A business idea is nothing without people. No matter how great your idea is, without people who truly believe in your idea, and are ready to work and make it something big, it is nothing. As the owner, you cannot imagine running the company alone for long. There will certainly come a point soon when you will realise that you need to hire at least a few resources to manage work in a better way. Now, when the employees will be hired, you will also be required to set your payroll process in place. Infact, as soon as you will roll the appointment letter and the very first employee will join, you would become responsible. Payroll, TDS, employment laws, pay period, etc, all these terms will become quite common for you.

So, read this blog, as we unravel the quickest way to set the payroll process for your business. Let us begin.

Assemble all employee information

For setting payroll related information, you would be required to collect the personal information of the employee like the PAN card details, last employment details, PF number etc. For calculating overall tax liability, the details of previous employment are also needed.

Define the policy for attendance

The policy to bring everything in order is necessary. While making the attendance policies, you need to be sure you are not overlooking any rule for attendance set by the government. For instance, you cannot ask the employee to work for more than 9 hours in a day, if you do you will have to pay overtime. Moreover, you cannot make Sunday a working day. Other than this, you have to decide the leaves, if you want the timings to be flexible, if you want to allow work from home, etc. Defining attendance is important as the calculation for paid days will be done by the payroll software on the basis of that only.

Choosing your payroll cycle

Selecting the payroll cycle is also very important, even when you are not using payroll software. So, decide if you will pay the employees bi-weekly, monthly or weekly. Usually, companies in India pay their employees monthly so that the admin doesn’t feel burdened.

Choose payroll software

You may feel that you can manage the payroll work without payroll software, but you cannot. Even if you will start using the excel sheet, it will consume a lot of time. Infact, you will commit errors as well. So, payroll software investment is a must, it never goes vain.

Answer employee queries

Employees will have some concerns every now and then. The more the employees, the more are the concerns as well. So, if the employee would need some validation of the tax deductions done or the deduction in the salary, you should answer.

So, now that you know how the payroll process can be set, you can easily extend the job offer using the offer letter template. Hopefully, the steps we have shared with you will help you in setting your payroll process faster than you planned it to be.