Payroll Management:

Payroll is defined as a method of administrating employees’ salaries in the organizations. The process consists of calculation of salaries and tax deductions of the employees, administrating the retirement benefits and disbursements of salaries to employees. It can also be called as an accounts activity which undertakes the salary administration of employees in the organization.

Administrating the employees’ salaries is not an easy task, the HR and accounts department work together to calculate and disburse the salary to the employees. Thus, payroll management can be further subdivided into two sub processes, i.e. Payroll accounting and payroll administration. Calculation of gross salaries and deductible amounts is a tedious task which involves risk. Some of the organizations use the advanced payroll processing software. An organization opts for any of the following payroll processing methods available:

Payroll Outsourcing:

Payroll outsourcing involves a third party (an outsourcing company like KCS) in the calculations of salaries and deductions. The outsourcing organization is responsible for all the activities of the payroll accounting. It saves time and cost for the organization. If there is more number of employees which an organization cannot handle independently, payroll outsourcing would be very much beneficial.

The data is provided to the consultants/outsourcing firms. The various payroll functions undertaken by the outsourcing organizations are as follows:

Payroll Software:

In today’s computerized environment, payroll system has also developed itself into automated software that performs every action needed by the payroll process. It helps in calculating the payable amounts and deductions very easily. It also helps in generating the pay slips in lesser time. Automated calculations result in no errors. Data is validated automatically by the software.

It needs professionals to make use of the software for its efficient working.