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How is payroll a HR functions..!!!

Dear friends,

Payroll in India was once upon a time (before 10 - 15 years) considered to be part of
Accounts Department. Those are the days when payroll was seen as a mere compliance
function and also as finance/accounting function as money was involved. Performance
appraisal was more a ritual done once in a year and performance was not adequately
related to pay. Moreover, Accounts personnel were the only people considered to be fit
for doing statutory compliance related jobs such as PF and ESI jobs in an organization.

In countries like US, even before 15 years Payroll was treated as part of the
Compensation & Benefits Management, which is basically HR function. Payroll, as you
can see, is only an event, which is happening at a frequency as may be stipulated by the
country/company rules, and is guided by the policy on Compensation & Benefits
Management program of any company. Other countries gradually adopted the concept.

Payroll is also a sensitive matter as employees may have queries when they receive their
pay slips. Not to generalize, Accounts personnel are not very much the right persons to
have the kind of human relations skills to answer such queries with empathy and
patience. So, Payroll also became a matter of human relations over years when
employees mattered.

Another reason is the salaries have become more and more linked with employee
performance and retention with a substantial part of salary paid as performance-linked
incentive. Performance Management being the HR function, payroll management in a
performance-oriented reward system has become HR function.

Accounts department mainly performs a control function and is therefore made as

bottleneck. A bottleneck approach is not the right approach when you need to reward
people's performance in a dynamic business environment. So, the payroll function has
been transferred to HR to make it stay nearer to the people of the organization so as to
respond quickly to the employees' queries and performance. Of course, Accounts will
ultimately monitor the expenses and give their advice regarding any lapse in controls
through audit and other tools.

If HR is not handling payroll with a difference and with what purpose it should handle
this function, then it does not matter if Accounts handles it or HR handles it.

I think I have answered you to the extent I can. There could be different views/reasons to
be put forth by other members.

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Features
 Flexible salary definition with formula/slab etc.,
 Integration with Attendance Monitoring Systems
 Data Importing & Interface with Excel for Import & Export of Various data
 Customization facility of Reports & Salary Heads to suit the needs
 Capable of handling of ESI, PF & PT processing / Reporting
 Flexible definition of working days / holidays depending on leave groups
 Complete leave management
 HR details Management
 TDS Computation, eTDS Generation & Printing of TDS certificates and Returns
 Exporting Salary details to Accounting Software
 Network Compatible Client Server Architecture with optional backend, available with
Oracle/MS SQL/My SQL/MS Access
 Wide list of printable Reports

Reports Generated
Monthly Reports

 Salary Sheet
 Pay Slip
 Bank Statement
 Attendance Details
 Salary Abstract
 Overtime Report
 Additional payments / Deduction Report
 Hold Salary Report
 Variance Statement

Statutory Reports

 PF Report
 ESI Report
 PT Report
 Bonus Report
 Gratuity Report
 TDS Report

Additional Reports

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 Leave
 Salary Certificate
 Open Salary Certificate
 Advance
 Arrears

Employee Related Reports

 Employee Details
 Contact Details
 Date Related Report
 HR Details Report etc.

Advantages
 Database Choice
 Locking Month
 Holding Salary
 HR Function
 Month Creation
 Leave Management
 Payroll Calendar
 Sample File
 And many more….

Allowances
 Attendance Setting
 Attendance – Daily and Hourly
 Allotment – Between Dates, Calendar Year and Financial Year
 Percentage wise PF and ESI applicability to Salary Heads in Assign heads to Salary
Structure.
 Employee Classification changes in between month. (i.e., user can change classification detail
at 1st of every month only)
 Rotating Weekly Holiday Setting
 Automatic Leave Allotment Configuration
 Periodic Incentive (in Standing Instructions)
 Gratuity
 LTA
 Medical Reimbursement
 Food Coupons
 Reimbursement
 Flexi Pay
 Hold/Release Salary

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 Arrears (Similar feature called Salary Adjustment will be given)

 Full and Final Settlement
 Whole Year Summary
 Journal Voucher
 Favorite Configuration
 Payroll Calendar
 Denomination
 Query Builder
 Edit Templates

ACCOUNT CREATIONS
o Multiple Company creation
o Unlimited employee creation

Premium Features
Statutory Details

 Provident Fund
 Employee State Insurance
 Effective Month based PF/ESI Rates Definition
 Profession Tax
 Effective Month based PT Rates Definition for multiple states
 Tax Deduction at Source

Company Details

 Address capturing
 Enabling PF with options for PF Voluntary and multiple PF group
 Enabling ESI with options for Individually calculating employer ESI

Limiting ESI Gross and Multiple ESI Group

 Enabling PT and defining PT Groups

 Enable Bonus/Ex-Gratia
 Enable TDS
 Enable Supplementary Salary
 Enable Gratuity
 Simple Document Management
Reminder
Configurable Options

 Maintain user defined employee identifier

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 Maintain HR Details
 Configurable captions for Employee ID, Reference Number and Salary Structure
 Five types of Net Salary rounding off with option to carry over rounded-off value
to next month salary
 Standing Instructions - Advance, Loan, Insurance, Group Insurance, SSS,
Periodic Incentive
 Maintain LTA
 Maintain Medical Reimbursement
 Maintain Arrears given
 Secure salary processed months
 Maintain Held salaries
 Maintain Salary Transfers directly to Employee Account (Adv. Bank)
 Process salary in Middle of the Month
 Process salary with hidden parameters
 User definable multiplier and divisor for salary heads defined
 Flexi Pay
 Manage Food coupons
 Maintain Theoretical Salary along with Actual Salaries
 Consider excess leaves as Loss Of Pay
 Allot leaves after certain number of days
 Generate PF Forms 10 and 5 with previous month data
 Display PF Voluntary and Employer contribution separately in Monthly PF report
 Restrict PF Employer contribution for each employee
Branch Creation
 With PF
 With ESI
 With PT
Multiple Attendance Management settings
 Leave Register
 Attendance Daily
 Attendance Hourly
 Attendance Monthly
 Allotment - Between Dates
 Allotment - Monthly

 Unlimited number of Salary Structure Definition

 Provision for creating 30 Earning and Deduction heads each.
 Defining different setting for same salary head across multiple Salary Structures
 Period dependent Salary Head definition
Salary Heads can be defined as
 Formula

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 Slab
 Lump sum
 Company Lump sum
 Group Lump sum
 Every Month
 Percentage based options for defining what amount of salary head is applicable for
PF and ESI calculation.
 Each salary head can be defined to contribute towards PT
 Setting required TDS references for each salary head for automatic Tax computation.
 Detailed employee information capturing with period based classification of data
pertaining to department, designation, occupation, division, grade, branch, attendance
head, bank account number and salary structure
 Date wise change
 Employee level applicability for PF, ESI, PT and TDS
 PF
 ESI
 PT
 TDS
 Setting PF/PT applicability/non applicability from
 Set Date
 Maintain other employee details like, qualification, blood group, images, references,
languages, training programs, special dates, family details, memos, disciplinary
actions taken etc.
 Maintain financial institution/bank details for standing instructions and salary
remittance.
 Attendance Management
 Create unlimited number of leaves / on duty items
 Maintain Holiday list with a master list and attendance head based list
 Fixed Frequency
 Rotating Policy
 Configure allotments for automatically set the leave to be allotted to employee
 Maintain encashment of leaves either as separate payment or payment through
salaries
 Set user defined dates for applying special OT
 Standing Instruction
 Advance/Loan, manage individual or bulk entries. Options to readjust
manually/automatically. Maintain voluntary employee contributions towards
advance/loan taken
 Insurance. Manage premium payments on insurance policies taken by employee
 Group Insurance. Manage premium payments done for group policy taken on a
group of employees
 SSS. Maintain Salary Saving Scheme data

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 Periodic Incentive
 TDS Data linking for Standing Instructions
 Bonus/Ex-Gratia. Define infinite number based on user defined formula. TDS
applicability if required can also be made. PT deducted on bonus/ex-Gratia given can
also be defined
 Provision to treat bonus/ex-Gratia given as a separate payment or through salaries
 Gratuity payments based on theoretical / earned salaries. Provision to consider
taxable amount for tax computation
 LTA based on followed practices
 Medical Reimbursement based on followed practices
 Food Coupon management
 Reimbursement
 Manage theoretical salaries and also define salary rates (Salary Rate)
 Automated Salary Calculation (Salary Editor)
 OT Rate
 TDS
 Advance Bank Detail
 Release Salary
 Calculation Field
 EMI Details Editing
 Create unlimited number of additional payments/deductions done each month
 Provision given to apply the additional deductions made to required tax deduction
references for automatic tax computation
 Arrears
 Salary Adjustment
 Full and Final settlement
 Import / Export options for employee details, attendance details and salaries
 Employee Master
 HR Details
 Leave Register
 Attendance Daily
 Attendance Hourly
 Attendance Monthly
 Salary Rate
 Salary Details

 TDS Management
 Bulk employee delete
 Process immediate previous month salary
 Journal voucher based on company, salary structure, department or branches defined
 Expression Editor
 Advanced Filter

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 Favourite Configuration
 Payroll Calendar
 Interest Calculation
 Denomination
 Query Builder
 Edit Templates
 Security at product and data file level
 Group based data access for users.
 Backup and restore - single file
 Backup and restore - multiple file
 Open Component 55. Multiple Company
 MS Access
 MS SQL
 MYSQL