Payroll - HR System
Your Simple Guideto PayrollWHITEPAPERwww.zenhr.com
THE IMPORTANCE OF PAYROLL MANAGEMENTPayroll is an integral part of any business and it is an important HR / accountingfunction that needs to be handled with the utmost caution and confidentiality.While payroll processing is known to be very time consuming and hectic, makingsure that this process is as efficient and streamlined as possible plays an importantrole in protecting your company's reputation by ensuring compliance with variouslegislations as well as labor laws in your country.HERE ARE SOME IMPORTANT PAYROLL FACTORSTO KEEP IN MIND:www.zenhr.comTypes of PayMost companies have different types of Pay Schemes, such as salaries, wages andcommission. The way each person in the company gets paid varies based on thetype of their employment contract including full-time, part-time, freelancers,contractors etc.Tax WithholdingCompanies must withhold taxes from each employee’s salary or wage accordingto local taxes and social security laws.Benefits and DeductionsAny benefits and deductions you provide your employees with and you add totheir employment contracts such as health insurance, childcare, educationassistance, overtime pay, or any other item should be included in calculatingpayroll precisely.Failing to calculate payroll properly according to your country’s lawsand regulations will result in penalties and fines to the company.1
www.zenhr.comBASIC STEPS IN PAYROLL2
BASIC STEPS IN PAYROLLPayroll processing includes 3 basic stages:Stage One:Pre-Payroll Preparations1. Setting a clear payroll policyAs a first step, a standard and clear payrollpolicy should be identified and clearlycommunicated with all employees.www.zenhr.com2. Gathering dataThe task of gathering employees’ data to beused in payroll processing is one of the mostimportant and complex tasks of payroll andit is usually done by the HR and financeteams.Salary-related data includes employee timeand attendance schedule, leaves andvacationdays,employeeposition,organizational structure, and market rate.3. Data ValidationMost payroll mistakes occur due to incorrectpayroll data. That’s why validation becomesessential in keeping your payroll process ontrack.By validating your payroll data, you canavoid costly payroll errors that might lead tofinancial mistakes, employees’ grievances,or legal penalties.Stage Two:Payroll CalculationOnce all employees’ data is gathered andvalidated, you can start processing payrollto calculate the net pay through a manual oran automated payroll processing system.*Net pay gross salary - gross deductionsGross Salary regular salary any allowances any one-time benefitGross Deductions regular deductions (socialsecurity, medical insurance, childcare, or anydeductions highlighted in your payroll policy) any legal deductions any one-time deductionStage Three:Post Payroll Reporting & RecordingAll companies – whether small or large need to keep records of all financialtransactions including salaries. Thoserecords are to be sent to the accounting orfinance department. This allows you todocument all salary reports so you canextract any needed payroll data in an easyand organized manner.3
www.zenhr.comPAYROLL PROCESSING OPTIONS4
PAYROLL PROCESSING sadvantagesIN-HOUSE MANUALPAYROLL PROCESSINGA designated employee inyour company calculatesthe payroll manually onpaper or using a computerized spreadsheets suchas Excel. Inexpensive No startup costs Time-consuming Error-prone Environmentallyunfriendly It needs continuousmonitoring of changesin relevant laws andtaxesOUTSOURCEDPAYROLL PROCESSINGThe company assigns anexternal payroll servicesprovider to handle allpayroll-related matters. Time-saving/productivity Accuracy Lower error risks Additional costs Lack of control overyour payroll processes Confidentiality andprivacy threatsAUTOMATED PAYROLLOpting for a HumanResources ManagementSystem (HRMS) with apayroll module that allowsyou to manage your payroll processes automatically. Time saving Secure Lower error risks Automatic databackup No need for expertise Tax updates andlocalization Automatic systemupdates Support Environmentallyfriendly Data storage Subscription costs Training employeesto use the system Updates downtime5
www.zenhr.comHOW TO CHOOSE THE RIGHTPAYROLL SYSTEM6
HOW TO CHOOSE THE RIGHT PAYROLL SYSTEM;MANUAL, OUTSOURCED, OR AUTOMATED?Choosing the best payroll system that fits your company needsdepends on the below important factors:1. Company Size (Number of Employees)www.zenhr.com Small companies (Less than 10 employees)If you run a business that has less than 10 employees, it’s very likelythat you or anyone in your team calculates payroll manually usingspreadsheets. While you might be able to rely on one accountingemployee to handle this task for the time being, as your companygrows, you need to be able to scale payroll processing as well.2. Complexity of Your Payroll ProcessThe optimal payroll process for your business depends also on theextent to which your payroll process is complex. If you have a oneclear pay scale with a few simple pay rates and basic benefits, amanual system that relies on spreadsheets might work for you, butthe more complex your payroll process is, the more essential it wouldbe to start using an automated payroll software or to even outsourcethe whole process.Most Human Resources Management Systems offer free services tocompanies with less than 10 employees, so a safer bet for you wouldbe to opt for an automated payroll module (such as ZenHR). Medium Companies (10 – 50 employees)For companies with more than 10 employees, it’s not feasible toprocess payroll manually. Subscribing to a payroll software is theoptimal solution for medium-sized companies. Automating Payrollallows you to stay up-to-date with payment timelines, taxes, and anyother financial related matters that can be managed with a click of abutton. Large Companies (More than 50 employees)Manual payroll processing is not even an option for large companieswith more than 50 employees as it would be very risky for oneperson to process payroll and to file taxes for many employees. Thebest solution in that case is to either hire an in-house payrollspecialist while opting for a payroll software that fits your businessneeds. Another good option would also be is to outsource all payrollmatters to an external service provider.www.zenhr.com7
www.zenhr.comTIPS FOR CHOOSING THEBEST PAYROLL SOFTWAREFOR YOUR BUSINESS8
QUICK TIPS FOR CHOOSING THE BEST PAYROLLSOFTWARE FOR YOUR BUSINESSOnce you make up your mind to move from a manual payrollsystem to an automated one, you should keep the below things inmind before taking the plunge: Cloud-Based Vs. On-Premise Payroll Systemwww.zenhr.comThere are two types of payroll software: cloud-based or on-premise.Whichever option you decide to choose depends on the type ofbusiness you run, your company lifestyle, and your personalpreference. However, a cloud-based software allows you to accesspayroll anytime and anywhere, through multiple computer deviceswhile ensuring that your payroll information is protected at alltimes. Integration with Other SystemsKeep in mind that it’s always better to choose a payroll system thatintegrates with other payroll related systems that you already usefor your company such as time & attendance as well as HR Software.It’s worth mentioning that some Human Resources ManagementSystems (HRMS) such as ZenHR provide a one-stop platform for allHR and Payroll needs. *Try ZenHR (HRMS) now for freehttps://www.zenhr.com/en/start trial?utm source Whitepaper&utm medium CTA&utm campaign w.zenhr.com/en/start trial?utm source Whitepaper&utm medium CTA&utm campaign Your%20Guide%20to%20Payroll%20Whitepaper ScalabilityYou should always look for a payroll software that is scalable andcan manage your payroll even if you’re facing new changes withinyour company such as hiring more employees or if you are lookingto expand in multiple locations. Ease of UseChoose a payroll software that is comprehensive yet user-friendlyand doesn’t need a lot of training and guidance to use.9
Get in touch.https://www.zenhr.com/en/start trial?utm source Whitepaper&utm medium CTA&utm campaign w.zenhr.com/en/start trial?utm source Whitepaper&utm medium CTA&utm campaign Your%20Guide%20to%20Payroll%20WhitepaperRequest a Demo on ZenHRhttps://www.zenhr.com/en/start trial?utm source Whitepaper&utm medium CTA&utm campaign w.zenhr.com/en/start trial?utm source Whitepaper&utm medium CTA&utm campaign Your%20Guide%20to%20Payroll%20WhitepaperOr get in touch:sales@zenhr.comwww.zenhr.com
an automated payroll processing system. *Net pay gross salary - gross deductions Gross Salary regular salary any allowances any one-time benefit Gross Deductions regular deductions (social security, medical insurance, childcare, or any deductions highlighted in your payroll policy)
Payroll flows are used for many of your payroll tasks. If you load data, calculate payroll and payments, run reports, or calculate and distribute cost results, you submit payroll flows. Monitor and manage each task and overall payroll flow in Payroll. Verify Your Readiness A good payroll run depends on many accurate and completed tasks.
Payroll/DM Lockout . 14 Payroll Confirmed. Payroll/DM Lockout . 15 Departments review Payroll Register Dashboard . Resume normal . 16 17 PAYDAY . 18 19 20 Martin Luther King. Jr. Day - Holiday . 21 22 23 PAR/DMX Deadline at 9am . PTR Deadline. 24 Payroll/DM Lockout . 25 Payroll/DM Lockout 26 Pay Period Ends: 1/13 – 1/26 Payroll/DM Lockout 27 .
master file data to the outside payroll service provider should not be involved in recording the payroll entries in the general ledger, preparing payroll reconciliations or distributing payroll checks. This employee should also not receive the copies of the final payroll reports (e.g., payroll registers) from the outside payroll service.
Glossary Term Definition DTPR - Department of the Treasury of Puerto Rico also referred to as "Hacienda". Net Payroll - Net payroll is equal to gross payroll less tax withholdings and other deductions. Payroll is paid twice per month on the 15th and 30th (or last day of the month, whichever comes sooner). Other payroll - Other payroll expenses relate to employee withholdings, social security .
HR & Payroll - Staffing L6 to L11 2. HR & Payroll - Hire Personnel 3. HR & Payroll - Terminate Employees 4. HR & Payroll - Time Recording 5. Performance Management 6. PMP - Salary Increase 7. PMP - Bonus 8. C&B Process - Job Evaluations (JE) 9. Vacation Processing 10. HR & Payroll - Payroll Data Maintenance 11.
Payroll Hotline: 817-299-6357 Payroll Email: payroll@misdmail.org . Mansfield Independent School District (MISD) Payroll Manual 6 of 37 September 2, 2020 SECTION 11.2 PAYROLL RUNS The Payroll Department is responsible for three types of payrolls each month: bi-weekly, semi-
Payroll Issues (cont'd) Checking your payroll - Payroll reports -Monthly, supplemental, CJIP, "RDS reports" are all listed on your payroll calendar - Rate Reports -From Andy each month - Pay statements -Available on the DFS/EIC website (In your handout & upcoming slide) - You only have to check your payroll changes (recurring payroll)
Detailed HR Payroll System Functionality 5 Payroll - Core** 478 criteria included within this worksheet 5.1 Legislation 5.2 Payroll types 5.3 Payroll frequency 5.4 Payroll set up 5.5 Employee details 5.6 Payments and allowances 5.7 Holiday pay methods 5.8 Tax credits 5.9 Statut
