Payroll is advised to be viewed in respect of an employer and NOT individual employee. It is the disbursement of Company funds to it's employees and the management, withholding taxes, PF, retirement plans...In other words, it is total earnings earned in a year by all workers employed by an employer engaged in an industry.
Managing a firm's payroll can become quite complicated due to the diverse types of employees a company may employ; full-time, part-time, salaried exempt, salaried non-exempt, contractor, etc and due to global locations. Thus the evolution of ERP systems like SAP, Peoplesoft where the payroll is generated as per the schedule pay cycle and funds are transferred automatically to the debit accounts(/pay checks) of employees.
Payroll Management
Payroll Management is the linchpin to most of the information an organisation has regarding its employees. While many organisations espouse to using Human Resource Information Systems (HRIS), the reality is somewhat different. Current technology and software packages allow employers to store a vast array of inter-related information about employees. However, much of this information is not viewed as critical, and therefore often overlooked. Basic employee information must however be kept for payroll purposes. This will also form the basis for any other HR related information. Information recorded will include:
* Name,
* Address,
* Date of birth,
* Country of birth,
* Marital status,
* Salary level,
* Taxation status
* Positions held,
* Leave history, and
* Service history.
Much of this is gathered when an employee is first registered on the payroll, but why is this important? Human resources can utilise this information to produce workforce profiles such as age, salary distribution, geographic location, and service length. All of these allow for greater HR planning. It is therefore imperative that payroll and HR have a clear line of communication.
This however is just the tip of the iceberg. Other reasons for ensuring clear communication between HR and payroll are:
• HR relies on payroll for historic information for reporting purposes, annual reports etc.
• Any plans to change award or enterprise agreement conditions must include input from the payroll area.
Some payroll systems may not be capable of managing initiatives such as salary sacrificing, share schemes, or international employment. Any changes to conditions can result in higher payroll costs due to inefficient ‘work-arounds’ or an increased need for payroll resources.
Some Web Sites for help:
http://en.wikipedia.org/wiki/Payroll
http://www.cipd.co.uk/default.cipd
Also refer to book
Compensation Management in a Knowledge Based World or Organisation
By Richard Hendersen ( very interesting and useful book)
Managing a firm's payroll can become quite complicated due to the diverse types of employees a company may employ; full-time, part-time, salaried exempt, salaried non-exempt, contractor, etc and due to global locations. Thus the evolution of ERP systems like SAP, Peoplesoft where the payroll is generated as per the schedule pay cycle and funds are transferred automatically to the debit accounts(/pay checks) of employees.
Payroll Management
Payroll Management is the linchpin to most of the information an organisation has regarding its employees. While many organisations espouse to using Human Resource Information Systems (HRIS), the reality is somewhat different. Current technology and software packages allow employers to store a vast array of inter-related information about employees. However, much of this information is not viewed as critical, and therefore often overlooked. Basic employee information must however be kept for payroll purposes. This will also form the basis for any other HR related information. Information recorded will include:
* Name,
* Address,
* Date of birth,
* Country of birth,
* Marital status,
* Salary level,
* Taxation status
* Positions held,
* Leave history, and
* Service history.
Much of this is gathered when an employee is first registered on the payroll, but why is this important? Human resources can utilise this information to produce workforce profiles such as age, salary distribution, geographic location, and service length. All of these allow for greater HR planning. It is therefore imperative that payroll and HR have a clear line of communication.
This however is just the tip of the iceberg. Other reasons for ensuring clear communication between HR and payroll are:
• HR relies on payroll for historic information for reporting purposes, annual reports etc.
• Any plans to change award or enterprise agreement conditions must include input from the payroll area.
Some payroll systems may not be capable of managing initiatives such as salary sacrificing, share schemes, or international employment. Any changes to conditions can result in higher payroll costs due to inefficient ‘work-arounds’ or an increased need for payroll resources.
Some Web Sites for help:
http://en.wikipedia.org/wiki/Payroll
http://www.cipd.co.uk/default.cipd
Also refer to book
Compensation Management in a Knowledge Based World or Organisation
By Richard Hendersen ( very interesting and useful book)