When you are a new business owner, you have all the zeal of the world to try different things and find out what works for your business in the best manner. The dream may start with you and your business partners but continues to keep adding people as employees. In no time, you from being a jack of all trades become the real strategy maker and chief thinker of the company. Now, the employees are the one executing the tasks, supporting your ideas, telling you the new ones. Honestly, they do a lot for your company and its growth. While you do pay them in return for the same, there is a lot of labour that goes into it. Right from the time you hire a single person, you are ought to stay compliant with the labour and employment laws of the state and central government. This makes it inevitable for you to know the right way to set payroll for the first time. Here is a basic checklist, take a look.
Apply for Form 49B-
This form is your very first step to setting payroll as it lets the government allot you a tax deduction and collection account number. This is given to the companies so that they can deduct or collect tax at source. At the early stage, the deduction depends on the salary of the employees. But, completing this task at the start is always good, otherwise, you would end up getting in the end time hustle when an employee will fall under some tax slab. Payroll management software India has are capable enough to keep them updated with the latest government norms.
Get the employee info-
As an employer, you must have personal and professional employee information that is necessary. The information is necessary for you to file taxes. So, make sure you know the full name, UAN number, current address, date of birth, PAN card number, Aadhar card number and more. You can ask the employees to fill this information in the payroll software you use. Majorly, the various kinds of payroll and HR software India have are made to keep such information with them. The same will also reduce your workload. Besides, PF and ESI information should also be shared by them with you.
Group the employees-
You must group the employees on certain biases like a permanent employee, part-time employee, freelancer, and workers who get paid for the hours. This filter is not available in all the payroll management software India has. However, this makes it easy for you to identify how much you owe to how many employees.
Decide the pay structure-
Everything in a company has to happen in a certain way, so there has to be CTC for every employee defined when he joins. The components of that should be clearly defined. Will you give the food coupons or pick-drop facility, lunch, bonuses??? Will the employee’s PF be deducted or not.
Choose a payroll Software-
Many payroll management software India has are not very reliable, but a few of them are highly reliable. It is a very bad decision to not get payroll software and rely on excel sheets and manual work. It wastes a lot of time and money.
Remember the tax filing dates-
This is the toughest part but never rely entirely on the software. It can miss an update sometime but if you will forget them, you will end up facing the repercussions. So keep a tab on the same. If you will not be abreast with the changes, it can get you is some serious legal battles and leave your people disgruntled. Complete these steps so that you can think of growing and expansion plans with a free mind.
Important Note: Please do not take it as tax advice. The most reliable sites for this are government ones as the rules are subject to change.