Do you really need a Payroll?
If you belong to an organisation of, say, more than 10 people, you've probably heard one of your colleagues complaining about the headache that payroll computation gives them. And if you're not an accountant or HR professional, then you probably don't understand what the fuss is about. How is handing out monthly salaries such a task? If it's so hard, then why don't they just hand it out manually instead of subjecting it to a system?
If you're asking these questions, then you probably don't know that payroll is meant for more than just detailing how much salary is to be paid at the end of the month to each employee. You see, a payroll is the breakdown of the overall compensation that an employer pays an employee directly and indirectly. What that means is, there are "direct" benefits (like allowances) that accompany what you know as "salary", and these are all accounted for by the payroll. There are also "indirect" benefits that an employee enjoys just by being part of an organisation, which are not included in the monthly salary. You might have heard of "group life insurance"? Yup, this is one of them.
These figures have to be accounted for because they all add up in some way to the salary an employee receives, and apart from that, you need a place to extract your data from when the government comes calling. The payroll helps to organise your tax schedules and other important reports that let government officials know you've been keeping with the law.
If you still don't get it, (na wah for you o), let me put things in perspective for you. The importance of a payroll includes:
If you're asking these questions, then you probably don't know that payroll is meant for more than just detailing how much salary is to be paid at the end of the month to each employee. You see, a payroll is the breakdown of the overall compensation that an employer pays an employee directly and indirectly. What that means is, there are "direct" benefits (like allowances) that accompany what you know as "salary", and these are all accounted for by the payroll. There are also "indirect" benefits that an employee enjoys just by being part of an organisation, which are not included in the monthly salary. You might have heard of "group life insurance"? Yup, this is one of them.
These figures have to be accounted for because they all add up in some way to the salary an employee receives, and apart from that, you need a place to extract your data from when the government comes calling. The payroll helps to organise your tax schedules and other important reports that let government officials know you've been keeping with the law.
If you still don't get it, (na wah for you o), let me put things in perspective for you. The importance of a payroll includes: