Payroll process involves arriving at what is due to the employees also called as ‘net pay’ after adjusting necessary t axes and other deductions which includes:
Developing organization pay policy including flexible benefits, leave encashment policy, etc.Easy Tax Filing and Reports
Under the Income Tax Act, every salaried individual is liable to pay taxes as prescribed by the State and Central governments depending on the salary and exemption limit. It takes care of all the compliance and statutory requirements which benefit the company in filing the taxes easily.
Economical And Time-Saving
Usually, payroll software are designed to integrate with the existing accounting system, and hence organisations can save time and money on calculating large amounts of data.
Determine Compensation
As every individual’s compensation, including salary, incentives, bonuses are built into the payroll system, it becomes simpler for companies to evaluate the employee’s performance during their time of appraisal cycle.
Maintain Reputation
In addition to fulfilling its financial obligations, a company must also ensure to maintain adherence to all the country's tax obligations and labour compliances like TDS, ITR, ESI, PF, etc. This enhances an organization’s reputation as a stable employer and also helps in increasing the brand proposition.