A business idea needs people who can execute it. For some time, you can even run the program on your own, but finally, everyone realizes the need to involve more people to achieve business objectives. When you associate your first employee, you are responsible for making sure you receive the payment on time. When more employees join, they are presented with terms such as Payroll Management System in Pakistan, payment period, labor legislation, etc. Are you already feeling overwhelmed? Do not worry, we will take small steps and discuss how you can establish an effective Payroll Management System in Pakistan for your business, especially if it is a small company.
5 steps to set up a payroll process:
Step 1: Collect all employee information:
This information includes personal details of the employee and financial details, last details of the employment, especially if the employee has joined the middle of the fiscal year, in which case the employee must present the income and the details. Deducted from previous employment taxes for the calculation of general tax liability is deducted and deposited.
Step 2: establish the absences policy, attendance, shifts with Payroll Solutions in Pakistan:
Let’s take an example. Some organizations opt for the calendar year as the year of the license and for the payment of the year the three-month gap gives time to finalize the aspects related to the final license of the year. The same policy once approved, becomes the basis for the monthly payment and the calculation of taxes. At this stage, you can also select the infrastructure you want for your company to record the assistance of its employees with the help of Payroll Software in Pakistan.
Step 3: Choose your payroll period/cycle:
It is the period for which an employee is paid. Several countries execute the monthly, weekly, bi-weekly, daily, etc. payroll. The most used payment period is monthly. That is, from 1 to 30/31 of a month. Some companies follow the Leave Management Software in Pakistan as the calendar month and some companies follow their own specific payment cycle for their administrative convenience.
Step 4: Set up a system to run the payroll:
Executing the Payroll Management System in Pakistan means calculating the payment for each employee, after considering the leaves and attendance data, expenses and reimbursement claims, withholding tax requirements, etc. Many times small companies opt for the manual method of Excel sheets, where they establish formulas to do the calculations, but they can put them in a bad situation if the calculations are not exhaustive and precise.
Today, there is Attendance Software in Pakistan available that costs as little as 10 rupees per employee per month. Advanced payroll software, not only automates payroll but also automates the management of absences and assistance, reimbursement of expenses along with legal compliance.
Legal compliance is very critical. Make sure that the Payroll Management System in Pakistan you choose complies with the legal requirements, such as the calculation of the tax, which will be deducted from the salary and deposited with the government and other authorities.
Step 5: Respond to employee inquiries:
The main source of income for your employees is the money you pay as wages. Your employees may have inquiries such as tax validation deducted from your monthly salary; you’re the last three months of salary receipt, overtime payment, etc. Many payroll programs offer self-service functions that help the employee to log in and see their assistance, payment, and calculation of taxes, etc., also helps the payroll officer to focus on its central function.
Clearly, the payroll function is not just about calculating the net salary and releasing salary checks, but it has become an integral function. For beginners, it may seem little discouraging.
While payroll is a complex process, with advanced Payroll System in Pakistan available in the market, you can automate a large number of procedures and ensure accuracy and efficiency. See the Payroll Management System in Pakistan, smart and easy-to-use software, created especially for small and medium businesses. Not only does it help you process accurate payroll every month, but it also has integrated expense management and regulatory licensing modules, expense management, and support.
Here is the list of features which you can get by using PeopleQlik:
- PeopleQlik Core
- Core HR Software – HRMS
- Cloud Payroll Management Software
- Employee Self Services
- HR Analytics Software
- Corporate Wellness Platform
- Workforce Administration
- Leave Management Software
- Time and Attendance Management Software
- Shift & Scheduling
- Claims & Reimbursements
- Timesheet Management Software