Monthly Payroll implies the payment made to employees per month. As payroll and payroll taxes are subject to laws, they highly impact the net income of many organizations from the accounting aspect. From the aspect of human resources, the payroll department is equally significant as employees are always concerned when it comes to payroll irregularities and errors. Moreover, the payroll paid timely and accurately also boosts the morale of employees. Undoubtedly, payroll department needs to be very active in order to make payments precisely and timely with the accurate with holdings and deductions. Monthly Payroll, if handled by our professional experts not just ensures accuracy and timeliness in the payments but also leads to the maximum contentment of employees, boosting their morale.
Why Monthly Payroll is Best for Employees?
- Makes it easy to stay organized in terms of paying the required taxes
- As household expenses and bills are due monthly, monthly payments simplifies budgeting
- Only permissible amount is deducted from your salary in case of partial day off
- Employee receives a guaranteed amount of pay every month which further makes them satisfied
- Salaried employees not only rank higher in the corporate but also receive competitive benefits and bonuses.
Every company or establishment has its own payroll structure that may differ from other companies. The complex payroll structure comprises of several payroll components and elements. Apart from this, many different laws such as payment of salary and wages act, labor welfare act and the minimum wages act also effect the payroll calculations.
In order to ensure an effective payroll processing in the organization, accurate payroll calculations, disbursal, payslip generation, record keeping compliance along with proper management of payroll taxes should be taken into account. Monthly payroll structure in an organization ensures the contentment of employees and financial stability.
As per minimum wages act, the employees have to be provided with various obligatory salary components such as Basic, HRA and DA. When it comes to TDS deduction, if the employee’s salary is more than the amount exempted from tax, employers are required to deduct TDS under section 192 of the Income tax Act, 1961.
Roles & Responsibilities
In most cases, the most important person involved with payroll will be a payroll coordinator. This individual has numerous roles and responsibilities for their respective accounting department, which can include being the liaison between employees, payments, and the Payroll Office and processing OPUS entries (hiring, budget number changes, leave of absence changes).
Payroll coordinators are also responsible for entering employee hours into the Time Reporting system for payroll processing. After payroll has been processed, there needs to a be review of each employee payroll. If the coordinator catches an errors, such as underpayments or over payments occur, it is their responsibility to work with the Payroll office to correct these errors.
Depending on the size of your business, the payroll department could also include management (payroll supervisor, payroll director/manager), staff (payroll technician/assistant, payroll practitioner, payroll administrator), and technical manager, (data entry, system analyst, payroll system coordinator).
Always remember, no matter the role or position, the payroll department is in charge of:
- Pay Day. Selecting the schedule, every week or once month, to pay employees. The payroll department calculates employee wages, withholds the proper tax amount, and issues the paycheck.
- Paying Payroll Taxes. Paying the federal and state taxes that are withhold from employees, along with any business taxes.
- Filing Tax Forms. Most businesses must complete and fill tax forms every quarter, so that the government knows who has been paid and which taxes have been taken out.
The payroll department should also be aware of Federal and State deadlines and calculating and correcting hours, wages, tax holdings, and benefits.