How Do You Ensure Timely Payroll on the Last Working Day of the Month?

Dear Team, What should be the ideal answer for the interview question: "How and when will you initiate the payroll process if the company's salary pay date is the last working day of every month? How will you ensure that employees get their salary on time and without any hassle or mistakes?" Waiting for a quick response. Regards, Swati Manager HR

Hi, Please refer to the following link related to questions asked by you or other members: https://www.citehr.com/642777-payroll-processing.html

You should reply, "I will implement an early salary cut-off date so that salary processing will be completed before the end of the month, and salaries can be credited on time."

Hello. Usually, salary days are from the 1st to the 30th/31st of every month. To process payroll, working day attendances must be ready by the 30th or 31st for each employee.

If attendances are recorded manually in a notebook, you need to update them in an Excel sheet day-wise or week-wise, ensuring that you have 30 days' working day attendances ready by the 31st of the month. On the last day, you can update only the 31st attendance and calculate the total working days in Excel.

In this manner, you can process payroll smoothly on the last day. You need to arrange to receive attendance data daily from respective departments, hold pays at the end of the month, and incorporate corrections suggested by each department head.

This process also depends on the number of staff. If it's more than 500 or 1000, manual attendances are difficult. You should follow the same process, except prepare attendance working days using biometric systems in payroll software.

It can be done.

The second choice is that despite the working days taken for salary processing being from the 1st to the 30th or 31st, you can consider taking attendance from the 26th of the previous month to the 25th of the current month. However, you may encounter issues like PF and ESIC calculations. The better option is the first choice.

I hope it's clear.

All the best. Thank you.

Hi,
If the number of employees is on the higher side, the salary closing date cannot be the last day of the month. The reason is that the Payroll team would take time to process, and they need to wait until the 31st (or 30th) of every month to close the attendance. To avoid delays, big corporations follow the process of closing the salary date around the 20th of every month. This way, the salary cycle would be from the 21st to the 20th of the next month. Any leave/lop taken after the 20th would reflect in the next month's cycle. However, salary processing would be for the full month only.