- January 10, 2018
- Posted by: admin
- Category: Company Incorporation
HR teams across organizations may be buzzing with activity, but any guess, how much of the work they are putting in is towards core employee engagement. If you dig in a bit deeper, you will realize that most part of the work could be unproductive and manual data entry oriented.
A US based survey conducted recently indicated that HR specialists have to spend nearly half their time (41 percent) in a typical workweek on tasks including administration (29 percent) and re-entering data from one system to another (12 percent). The remainder of their time is spent productively, by providing HR service and responding to employee needs.
What are the issues that really keeps HR busy?
Managing Employee tax declarations
It is that time of the year, when organizations need to take declarations from employees about the investments they will be making through the FY to save tax. This is across the several eligible sections available under Income Tax Act. In many instances, this declaration process can be manual (form based) and tends to be manually updated in the system at the back end. Several times, this process can also be iterative, as employees do not know all the details upfront. If the process is manual, these backend updates can become error prone and can also lead to payroll errors. Frequent updates to the declaration also create several challenges.
Employee Loans and advances
As a policy, company may provide loans and advances to eligible employees under special schemes. It is necessary to closely track these advances, disbursal dates and interest calculations related to them. Most of the loan recovery happens through salary deductions, so tracking these also come under payroll.
In several organizations, re-imbursements are paid along with salary. However unlike salaries, which follow a defined pattern through the year, reimbursements need to be approved and need to move through a workflow before being paid out. It is important to map to the process and ensure that all the necessary approvals are in place before payments are being made out. There are salary related reimbursements like Medical, LTA etc. and non-salary related reimbursements like travel etc.
Employee attendance data
While calculating payroll, it is necessary to factor employee attendance data. Attendance data could be maintained in various forms, including manual registers, or electronic systems like RFID cards, biometric scanners. The data from these systems needs to be factored while processing payroll. HR also keeps employee masters, which have details of the leaves an employee is eligible for and the number of leaves he has availed so far.
Managing payroll compliances
It is company’s responsibility to deduct taxes, while processing payroll. Depending on company size, it may also need to deal with ESIC, PF and other such deductions. Managing all of these deductions can get quite cumbersome.
Companies that are able to automate several tasks in the payroll function are able to free up time for their HR executives to focus on core employee engagement issues.
Finsmart works with several leading organizations,
Providing accurate payroll solutions, on-time.
Leveraging powerful technology and years of experience to manage all your payroll, taxation and statutory compliances.
Managing all employee queries related to payroll and free up HR time for core activities.
If you also want to drive efficiency in your payroll, feel free to reach me and I can schedule a one-on-one session with one of our payroll experts.
Your feedback and suggestions are welcome
Abhishek Shrivastava (Finsmart Solution)