Statutory Compliances In Indian Payroll Management System

What Is Statutory Compliance?

Statutory compliance, in HR, refers to the legal outline within which organizations should run, in the treatment of their employees.

Each country has various hundreds of central as well as state labor laws that companies require to align with. This list is forever being added to.

A lot of your company’s effort and bucks goes into making sure compliance to these laws that can deal with a series of issues; from the payment of fewer wages to maternity advantages or professional taxes.

Thus, dealing with statutory compliance needs for companies to be well-versed with the several labor rules and regulations in their country of operation.

What Is The Need For Statutory Compliance?

Adhering to the statutory compliances is essential for all petite and large companies in the world to keep their businesses secure from the legal difficulty. A profound knowledge of statutory compliances is needed to lessen the risk linked with the noncompliance of statutory needs.

In today’s competitive as well as legal business realm, it is very demanding for employers to handle statutory compliances without a support of good payroll management system. Every country has many types of compliance needs. This blog/article discusses the statutory needs for Indian payroll system.

There are a number of statutory needs for Indian companies and companies have to invest an important amount of time in their payroll management to make sure that they are perfectly compliant with the legal rules & regulations. If companies do not succeed to adhere to the statutory compliances, they might have to pay more penalties, which are several times more than complying with legal guidelines.

The Statutory Compliances Required For Indian Payroll

Several common statutory requirements, which companies have to chase for their payroll management in India are:

Statutory Requirements For Minimum Wages

This act offers for fixing minimal prices of wages for skilled as well as unskilled laborers. It not only guarantees bucks for bare minimal survival needs of workers but also takes care of education, medical needs, and few level of comfort of workers.

The Minimum Wages Act being a state subject, the statutory compliance of a federalized payroll management is to serve for the payment of minimum wages to an organization’s workers spread out all across numerous states. Megasoft payroll has the provision to map this difficult need.

Along with this, payment of ‘Overtime’ wages to workers is a statutory need as per the Factory Act & Payment of Wages Act. It affects industries like manufacturing & construction.

TDS Deduction

Every single employer who is giving salary to employees has to subtract TDS under section 192 of the Income-tax Act, 1961, if the salary is over higher amount exempt from tax. The employers also need to make Form 24Q and Form 16 in time. Few of the salary components that affect TDS deduction are Medical Allowance, Special Allowance, HRA, Children Education Allowance, Leave Travel Allowance, and Investments.

Statutory Compliances For ESI Fund And PF Deduction

ESI fund, maintained by ESIC is applicable to employees earning Rs 15,000 or less per month to provide the cash and medical benefits to them and their families.

PF is a compulsory contributory fund for the future of employees after their retirement or for their dependents in case of their early death.

Professional Taxes

Professional tax or employment tax is a state-based tax. It is one of the statutory deductions from the gross income before computing the tax.

Gratuity

Gratuity is the amount given to employees by an employer when they leave the job after completing five years in service. Gratuity is calculated as Basic + DA divided by 26 * No of years of service *15.

EDLI

The EDLI (Employees’ Deposit Linked Insurance Scheme) provides assurance benefit (death insurance cover) to employees along with PF benefit. The employees do not contribute anything towards EDLI. The employers contribute 0.5% of the total wages of employees subject to a maximum of Rs 6500/-. EDLI applies to all the organizations where EPF Scheme applies.

The Megasoft payroll system takes care of all the above-given compliance requirements and statutory deductions required in India. It allows you to manage your PF and ESI preferences, manage professional tax, select the salary heads applicable to you, manage TDS through investment declarations and automatically calculate salaries after TDS deduction while processing payroll. In addition, it allows you to capture Challans and generate form 16 and form 24Q to manage all your statutory compliances with ease and efficiency.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

Megasoft HRMS Provider – Unified Hire-to-Retire HR System

Any organization or company is partial without an HR division, regardless of whether it is petite or large. To enhance the competence as well as productivity of this division, several companies today have started to spend in HRMS system. Before discussing ahead this system, it is essential for one to perfectly comprehend the significance of HR division in a company.

This division plays an important role in the company, taking care of many concerns like those stated below : -

• Planning & conducting interviews and employing people for several designations
• Taking timely measures for employee welfare as well as growth of the organization
• Promoting punctuality as well as good conduct among employees
• Management of salary and ensuring employees get paid at the appropriate time

People functioning for a company utilize their complete potential and show higher productivity only when they are fully satisfied with their jobs. HR division offers this satisfaction.

Subsequent are few points which elaborate the significance of HRMS System : -

Better Management of Employee Information

As the number of employees in an organization grows, employee essential & critical information becomes vaster. One point, conventional file methods fail to efficiently handle this information, particularly in the case of data redundancy. For instance, an employee might be a slice of over one division. In common file methods, information of such person gets frequent, resulting in amplified usage of memory. HRMS system resolves this redundancy issue, and therefore handles employee information in a better way. With this system, any piece of employee information such as personal information/ details, work record, and a number of leaves could simply be retrieved when required.

A User-Friendly System

Flexibility, versatility, and easiness to use are few facets of HRMS system that make it a mandatory requirement for companies, particularly those with a huge work staff. This system will permit HR personnel to work even more expediently. With some mouse clicks, they will be capable of carrying out any important jobs related to HR management. With this system, HR division can also set up a better communication with employees and therefore resolve their problems if any, without emphasizing too much on administrative features. Moreover, this system can be completely adjusted as well as tailored according to the requirements of the organization.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

Payroll Mistakes That Benefit Employees

For employees, it is approx as best as hitting the lottery-they unlock their paychecks or log to their bank accounts and discover additional money courtesy of the company. For employers, of course, it is not almost such a happy occasion. If you make a payroll fault that advantages an employee, you will (perhaps) get that bucks back if you figure out your mistake. But if your employee thinks to be complex, it could take awhile and need a lot of effort as well as time on your part.

Payroll Mistakes That Advantage Employees

Few examples situations that could lead to payroll faults benefiting employees:

• Hourly workers whose schedules vary from one week to another week
• Getting caught in a time crunch as well as rushing through payroll, leading to unplanned overpayment
• Software glitches that could cause overly bighearted paychecks, especially when you improve present payroll system or swap to the latest one.
• Altering pay schedules.

You had like to consider that your employees will be forthcoming and let you know when you have made a mistake. Don’t calculate on it. The simple way to fix the problem is to head it off completely. Periodically audit as well as cross-check your payroll records, to ensure you aren’t overpaying.

If It’s Too Late And You Have Accidentally Overpaid Employees, What Can You Do?

Act Fast When You Discover Errors : - Informing employees they have to give the bucks back will not essentially be a pleasant discussion, but it will simply get stronger the longer the extra money is in the employee’s name.

Let The Employee Know What Happened : - It may be tempting to merely dock the employees the additional amount from her next paychecks, but endeavour to resist that urge. It is completely illegal in few states to subtract money without the employee’s explicit contract, and other states need notification and restrict the amount of money you can subtract. Along with this, employees won’t praise that way, especially if they didn’t notice the overpayment – that might be unlikely but is possible if you made an error, fess up.

Be Reasonable, At Least At First : - You don’t want to build hard feelings over the situation. When speaking to the employee, be kind & concerned and apologise for the bother. Attempt to work with them on the simplest repayment way, whether that is having them write you a check, establishing a repayment schedule or subtracting the sum from future earnings. Always, you can take a hard line afterwards if the employee balks at giving you back your money.

Moreover, if you are using a payroll service, make sure to contact the service and ask for assistance if you are altering your payroll schedule or settings, so they could support you in evading costly mistakes.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

Megasoft Solutions Provides Scalable Payroll Solution

Megasoft payroll solutions are completely customizable, simplified, and well supported with unmatched client service. With every single payroll solution, we proffer a variety of methods to submit payroll info for your convenience. Once the info succumbs, we make the deposits, file and report all of your payroll taxes, and proffer you transparent and simple labor price reporting. Even you can build your own tailored reports.

To make sure competence and integration, our payroll solutions can be synched with approx every accounting package as well as time & attendance system. We will keep your company in compliance with all central, state, and local rules and regulations so you can take care of your business. Along with this, employees have simple as well as secure access to their pay information online.

Best of all, our payroll services and programs are more scalable so we can speedily adjust to fit changing requirements. These important three sets cover basic payroll through our most advanced offering:

Full Payroll Package

For petite to mid to big sized employers with substantial payroll, human resources, and advantages policies, procedures, and requirements:

Group One

• Integration with your Time as well as Attendance System
• Payroll, HR & benefits integrated on one platform
• Ongoing 1 on 1 support as well as training
• Complete benefit administration as well as benefit compliance services
• General ledger integration with your accounting package

• Flexible as well as scalable system appropriate for companies that are rising or right-sizing
• Pre-process gross to net before submitting payroll
• Others

Group Two

• Payroll Preparation
• E-verify
• Central, State Tax Deposits
• Issuing of Checks as well as Reporting
• Payroll Check Reconciliation
• Wage/ Hour Law Compliance Reports
• Paid Leave Program
• Complete Payroll Deductions
• Vacation & Sick Time Accruals
• Third Party Checks

• Customized Reports
• Others

Group Three

• Preparation as well as Submission of Quarterly Forms
• Payroll Delivery
• Multiple State Deposits as well as Filing
• Multiple Payroll Input Options
• Department Summary
• Direct Deposit
• Comprehensive Internet Payroll & HR Communication Module
• Others

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

Ten Things The Best Employers Do Right When It Comes To Payroll And HR

We have assembled our top 10 tips from Megasoft customers who have stellar reputations as big employers. They actually know how to save time as well as money though evading potential pitfalls and appealing the best employees.

Be Professional, Reliable And Constant In Your Employee Relations

Whether your company is employing, calculating, promoting, transferring, regulating, or discharging an employee, keep everything as professional and coherent as possible. The best employers know that being fair as well as unbiased is an essential slice of employee relations.

Evade Making Exceptions To Job-Related Rules And Regulations

Redundant claims and lawsuits are frequently the results of a negative surprise or dissatisfaction aspect when an employee feels that he or she has been treated unjustly or inconsistently. Stick to your company’s known, job-related norms as well as standards, chase stated policies as personally as possible, and elude exceptions whenever possible.

Document, Document, Document!

The paper trail is your best friend when it is the perfect time to endorse, shift, discipline or fire an employee. If you are getting any of these actions, take some time to ensure its being done for a documented cause. Keep your company: Document every single thing along the way.

Stay On Top Of Tax Deposit And Filing Deadlines

Do not get punished for neglecting a deadline for dropping your payroll taxes or filing your reports. Keep a complete calendar with the central, state, country, and municipal tax deposits as well as tax filing deadlines for the year.

Maintain Complete Payroll Records

Payroll faults such as overpayments due to mistakes in data entry or not applying rules perfectly can price your company money. You require keeping payroll records to be capable of catching errors, maintain a history of your employment practices and to meet the needs of several different agencies.

Hire For Fit & Train For Skills

Employee turnover is costly. Good employers get it correct the first time by employing people who suit with their company culture – the type of person who will get along with present employees, share the whatever skills may be lacking. Skills could be learned, but values are engrained. If you employ someone with all the appropriate skills, but who doesn’t fit in, you might well come to regret that result.

Get Important Forms Signed On The Employee’s Joining Day

The faster employees sign company documents and necessary forms, the better. An unfinished file on an employee will cause you tribulations later. Because it only gets difficult to attain the signature you require after the employee is employed, do it on the employee’s joining day. Make a stack of documents and have them prepared for the employees to sign. You will save yourself time as well as difficulty later.

Put Everything In Writing

Have particular, written wage agreements with the individual employee, and get definite written authorization for any wage deductions, which are not ordered by a court/ necessary/ particularly authorised by a law.

Display Wage Posters

The poster showing central minimum wage as well as overtime pay norms should be placed where employees will see it. Ensure yours in situated in a prominent place – no matter how petite your business.

Give As Much Advance Written Notice As Possible Of Pay & Benefit Changes

Mainly if the modifications may be viewed as negative by employees, it’s the best idea to give plenty of advance notice. Pessimistic surprises are never great for employee relations. Employees praise being aware well in advance. It will give your company the best option to keep good relations, and will save you potential harm to your company’s image and reputation as a great employer.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

Megasoft’s Unbelievably Authentic Payroll Outsourcing Management System

Megasoft Solutions is one of the best and leading payroll management outsourcing companies in India. At Megasoft, we offer inventive payroll solutions to all our esteemed customers whether it is a petite or mid or a big scale enterprise. We amuse employers of all sizes. Whether you need a vanilla payroll processing ability or you require an integrated SaaS-based payroll service, we would offer you the required service, which is customised to suit all your particular needs as well as requirements.

Megasoft offers you with a meticulously obedient and well-handled service accompanied with the basic technology gallows to surpass your demands.

At Megasoft, we consist of a panel of extremely galvanised payroll professionals who take a firm belief in offering payroll services within the specified time frame and with maximum accuracy. Our expert professionals ensure that your Human Resource crew can emphasise on other thrust HR issues and trust the payroll management with us.

Payroll outsourcing management system at Megasoft Solutions continues to be its realm of expertise, whether it is a local or managed service, either multi-country or international. Our enormously specialised and profound knowledge abode chased by the best and advanced technology makes sure precise monthly payroll management of varied intricacies for all our precious customers across industry spheres.

Our customers and their several employees have an approach to all the real-time data via an exemplified website as well as one-to-one personal support. Moreover, our entirely advanced, hi-tech, computerised, and clear Help Desk Services with examining and measuring performance makes sure maximum satisfaction among the employees.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

Is It Time to Switch Your Payroll Provider?

As a prominent business owner, you probably review your processes as well as functions frequently to check for inefficiencies. This must always contain an assessment of payroll.

Several companies outsource payroll because it could be more cost-lucrative and lessen compliance issues. But, what if your payroll service provider isn’t surpassing your expectations? How do you know if you must switch payroll service providers?

Payroll providers, which offer you more stress as well as frustration that convenience, are perhaps not correct for you. Before beginning the procedure of changing companies, speak to your present service provider about your concerns. Let them know what you are forlorn with and where you feel the service is lacking. After that give the provider a month or two to cure the situation. If things do not get improved, it is possibly time to begin shopping around for other choices.

Once you are prepared to go ahead, take the subsequent steps so you could make the appropriate decision for your business as well as requirements.

Make A List

If you are thinking to seek into other payroll programs, begin by listing out the issues you are having with your existing one. Might be you aren’t getting services you necessitate from your present provider or the communication they offer is not clear as well as informative. Probably your rates keep going up but you aren’t getting anything latest. Whatever the explanations, take note of each one so you could find a new payroll service provider that will provide the service you necessitate.      

Find Out How To Cancel

Once you have finalised your present payroll service provider is not functioning, simply discover how to cancel. It might be simpler to switch at the starting of the year or the complete of the quarter, but if you don’t wish to wait, ensure that you can get set up in enough time to get the subsequently set of checks provided by payday.

Payroll service companies frequently have a process for cancellation. If you have a contract, it may price you to break it. Along with this, few service providers require a specific amount of notice for cancellation because they necessitate being capable of sending you payroll information to the latest company. Collect all of the cancellation requirements before beginning your hunt so you know what you have to do once you select a new payroll provider.

Pick A New Payroll Provider

After evaluating the problems with your existing provider and noting that what you necessitate in a new one, begin exploring what is out there. Look at company assessments and reputations, as well as service offerings and rate. Few payroll providers proffer everything you require for a maximum price, whereas other choices might be a bit less costly, yet need you to perform few of the payroll operations yourself. When vetting your latest choices, ask a lot of questions about service as well as the security of networks so you can set expectations for communiqué and privacy up front.

Shifting payroll providers is normally a procedure, but if your current provider isn’t making your life simpler, it may be time for a change. Think the pros as well as cons of the payroll provider you are using and observe if you could search another one that proffers the same advantages while reducing the issues.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

How Payroll Works

Each company, petite or big, requests a payroll system. Whether you do it internally or outsource to a best payroll service provider, it facilitates to have a common understanding of how payroll works.

The aim of any payroll system is to normalise the method of paying employees. Whereas each payroll system is slightly dissimilar, depending on company size as well as wants, how payroll systems work and their essential functional abilities are fairly universal. Normally, payroll systems comprise of the subsequent capabilities:

Payroll Scheduling & Payment of Employees

Payroll systems must handle direct deposit and set computerise payment schedules. Along with this, few might have advantage and incentive following to help with HR and check special wages.

Withholding and Chasing of Payroll Taxes

Both employees, as well as employers, have payroll taxes that necessitate being withheld. Payroll systems necessitate handling all the calculations and making payments so the company does not get in nuisance.

Payroll Reporting

The central, state and local government need businesses to report employee positions, tax withholdings as well as payments. Your payroll system must generate and file these reports.

Legal and State Labor Law Compliance

There are specific rules companies have to obey with when it comes to things like termination, overtime, labour laws, and wages. A payroll system must manage management of these.

Once you comprehend how payroll works, you necessitate establishing your system. Learn the essentials of how to do payroll with the steps below.  

How To Do Payroll

Set up Employees

All employees necessitate to fill required forms and get establish in the payroll system at the starting of employment.

Figure Out Gross Pay

Evaluate number of hours actually worked, plus additional like bonuses, commission, overtime, and any wage changes, to decide gross pay.

Note Exemptions or Deductions

Evaluation employee deductions and contributions for many things such as retirement plans, health insurance, and wage garnishments. Depending on the category of deduction, it might come after or before tax.

Decide Employee Payroll Taxes

All employees will have central as well as state taxes taken out of their checks, such as Social Security, Central Income Tax, and Medicare.

Pay Employees

Once you have fathom final pay amount, cut checks or offer wages via direct deposit.

There are several details as well as factors to think in each of these steps and the simplest method to tackle all of them is to appoint a top payroll service provider. This does have a price linked with it, but several companies discover it saves them in the long run because relying on a professional lessens the likeliness of penalties and maintains employees focused on the business.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

How Much Should Payroll Services Cost?

Appointing a payroll company for your petite business might save you time as well as money. Since you won’t necessitate committed payroll specialists on employees, you will have lesser personnel to pay and could save on extra business software prices. Also, there is a great chance you will have fewer faults and, eventually, fewer tax penalties if you outsource to a professional.

If you have finalized outsourcing is the best option for your business, how much must you pay so you get the maximum return on your investment? That completely depends on your requirements and how much you want the service to manage.

What Do Payroll Companies Cover?

Mainly payroll services proffer various packages for different company sizes as well as needs. Generally, you can get as small as a basic payroll system or as much as an integrated HR, payroll, and advantages system. Basic systems frequent contain features like employee access systems, tax filing, processing of paychecks, and direct deposit.

Complete packages might cover few additional tax requirements, comprising of tax processing, reporting, and mailing, but these could come with additional payroll prices. Along with this, providing paper paychecks might be a slice of a package, but you could incur delivery charges each pay period. When you add integration with several other business jobs, like handling advantages and HR, this might augment the payroll services price as well. Thus, even with extra costs or payroll packages in the higher array, appointing a professional might still be more cost-effective and competent than paying someone in-house.

How Much Should I Be Willing to Pay?

You might pay around more than thousand bucks per employee every year to get the complete array of payroll and human resource services. When you evaluate the price of outsourcing to the hourly salary/ wage you will have to pay for an employee to make payroll each period as well as learn the tax necessities, not only can you get more value with a provider, you get resources from certified experts.

Since each company’s wants are diverse, as a common rule, attempt not to spend over one-third of your business’s profit on payroll prices. This will keep your investing on internal methods in check so you can invest more in growing the business and making a revenue.

As there is not essentially a standard payroll price when you outsource, you could generally save on the procedure by taking it outside of the company. There is abundance of package preferences available to cater businesses of all sizes as well as needs, so fathom what services are essential and talk to a provider about how they can surpass those needs. If you want a small help getting started, contact Megasoft to converse with one of our representatives or get a quote to search what package and pricing choices will work for you.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.

4 Tips For Improving Your Payroll Accounting

Payroll is one of the most significant routes for a business. Employees want to be paid and taxes require to be filed no matter how petite or large the company. Although few people outsource payroll fully, others operate it themselves or merely outsource slice of it. Whichever approach you do it, it is essential to ensure that your payroll accounting is enormously capable so you do not make errors or lose money in the procedure. To enhance payroll for your petite business, track the tips below : -

Process All Payments At The Same Time

Few companies do payroll accounting for several types of employees at various times. Having different pay schedules are not awfully efficient because it could cause duplication of your processes and offers you manifold schedules to sustain. For example, hourly employees might get paid each two weeks whereas full-time employees get paid once a month. Presently, if your company rips payroll processing by groups, you may be capable of reducing faults/ blunders if you instead do everything at once.

Make The Process Automated

Physically processing payroll is not only time-taking, but it might lead to mistakes. If you are doing payroll accounting by manually/ typing it into a spreadsheet, it might be complicated to get everything in and all of the calculations just right. Accounting to sources, faults due to manual processes can lead to additional prices of 1-8%. Performing payroll accounting without a payroll system could also capability lead to erroneousness or employee manipulation, which might effect in penalties.

For petite businesses, outsourcing payroll may be an even better choice as payroll accounting providers are professionals in this field and can prevent redundant costs. Partnering with a company proffering payroll services for petite businesses can help keep mistakes as well as tax penalties to a least. Also, this maintains your employees emphasised on rising business rather than investing precious time operating payroll operations.

Integrate Business Systems

Even if you have a committed payroll system, if it does not assimilate with your HR and accounting systems, it might not be very competent. Fixing these systems will provide you the highest ROI by helping you free up resources as well as time and evade data entry faults. Precision is essential for payroll and HR systems and if you are endeavouring to operate the two separately, you could have issues with data replication and inefficiency. With one system, you just have one set of data to sustain and it could be simply available for any division that requires it. Several payroll services for petite businesses are well designed to combine with HR for this reason and can follow reports, as well as paid taxes, wages, trends, and benefits.

Engage Employees

If you do not already have it in writing, ensure you write down the particulars of your pay policy and provide it to your employees upon appoint. Right from the starting, you want to be translucent so your employees know unerringly what to expect. This can thwart issues in employee classification as well as payroll accounting and sketch out what will happen if there ever is a fault.

Once everyone is privy to the process, ask for effort. Keep communication open so there are lesser misinterpretations about payroll regulations. Also, if you ask your employees for suggestions or enhancement ideas, you will perhaps get maximum support if you ever think to make changes.

If you may seek any further information, please log on to www.megasoftsol.com or Call 011-46067710

Disclaimer: This Blog/Information/News Item/Press Release has been Posted/Reposted by Megasoft Solutions India.