Human Capital Management
Payroll management or Compensation and Benefits Management
One of the integral parts of HCM is Payroll. Timely and accurate salary calculation coupled with Statutory Compliance is the advantage of automating payroll process. The task of payroll becomes complicated in today's industries due to multiple statutory requirements, MIS requirements, calculations based on slabs and formulas and other HR policies.
The proposed Payroll Software will make this complicated function look much easier. The payroll software is user-friendly, with user-definable preferences like Salary Heads and Salary structures, Leave Register, flexible reporting and many more.
- Fully automated and end to end Online Payroll Application that lets you create unlimited salary heads and deductions.
- Seamless Integrations* with in-house financial apps to post journals and to transfer salaries to employees Bank account directly. So why shift between multiple apps when your systems can do the talking?
*To enable integration the other software or devices should support application programming interface (API).
i) Payroll Definition
Payroll module provides the end user the flexibility to create company specific salary structures. Can define Salary Components (Allowances/Deductions) like Basic Pay, HRA, Travelling Allowances, PF, ESI etc. and specify them as Absolute, Computed or Conditional Amounts. Computed Amounts can be formula based, like PF being 12% of earnings - eg:-.12 %(Basic pay + HRA + DA + )).
- Can specify sequence in which individual components should appear in pay slips.
- Defaults (Salary Processing Day, No. of days for LOP)
- Ad hoc Deductions / Earnings
- Excel download and upload – Employee list can be download to excel. User can fill-in Incentives / Donations / Contributions in excel and upload as payroll element of salary.
- Bindings between salary elements. Derived elements on formula with maximum and minimum value.
- Fully flexible rounding options – no round, round, ceil and floor.
ii) Pay Revisions
Employees Pay revision is sensitive and confidential by nature. Salary structure defined in Payroll-definition will be assigned to all employees by default and HR has the flexibility to disable salary elements that are not applicable for an employee, say for eg ESI may not be applicable for high paid employees. Upon providing Basic Pay, system auto calculates dependent salary elements based on formulas attached with it. HR fills-in rest of the elements.
- Pay revision history of employees.
- Alerts pay revision due in advance by 1 month.
iii) Payroll Process
iHCM offers fast and easy step by step process for payroll processing. System calculates earnings and deductions with reference to the salary structures and salary formulas. Steps include salary processing by HR department, verification and approval by Finance department and finally the paychecks disburse. Any change made on processed salary will be logged for Audit trail.
Workflow provides multiple levels of authority and responsibility for payroll processing such as Payroll calculations and Bank upload, with full security.
- Process - Running Payroll Process
- Verify and Approve
- Disburse – Salary Disburse and Standing Instructions
- Direct credit to employee Account
Payroll process can be done ahead of due date. Verifications and workflow process are enforced so that it can be send to verification and approval only after completing attendance register, leave register, Pay-cut for Latecomers or Early Leavers, compensatory offs, on-duties etc. It devises a payroll-processing schedule that allows ample time to process the payroll and to correct detected errors before employees receive their paychecks. For example, perform payroll processing two or three days before the actual pay date. Make changes to the employee payroll record, if applicable. This includes: address changes; payroll deduction/allowance changes, voluntary deduction changes, incentives, variable allowances etc.You can mark to hold salary of an employee.
Designated approver (usually from finance department) has to vouch the correctness of Salary sheet to proceed next step. Summary of verified payroll processed data with an optional drill down view to an employee level. He can send it back to HR for correction, if any, and once approved will be pushed for disbursing it.
The disburse process does the Accounting posts - Debits the Salary Head and credits all allowance and deductions. The postings will be made to the respective heads employee wise.
On approval of concerned finance person, funds would transfer from company account to employee accounts.
iv) Variable Pay
Variable pay elements of Employees for a month are either fed manually or calculated on slab against the aggregate earnings over a period of time.
iHCM supports excel upload for pay elements. The template for upload file along with employees, Pay element and applicable month can be downloaded from the system directly. Once the amount column is filled in, the file can be uploaded straight away. System will automatically process the variable pay based on the uploaded file. Also there is an option to manually enter the variable pay details.
Voucher with TDS deduction can be applied in batch.
Performance incentive can be processed separately.
System deducts TDS from incentive and calculates net amount. Alternatively iHCM supports excel upload. Excel template for the upload can be downloaded from the system.
vii) Hold Settlement
The salary process module has an option to hold salary of employees. Such undisbursed salaries can be released later during hold settlement.
viii) Reports and Analytics
- Salary Sheet
- Pay Slip
- Bank Payout Statement
- Direct credit to employee Account
- On-Hold Salary Report
- Voucher printing
- Salary Certificate
- Bank Transfer Sheet
- Salary Summary
- Salary Signature Sheet
- Pay Revision
- Return of Contributions
- Register of Employees
- Joiners list and details
- Employee By Age
- CTC on paid
- CTC on pay revision
- Employees' State Insurance Summary
- Provident Fund Form - 5
- Form 10
- Form 11
- Form 29
- PF Form 3A
- PF Form 6A
- Form 12
It consists of Information related to Salary calculation of all employee, like number of days worked, Earnings, Deductions, Net salary. It will show the summary result of the specified month.>
It is similar to salary sheet except for the fact that, this report can be treated as the acknowledgment for receiving the salary of a specified month.
This statement will be sent by the employer to the specified bank’s authorized person. This statement will be having the details of A/c No. and Net salary amounts to be credited to the respective employees accounts maintained in that bank. Employer will be making payment through single cheque for the group of employees whose accounts are there in the same bank.
This will give the salary details of the employee, which is being held for some specific reason. It will give the information about the total net salary amount held for the month and total man working days for whom the salary is being held.
This will prepare the voucher for the earnings mentioned. Voucher can be raised in bulk or for an individual.
This can be presented as the basic proof for assessing the employee’s financial status. This will include the monthly salary detail of an employee with the certification from authorized person.