A payroll is a company’s list of its employees, but the term is commonly used to refer to:
- The total amount of money that a company pays to its employees
- A company’s records of its employees salary and wages, bonuses and withheld taxes
- The company’s department that calculates and pays these.
Payroll in the sense of “money paid to employees” plays a major role in a company for several reasons.
From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and because they are subject to laws and regulations (e.g. in the US, payroll is subject to federal, state, and local regulations).
From a human resources viewpoint, the payroll department is critical because employees are sensitive to payroll errors and irregularities Good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct with holdings and deductions, and that the with holdings and deductions are remitted in a timely manner. This includes salary payments, tax with holdings, and deductions from Pay cheques.
Providing skilled manpower (all levels) on contractual basis, keeping them on the company’s (AFMS) payroll and providing replacement/reliever wherever required.
Taking care of their Salaries and HR related statutory compliances.
Payroll management– It covers subservices like
- Contractual employee management
- Statutory compliance management
- Recruitment process
- Muster role management
- Employee verification service (previous employee verification, education, character, address, verification service)
- Appraisal support system & management