In the context of today’s growing world economy, Payroll Management has become one of the most pressing business issues, which need proper attention from employees, the company’s leadership team. Payroll Management is simply understood as the implementation of a series of actions related to salaries and bonuses in a company, including: calculating salaries, developing a payroll system, finalizing taxes, withholding and paying social insurance. very simple, but above all, this work is also directly related to employee information management and also indirectly maintains relationships with employees, thereby creating a foundation for the implementation of personnel adjustment actions in the company. It can be emphasized that effective salary management is also one way to express the human resources vision of business leadership. When Payroll Management is done well, businesses can reap many great benefits such as:
* Attract talented people to work.
* Maintain a stable team of employees working for the company.
* Ensure fair treatment of all employees.
* Increase the productivity and quality of the workforce, resulting in high work efficiency.
* Create favorable conditions for all employees to survive and thrive with the company.
* Creating a sustainable foundation for the business to grow stronger and stronger.
Every business needs to clearly realize the importance of Payroll Management for the development of the whole company, and at the same time pay attention to discussing and proposing methods to implement wage management effectively. Otherwise, this will have a negative impact on employee motivation and become an obstacle to the development of production and business activities. Good wage control will help units use labor effectively, save costs, increase accumulation, and increase revenue for businesses and employees. Therefore, managers need to understand the characteristics of hired workers, what are the concepts of payroll management and common mistakes and procedures for controlling hired workers. Payroll Management Concept Wages are the main source of employee income and the cost element is the value of products and services created by the unit. Therefore, salary is of concern to many different subjects such as employees. Usually salary includes base salary and bonuses. In simple terms, Payroll Management is a stage in human resource management. This is the process of paying salaries and bonuses to employees in the company. Payment of reasonable and appropriate wages has a positive effect in motivating employees to be enthusiastic at work, increasing work productivity and employee engagement with the company. You also need to understand some basic concepts:
The salary level is the salary given to workers based on the quantity and quality of the worker’s workforce.
The wage rate coefficient according to State regulations is the basis for companies to rely on to pay workers according to the quality and working conditions when they complete certain jobs.
Salary is the amount of money paid to employees in units of time (hours, days, months) according to the level in the salary scale. Usually, the State only stipulates a level I salary or minimum salary with a salary coefficient of the appropriate rank.
The pay scale is the pay proportional relationship between the same or different positions in order and rank. Each level in the salary scale has a different rank coefficient and ratio of wages to the minimum wage.
Technical value standards are documents detailing the complexity of the work and the skill requirements of workers at a given level, what to know technically and what to do in terms of technical skills. There is a close relationship between the above concepts. Employees who complete well will be classified into the appropriate salary level. Of course, this decision can only be made after a thorough scientific evaluation has been completed.
Payroll management offers your employees organization and consistency which also provides them with a dedicated system for handling complaints. A good Payroll Management System can help a business with the following:
Improve employee morale
If your employees feel their jobs are unstable and they are not being paid on time, they may start looking elsewhere. Payroll Management System will ensure that all last minute errors and manual errors are handled so that the morale of your employees is always high.
Lower tax bill
If you don’t manage your employee records, you may end up in a situation where you have to pay fines for mismanaged records. It is important that taxes and TDS are deducted from paychecks and these are properly recorded. In this case, Payroll Management software can help and help you reduce the chances of paying legal fines.
Payroll management helps even new startup owners
If you are a new startup owner, you will have to wear a lot of hats in the early stages. One of them is managing payroll. Now, instead of doing this yourself and risking manual errors, you can use established management software and take care of your company’s finances.
Payroll management can reduce overhead costs
Instead of shifting your paycheck to someone else, doing it yourself will save you a lot of money. Plus you will have better control over your own finances.
One of the most important tools your HR team will ask for is Payroll Software. This lays the groundwork for future processes. Research shows that around 40% of payroll software buyers are SMBs who understand that having a good Payroll Management Software is essential to removing bottlenecks in employee management and can save you from issuing inaccurate payroll checks.
Who uses Payroll Management?
In Payroll Management, you will learn several things including those related to basic salary, transportation, consumption, staff and non-staff payroll lists, payroll corrections and others. There are several staff who must have skills related to Payroll Management, including:
Human Capital Staff
The human capital department has a role in recruiting prospective employees according to the criteria required by the company such as setting salaries, assigning positions or titles, promotions, transfers and dismissals of employees so that they really need an understanding of the basics of Payroll Management.
financial staff
The financial staff has the task of performing payroll and setting allowances for employees so an understanding of Payroll Management is also very necessary.
Accounting Staff
The accounting staff is tasked with recording labor costs and also carrying out the distribution process of labor costs to find out the details of the company’s balance sheet so that accounting staff also need this understanding.
