Part of the responsibility of having a business is keeping and managing a lot of different records.
You name it, from initial onboarding records, documentation on how wages are determined, collecting tax records to accounting records, all this record-keeping can be quite a bit to keep up with!
But why is it so important to hold onto these records?
Because these records are crucial to payroll management.
Aside from accounting, payroll is one of the more complex processes in an organization and if not done accurately, it can be very catastrophic for your business.
Additionally, the manner in which you are managing your payroll, whether successful or not, has a direct link to employee experience and satisfaction.
So, what is a payroll record?
Payroll records are documents containing important information that have anything to do with paying an employee.
Employers have the sole responsibility to safekeep payroll records of their employees.
Payroll records can include :withholding tax forms, payroll taxes, benefits and deductions, hours rendered, time off, pay rate and gross wages.
Before learning more about these employee records, here are some questions that you need to address in order to effectively manage payroll.
What is your payroll policy?
You need to define your policies on payroll first.This would include the following: pay, time and attendance, employee benefits, health insurance, loan deductions and more.
How do you onboard new employees?
After determining the payroll policy, a crucial step to payroll management is the onboarding of new employees.A new profile of each employee needs to be created by gathering all their personal data and information all rolled into one file or record in line with record-keeping standards like:
Social security number
Bank account details
What other information needs to be recorded?
You need to input data that will define gross and net pay with the following details:
Monthly/yearly salary or hourly wage
Number of hours/days worked each week
Time off (and the type of leave)
Allowances and reimbursements claimed
Easy HR helps your HR team manage employees through robust record-keeping and payroll functions.
Are you using a cloud based HR and payroll software for your payroll?
If you’re using a cloud based HR and payroll software that manages all HR and payroll processes, a lot of this information listed above will be automatically and easily recorded.Record-keeping is easier and more efficient and definitely less hassle.
Are you ready to calculate gross and net pay?
It is now time to calculate employees’ gross pay, as well as deductions and taxes due, so you can come up with the net pay.Doing calculations manually takes so much of your precious time and is not guaranteed at all to be flawless.This is the main reason why a Human Resource Information System (HRIS) is necessary for a more comprehensive and unified system.Best of all it is error-free.
Can you pay the employee salaries?
check if you have sufficient funds for the payout.If you’re using the HRIS and payroll systems that are connected to your bank account, the better it is so you will have a worry-free payroll distribution.In fact, it is highly recommendable – no ands, ifs , nor buts.With the right HRIS you are assured of a more reliable, efficient payroll management system.
Are you prepared to remit the deductions and taxes required?
You need to remit all taxes both voluntary and mandatory deductions, to the tax authorities.Keep in mind the respective due dates so you can have ample time to process all payments.
Are you able to give payslips and tax declarations to employees?
Distributing payslips and tax declarations to your employees is a requirement.Make sure that your HRIS and payroll system has a self-service portal so that it can provide adequate service for the employees to access all relevant information so that they can also download their payslips from it.
Properly organizing your payroll records can make it quicker to find information when you’re in a hurry.