It is important for employers to maintain the records of the number of workers they employ, the salary given to them, deduction of taxes on their salaries, payment of those taxes to the government, keeping the track of the number of leaves taken in a month; etc. It is a time-consuming task that requires assistance, particularly when it is a micro or small business. Payroll is crucial from the moment the business hires its first ever employee. Payroll is not only required from a legal compliance perspective, but also from an accounting perspective, as payroll taxes considerably affect the net income of most businesses.
Informed decisions on attendance, employee-related expenses, increments and number of leaves are important from payroll’s perspective.
There are many compliance-related issues with regard to payroll management such as tax-related issues, filing of employee taxes, maintaining all the leave records and generating pay slips.