Once you have hired your 1st employee, you need to start paying the employee a Salary or start their payroll. In this episode of eLagaan Whiteboard Friday, the eLagaan team explains what does it take to run a successful payroll management system in India. It is very crucial to have a smooth payroll system.
Running a payroll goes beyond just writing paychecks to the employees, it involves:
1. Leave management
2. Tax declarations & calculations (including deductions like 80C, medical, HRA etc)
3. Filing of various returns related to payroll
4. Managing various payroll changes: Change in benefits, promotions, change in role or grade, salary adjustments, Bonus, Commission
5. Salary advances or loans management
6. Employees expense managements (bill)
7. Providing payslips
8. Providing the year end Form-16
9. Running payroll reports
10. Communicating to the bank to release payments.
Having the right partner to implement the correct payroll management system is crucial for running day to day business & happy employee. So choose wisely.