{"id":3537,"date":"2020-09-23T18:28:40","date_gmt":"2020-09-23T12:58:40","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3537"},"modified":"2021-02-27T13:40:08","modified_gmt":"2021-02-27T08:10:08","slug":"payroll-through-the-lens-of-employer-employee-hr-finance","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/payroll-through-the-lens-of-employer-employee-hr-finance\/","title":{"rendered":"Payroll Through the Lens of Every Team in an Organisation"},"content":{"rendered":"<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Payroll is regarded as one of the most difficult processes. Each organisation differs from the other, in the way it carries out payroll. While the process is different, all organisations need to work in a highly organised system while being updated with the latest rules and regulations.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">So, what makes payroll such a tedious task?<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Payroll is the total amount of fees paid by a company to its employees, contractors, and other workers. It\u2019s an organisation\u2019s biggest disbursement, not to mention, the most time consuming human resource task. <\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Although this is a blanket statement, payroll has many more components to it.<\/span><\/p>\r\n<ul data-read-aloud-multi-block=\"true\">\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Developing organization pay policy including flexible benefits, leave encashment policy, etc<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Defining payslip components like basic, variable pay, HRA, and LTA<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The actual calculation of gross salary, statutory as well as non-statutory deductions, and arriving at the net pay<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Releasing employee salaries<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Depositing dues like\u00a0TDS, PF, ESI, and PT with appropriate authorities, and <a href=\"https:\/\/razorpay.com\/learn\/tds-returns\/\">filing returns<\/a><\/span><\/li>\r\n<\/ul>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Let\u2019s have a look at how the payroll process is perceived by the different stakeholders of an organisation.\u00a0<\/span><\/p>\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69fd128db4b8c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69fd128db4b8c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-through-the-lens-of-employer-employee-hr-finance\/#The-payroll-team\" >The payroll team\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-through-the-lens-of-employer-employee-hr-finance\/#The-finance-team\" >The finance team<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-through-the-lens-of-employer-employee-hr-finance\/#The-employer\" >The employer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-through-the-lens-of-employer-employee-hr-finance\/#The-employees\" >The employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/payroll-through-the-lens-of-employer-employee-hr-finance\/#Payroll-through-the-lens-of-RazorpayX-Payroll\" >Payroll through the lens of RazorpayX Payroll<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"The-payroll-team\"><\/span><span style=\"font-weight: 400;\">The payroll team\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The Human Resources or Payroll team interacts the most with the processes. And contrary to popular belief, there is a lot of effort that goes into it.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The payroll process can be largely divided into 3 stages.<\/span><\/p>\r\n<ol data-read-aloud-multi-block=\"true\">\r\n<li style=\"list-style-type: none;\" data-read-aloud-multi-block=\"true\">\r\n<ol data-read-aloud-multi-block=\"true\">\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><b>Pre-payroll activities:<\/b><span style=\"font-weight: 400;\"> This is the stage in which the payroll policy is defined to be in compliance with mandatory laws. The gathering of various data such as the leaves availed, expenses to be remunerated, mid-year salary revisions, etc. also happen in this stage and are then validated.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><b>Payroll calculation:<\/b><span style=\"font-weight: 400;\"> This is where the actual payroll calculation happens. It is the most important and time-consuming stage in the entire process.<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><b>Post payroll process: <span style=\"font-weight: 400;\">This is the final stage in the payroll process where the <a href=\"https:\/\/razorpay.com\/blog\/payroll-compliance-pf-esi-pt-tds-opfin\/\">statutory compliance policies<\/a> which hold all the mandatory deductions are defined and calculated. <br \/>Next, the final payout is made to the employees\u2019 accounts. And lastly, a report is generated which holds all the information with regards to the cost to the company incurred in this payout cycle.<\/span><\/b><\/li>\r\n<\/ol>\r\n<\/li>\r\n<\/ol>\r\n<p data-speechify-sentence=\"\"><b><span style=\"font-weight: 400;\">Although these are the major processes which involve the HR department, there are other duties that the HR team has to follow. <\/span><\/b><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Defining a salary structure that complies with tax laws, defining <a href=\"https:\/\/razorpay.com\/payroll\/hr-software\/\">settlement terms, managing employee data, settling compensation and benefits<\/a> are some of the other responsibilities.\u00a0<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"The-finance-team\"><\/span><span style=\"font-weight: 400;\">The finance team<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The finance team has extensive involvement in payroll execution and reconciliation. They are responsible for deducting the stipulated tax at source, as well as ensuring that all the payments are reconciled and the records tally.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">However, reconciliation is no mean feat given the sheer volume of transactions that the finance team has to deal with. This exercise requires a lot of time and effort on a monthly basis.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The process involves accounting functions and knowledge about reconciliations, posting to the general ledger, etc., which are the core responsibilities of the finance team.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Finance teams are also more aware of tax laws and implications. They are also involved in making periodic audits to payroll financial data.\u00a0<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"The-employer\"><\/span><span style=\"font-weight: 400;\">The employer<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The employer of an organisation does not have much to do with the payroll process itself if they have a payroll team.\u00a0<\/span> <span style=\"font-weight: 400;\">The employer has to pay their<\/span><span style=\"font-weight: 400;\"> share <\/span><span style=\"font-weight: 400;\">of the payroll taxes, a part of which also goes into the Provident Fund of the employees above their gross pay. <\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">They are also responsible for depositing the deducted taxes from the employees\u2019 paychecks into the respective governing bodies.<\/span> <span style=\"font-weight: 400;\">Next, they are involved in preparing reconciliation reports which ensure that all the numbers are accounted for and are in compliance with the predefined policies.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">There is also some amount of involvement in the financial accounting of expenses. This helps in various other operations such as budgeting.<\/span> <span style=\"font-weight: 400;\">Just like an employee, the employer has to file for tax returns as well. These returns can help benefit the company and aid in expenditure and growth.\u00a0<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"The-employees\"><\/span><span style=\"font-weight: 400;\">The employees<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">An employee usually does not have to do much about payroll or its various components, as long as the deductions are accounted for and the expected salary gets released.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">An employee interacts with payroll to file Income Tax declarations and returns, submit investment proofs, account for the facilities availed, and to claim expenses.\u00a0<\/span> <span style=\"font-weight: 400;\">Now, these can be quite confusing considering the various forms and processes involved and it usually all lands on the team handling payroll to make things as smooth as possible.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Traditionally, these processes are handled manually and this can lead to some complications as human error becomes a contributing factor. Also, since it deals with an employee&#8217;s earnings, a wrong estimate can cause unrest within the workforce. <\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Apart from these difficulties, these processes also can be delayed at times while going back and forth with the necessary documentation.<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><span class=\"ez-toc-section\" id=\"Payroll-through-the-lens-of-RazorpayX-Payroll\"><\/span><span style=\"font-weight: 400;\">Payroll through the lens of RazorpayX Payroll<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">While the responsibilities of each stakeholder seem straightforward, they are quite the contrary.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Payroll processing is long, tedious, and very time consuming. When manually calculated, there is a greater margin for human error while working with numbers.\u00a0<\/span> <span style=\"font-weight: 400;\">While the tax laws are already complicated, the payroll team has to ensure that they are compliant with the changing compliance policies.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/payroll\/\">RazorpayX Payroll<\/a>, an automated payroll software, streamlines the whole process while automating salary as well as compliance payments. Here\u2019s how.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><b>The payroll team<\/b><span style=\"font-weight: 400;\"> &#8211; RazorpayX Payroll empowers the payroll team by allowing them to update employee data quickly and efficiently. It also allows employees to access their information instantly through the RazorpayX Payroll dashboard.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">It serves the dual purpose of reducing the dependence of the employees on the payroll and finance teams for inquiries and cutting down on the time required for onboarding new employees.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><b>The finance team<\/b><span style=\"font-weight: 400;\"> &#8211; RazorpayX Payroll eases the reconciliation and tax deduction woes of the finance team by requiring only one transaction. The finance team is required to load the requisite amount in the RazorpayX Payroll account, from which the disbursals are made when the software executes payroll.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><b>The employer<\/b><span style=\"font-weight: 400;\"> &#8211; A common concern among founders of small businesses is that they would have to learn about a new, complex system. RazorpayX Payroll, with its intuitive dashboard and user-friendly interface, streamlines the entire payroll process and makes it easy to work with.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><b>The employee<\/b><span style=\"font-weight: 400;\"> &#8211; The lack of transparency and easy access to payroll information is also a major pain point for employees. RazorpayX Payroll empowers employees to update their documentation and access their payslips in a matter of a few clicks. This greatly reduces the dependency on the payroll team.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Every organisation must be easily able to carry out its processes without having to spend too much time on payroll and compliance.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">No more spreadsheets or outdated payroll methods. Just a one-click payroll solution that handles salaries and compliance. Automating payroll has never been this easy!<\/span><\/p>\r\n\r\n<div style=\"text-align: center;\" data-speechify-sentence=\"\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/payroll\/?r=lens\" target=\"_blank\" rel=\"noopener noreferrer\">Get started with RazorpayX Payroll<\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Payroll processing is difficult for most businesses. In this article, we&#8217;re looking at payroll through the lens of various stakeholders in an organisation. <\/p>\n","protected":false},"author":151156458,"featured_media":3539,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3404],"tags":[],"class_list":{"0":"post-3537","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156458"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=3537"}],"version-history":[{"count":8,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3537\/revisions"}],"predecessor-version":[{"id":4228,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3537\/revisions\/4228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/3539"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=3537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=3537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=3537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}