking task that the HR department has to perform in an organisation. The steps followed in the payroll processing are given in the following passages.
Payroll processing steps
Primarily the authorities should schedule the right time to start processing the payroll so that they can make the payment to the employees on time. Since there are lot of things that have to be performed, the HR department will initiate that earlier. Generally payroll processing will be started before three days to the regular pay day.
Once the details have been collected, the managers will check whether they have to make any changes in the employee details because sometimes the employee might have changed his address or bank details. Similarly the managers may have to make some deduction in payroll, health benefits etc. Therefore they will analyse those things before moving on to the next step.
Some of the organisations will calculate the salary on the basis of the amount of time that the employee has worked in the organisation. In such cases, the managers will have to check the timings properly and add those details to the payroll software for calculating the salary. However sometimes, they may not able to add the timing calculations to the payroll software. In such situations, the managers will prefer some other methods to enter the details.
If the employee has to get any bonus or rewards with the salary, those details will be enquired and the particular amount will be added to the entire amount. Sometimes, the employee may have to get payment for the previous months and that amount will also be calculated and added to the payroll details. Since it is financial process, they will pay more attention to the payroll and finalise the report properly.
Once everything is entered and finalised, the reports will be printed for the final evaluation. The managers use to check whether all the details have been entered properly in the payroll. If everything is clear, the payment will be processed and the amount will be transferred to the employee’s bank account and the person can withdraw it. The payment processed reports will be submitted to the organisation for the further reference.