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Payroll Methodology Overview

This document outlines Exl-source's payroll outsourcing methodology. It consists of 4 stages: 1) Analysis to understand client needs, 2) Transition for setup and training, 3) Pilot run to validate data entry and calculations, and 4) Production for ongoing monthly payroll execution. Key aspects of the methodology include a structured approach, use of payroll software, timely and accurate payroll processing and reporting, and ensuring statutory compliance. Security measures like firewalls are also discussed to protect payroll data and documents.

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r_mamtu
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1K views13 pages

Payroll Methodology Overview

This document outlines Exl-source's payroll outsourcing methodology. It consists of 4 stages: 1) Analysis to understand client needs, 2) Transition for setup and training, 3) Pilot run to validate data entry and calculations, and 4) Production for ongoing monthly payroll execution. Key aspects of the methodology include a structured approach, use of payroll software, timely and accurate payroll processing and reporting, and ensuring statutory compliance. Security measures like firewalls are also discussed to protect payroll data and documents.

Uploaded by

r_mamtu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Payroll Methodology

-Ranjana Vaidya
C.A.
[Link]
Theme
 Exl-source is a software-neutral payroll
service provider which can take best of the
available software to suite client need.
 We can use any payroll software with strong
methodical service orientation.
 Because we believe sensitive activity like
payroll service is more important than the
tool used.
Execution Objective
 To build methodical & service oriented
approach in execution of Payroll as it is a
sensitive activity and needs to be executed,
 Timely & consistently
 Correctly to the last detail
 To Fulfill statutory obligations/compliances
 To give complete picture every month to
management and employee
 Supportively & predictably
Approach
 Methodical structured approach to
payroll outsourcing
 to help us Assess, Analyze and to Build
solid execution
Four Stages
 Analysis stage –documenting the details
gathered.
 Transition stage - preparation
 Pilot stage – verification
 Production stage
Stage-I: Analysis
 Understand client business
 Alignment of outsourcing strategy with the
corporate strategy
 Assess requirement
 Review environment
 Confirm viability
 Identification of an outsourcing champion
 Establishment of clear timelines around the
outsourcing initiative
Stage-II : Transition
 Team mobilization (technology &
domain)
 Training in tools and procedures if
required
 Hand-over of responsibility to our team
 Establishing necessary set-up
Stage III : Pilot
 Data collection and entry in the D/B
 One time data
 Company & employee
 Monthly data
 Data in between the months
 Data validation with the client
Pilot execute (cont…)

 Verify per the checklist, if we have received the


monthly data in complete
 Enter the data in the salary processing software
 Data entry validation
 Verify if software has given considerations to all
exceptions. If not do the necessary changes
manually.
 Generate salary working and send ‘variance’ &
‘monthly’ report to customer for verification
Stage IV : Execution
 Monthly: (pdf file over the email)
 Salary slip to the employee with leave balance & to date fig.
 Consolidated report to the management
 Note to the Bank for disbursement of salary
 Monthly tax deduction statement
 Monthly PF/Society contributions
 Projected Income tax working for the year
 Annually/Quarterly
 MIS
 Quarterly tax return documents to company and to employee
 Salary certificate to the employee
 Attending to the call of the employer/employee on specific
issues
Payroll Back Office
Scope of services

 Maintenance and updating of employee information sheet / salary


register
 Calculation and preparation of monthly salary sheets.
 Calculation and deduction of statutory deductions like Provident Fund,
Profession Tax, Income Tax etc as and when they are applicable.
 Calculation of with holding tax, statutory and non statutory deductions
on salary.
 Monthly pay-slips to employees
 Quarterly IT report to employees
 TDS CERTIFICATES
 Issue Form 16 to all employees
 TDS RETURNS
 Filing of quarterly salary eTds returns.
Security
 Our system and processes ensure Physical,
Network, data, document security against
access, copying, forwarding.

Internet
line 1
Switch

Firewal
l

Internet
line 2
People
 Team of 16 professionals in Payroll &
Accounts
 Rajendra Vaidya –B.E., MMS
 20 year of corporate experience
 Ranjana Vaidya –F.C.A, CISA
 19 years of F&A experience

 Shirish Bhagwat -B.E (Inst), M.S. (Comp. Comm)

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