To maintain employee’s confidence on company and improved morale of work is elemental for success and growth of business. Employees are basic part of the company and business processes largely depends on their loyalty with work and business. Employee satisfaction is regarded important therefore businesses adopt different policies and strategies for it.
Payroll System should be adopted by business which provides confidence to employees. it is basically the system through which employer give salaries to the worker. It includes employee salary information. Monthly Management System is done through some template or software available on electronic media.
Features of Payroll System Management
- Salaries: it includes information regarding wages need to be paid to employee.
- A wage is dependent on employee designation and it is calculated according to number of hours worked and also the number of days worked.
- It shows the amount of gross pay and also the net pay.
- It shows the amount deducted due to specific taxes.
- It shows whether the worker salary is calculated on hours worked basis or through simple payroll method.
- It shows the amount of deductions from salary as well as the cause whether its for insurance policy or security as per the company policy.
- It also shows the leaves and vacation taken by employee in specific month.
Benefits of Employee Payroll System
- It acts as a record keeping document both for employees and employer.
- It helps in improving work morale of the employee by providing him confidence that he will be paid.
- It makes worker more motivated towards the work as he know he is getting the salary for which he is working.
- It outlines the deductions from his salaries whether they are penalties due to more leaves than official leaves helping him in being more punctual.
- It shows the method of payment of salary. In case of automatic method of payment employees feel more secured.
- It helps in preventing any legal trouble.
- It makes calculation of salaries easy by outlining deductions.
- Salary slips can be created easily.
It helps in providing confidence to employees as they can view their salary information. It is simple to prepare and keep updated.
Creating a Payroll System
- Employee identification number must be outlined. It helps in tracking his work history as well as his behavior towards work.
- It is importance to understand the difference between worker and contractor.
- Taxes and legal liabilities are different for both.
- A contract period must be decided which should be identified in employee information.
- Mode of payment must be decided as employee’s information may be required for this like bank account number.
Microsoft Excel Template for Employee Payroll Management
It is cost effective and results in time saving therefore businesses adopt payroll templates for calculating salaries. A basic template consists of employee information like his name and date of hiring.
His designation and job is also enlisted in payroll template. It shows the leaves and vacations of employee therefore deductions and added amounts can be calculated. Net salary can be calculated on a single platform.