How Can We Tackle Payroll Challenges to Pay Employees on the Last Working Day?

We want to process salaries for employees on the last working day of every month. Currently, we are doing it on the 3rd of every month.

Challenges in Salary Processing

The challenges we have are:
1. Attendance - how to capture data.
2. We have drivers' overtime that needs to be processed.

How can we overcome these challenges? Kindly suggest.

To transition payroll processing to the last working day of the month and address the challenges faced, consider the following steps:
Attendance Data Capture:
- Implement a digital attendance tracking system that records real-time data.
- Ensure employees are trained on using the system correctly.
- Regularly audit and reconcile attendance records to address discrepancies.

Processing Drivers' Overtime:
- Develop a clear policy outlining overtime eligibility and rates for drivers.
- Implement a system to accurately track and calculate overtime hours.
- Regularly communicate with drivers to ensure accurate reporting of overtime.

By following these steps, you can streamline the payroll process and effectively manage attendance data and drivers' overtime.

Easily Notify Employees - Leverage internal communication tools such as emails or HR portals to apprise employees of the new payroll date.

Revise Payroll Settings - Modify the payroll system to display the new payday as the last working day of each month.

Synchronize Automatically With Attendance - Ensure your system is linked with attendance data to maintain accurate salary computations.

Integrate with Bank - Employ bulk salary transfer features to timely pay your employees through your associated bank.

Maintain Compliance - Continually update PF, ESI, TDS, and other legal prerequisites, even after the payday alteration.

Run Payroll with One Click - On the final working day, review and process payroll swiftly and effortlessly.

The only way you can achieve this is to change the cut-off date to the 25th of the last month and work out the salary assuming the employee will be present for the rest of the month. In the next month, you can adjust the deviations if any.

The only other way is if you have a highly automated, AI-driven system that will do all processing accurately without human intervention or supervision. I am yet to see that in practice, but it is possible.