The Importance of Payroll System for Companies
Corporate Secretary Service Indonesia – The term Recruitment & Payroll Processing service or software is currently not a unique term. Especially in the Human Resources Department (HRD) of a company/institution, the use of such software is common. Various sophisticated payroll software are also widely circulated in the market. Offering various features that make the job of calculating employee salaries easier.
Well, before we answer and review the answer to the question that became the title of this article, it is better to first understand the function of payroll in the payroll mechanism in a company or government/private institution. Hopefully, by understanding the function of payroll, we will get a clearer picture of why payroll software is now very important.
Payroll Function
Payroll can be defined as a payroll system or mechanism implemented in companies or government/private institutions. So, when talking about payroll, it will be related to the issue of employee salary payments. The physical form is a pay slip that is given to employees at the beginning or end of each month, depending on the regulations of the company or institution.
Departing from this definition, the function of payroll is very important, namely how to provide detailed and accurate information about material rights (money) or payroll received by employees. For this reason, the HR department has a position called a payroll officer that also Recruitment & Payroll Processing service can take part. His job is to calculate the salary of each employee at the beginning or end of the month. It also includes making a salary recapitulation report of all employees, which becomes material for the company’s or institutions financial statements.
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Then, what must be calculated by the payroll officer, which will later be listed on an employee’s pay slip? There are several items of information that are calculated. Starting from the amount of salary or gross income of an employee. Of course, each employee has a different salary amount. It depends on the position or position, work load, and achievement or target achievement of a job.
Then, after the value of gross income is calculated, proceed with the calculation of deductions from the employee’s income. Salary deduction items can be in the form of deductions for old age / retirement funds, employment and health insurance, late deductions, deductions for loans or debts to companies / institutions, and income tax deductions.
Of course, the value of salary deductions for each employee is different. Just take one example of the income tax deduction item. Because each employee has a basic salary amount that is not the same, the income tax calculation is also different. Including there are also those whose salary amount has not entered the taxpayer, so the income tax is calculated as zero or none.
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