Salary processing consists of the steps needed to pay employees each period. It involves tracking hours worked, calculating allowances, deducting money for employee benefits, and remitting payroll taxes. Implementing a solid salary processing method helps employers avoid penalties for breaking various Labor laws (minimum wage, unpaid overtime), calculation errors caused by manual entries etc and payroll software makes it easy.
In each salary period, employees work, and employer must pay them based on a calculation of the hours they work and their pay rate. Before giving the employee a paycheck, however, you need to withhold money for expenses like state and central taxes, unemployment, and insurance etc
Net pay is the amount employees receive after you subtract their tax withholdings and benefit deductions from their gross pay (hours worked x hourly pay rate or salary per period). It is the difference between gross earnings and gross deductions. Once net pay is calculated, you should pay your employees in the form of a paper check, direct deposit, or payroll card.
On the surface, payroll processing might seem complex; but with AttendHRM salary software, it is easy to process salary for small to large organisations. Check out a simple payroll process flow shown below: