Get to know the Payroll System: Definition and Benefits
Corporate Secretary Service Indonesia – What is a payroll system? A payroll system is a company’s system for employee payroll administration. This process can also be referred to as an employee salary calculation system. Every company must have a recruitment & payroll processing system. Usually, this system is implemented by HRD, which manages the employee payroll process every month.
A payroll system can simplify the HRD team’s performance. Compared to the manual method, of course, using a payroll system can provide many benefits for the company. One of them is how the payroll system can calculate salaries more accurately. By doing the payroll calculation manually, there will be a possibility that the calculation is wrong. Human error is an error that often occurs when calculating payroll manually. However, this can be a solution by using a payroll system with the help from PortCorp. One of them is managing employee recruitment & payroll processing. By using HRIS, payroll management becomes more accessible and more accurate.
Definition of Payroll System
By definition, payroll is a system of calculating and paying employee salaries and benefits by the company. This process includes calculating employee salaries based on the number of hours worked or monthly salary, tax deductions, health insurance or pension funds deductions, and payment of other benefits such as bonuses or commissions. Payroll is essential for maintaining a good relationship between a company and its employees. Employees who feel that they are paid fairly and on time tend to be happier and more motivated, which can improve the company’s overall productivity and performance.
In addition, companies must also ensure that the payroll process is done correctly and in accordance with government regulations regarding salary and tax payments. Therefore, the company’s finance or human resources department should carefully and professionally design and execute payroll policies and procedures.
Read Also: Learn the Purpose of Financial Audit & Review in Companies
Benefits of Using a Payroll System in a Company
Here are the benefits of using a payroll system for companies.
Time Efficiency
By using a computerized payroll system, companies can save time that was previously used to calculate salaries manually. The salary calculation process can be done quickly and accurately, allowing companies to focus on their core business activities.
Accuracy in Calculating Employee Salary
An automated payroll system can minimize human errors in calculating employee salaries and benefits, thus ensuring that each employee receives a proper and fair wage.
Integrated Data
A payroll system is usually included as a feature in employees’ HR software. One of the other features of the HR software is attendance. Employee attendance data stored in the system will automatically reflect the calculation of employee salaries when entering the payroll period. Thus, HR no longer needs to calculate employee salaries manually.
Cost Savings
Recruitment & payroll processing systems can also help companies identify unnecessary employee costs, such as excessive insurance costs or improper tax deductions. Companies can save costs and improve operational efficiency by conducting regular audits. Thus, payroll can provide significant benefits to companies, including improving time efficiency and accuracy.
Don’t worry about developing your business by setting up a company in Indonesia with recruitment & payroll processing systems, because Portcorp is here as a solution for your business. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
