Challenges in payroll processing and how to fix them?
Payroll processing is an important business function that includes settling of net pay to workers after adjusting the appropriate taxes and other deductions. It consists of the procedures are taken to pay workers for each period and includes monitoring of working hours, deductions on employees’ compensation, and the remittance of payroll taxes. Creating a sound payroll process can help employees avoid fines for violating the labor laws. Some of the challenges faced in payroll processing are: 1. Statutory Compliances: Businesses in India have to abide by the legal structure when paying salaries to their staff. This structure consists of four components: · TDS (Tax Deducted at Source) - Employers deduct their employees’ taxes and remit them to the government. This tax is applicable when employees’ salary exceeds the basic limit. · PF (Provident Fund) - Contribution by employees and e...