What is Payroll System? 

 

A payroll, in its true meaning, is a list of all employees who receive money from the company. It also refers to the total amount paid by the employer to the employee. This is considered an important business process, but in reality, payroll has many subtle details that often create headaches for HR teams.

Creating a salary accounting system or payroll arises from the need to calculate salary payments to employees. This system calculates all forms of income and deductions, such as bonuses, overtime fees, and tax and social security deductions, etc.

A payroll program makes salary management efficient. It helps collect all information in one place, enabling the retrieval of historical data and adjustment of payment formats as appropriate for each type of business. It also has the ability to send money to employees’ accounts at a time specified by the bank. This means that problems with delayed or incorrect salary payments will be reduced.

The payroll system reduces the workload that the human resources department has to perform and is a good choice for SME businesses with a small number of employees. Using payroll reduces complexity and makes managing salaries more convenient.

 

 

Payroll Component

The salary payment system or Payroll consists of many elements that are important for operations to be carried out correctly and efficiently. Important components of a Payroll system include:

1. 1. Employee Information: Information about each employee such as name, address, identification number, position, salary, withholding tax, start date. and other personal information
   2. Time and Attendance: Information on when employees enter and leave work. Hours worked, leave, vacation, and other work information that can affect pay.
   3. Salary Calculation: Salary calculation depends on position, working hours, extra income, tax deductions, social security, and other factors that affect an employee’s income.
   4. Tax Deductions: Calculating and deducting income tax. and sending tax money to tax authorities
   5. Payment: The process of transferring money or paying a check based on an employee’s income.
   6. Reports and Accounting: Reports on wages, tax deductions, OT work, and related accounting information.
   7. Data updates (Updates): Data updates when there are changes to employees’ salaries, positions, or other information.
   8. Compliance with the law (Compliance): Compliance with payroll laws. Follow work laws and other related requirements

Effective Payroll Management helps businesses make payroll and comply with the law correctly. Reduce errors, and create team satisfaction

 

 

 

 Advantage of Payroll

1. 1. You can access employee information and make your salary online from anywhere.
   2. Be confident in the accuracy of employee entry and exit times.
   3. It saves HR time in managing various leaves and also reduces work in many parts as well.
   4. Employees can check their own status such as number of leave days, attendance and exit. Salary details, etc.
   5. Supports working through the Smart Phone Application system for both Android/IOS.
   6. Reduce the working time of HR staff because Professional Day takes care of every step.
   7. Software supports printing salary information and issuing paper slips.
   8. Prevent employees from knowing each other’s salary information.

 

 

ขอบคุณที่มา : Kasikornbank

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