Payroll Management- Basic Relation between an Employee & Employer


“Payroll” is the data of financial activities, which includes salary, wages & bonus of the employees working in a particular business setup. It consist all the figures, related to number of heads working, salary structures according to their job responsibilities, their bonus structure and many more aspects related to employees. It also consist the leave management, i.e. how many leaves applicable for a year and also tell how many leaves have already been taken by a particular employee and many left.

Payroll management helps a lot to a business to make:-

  • Better and cordial relations with the employees
  • Interact them on personal level
  • Policies which are feasible for the employees, in accordance with their participation.
  • Employees love and loyalty towards themselves, to control attrition.

Payroll management always supports an organization and its employees to employees themselves in terms of each other satisfaction towards each other. It also leads to high morale of the employees, since this management keeps everything under one umbrella that, every employee knows, how he is going with his job.
Payroll management also helps the organization to know the behavior of its employees, which helps them to create that kind of environment, where everyone enjoys working with each other.

A Payroll Management consists:

Salary Structure:

Payroll management always has a record of overall salary structure of every employee, whether he is working on the profile of housekeeping or working on the profile of some senior position.

Leave Management System:

Payroll management also keeps track of leaves that is taken by every employee & also convey the same information to employee as well on timely basis, moreover; also tell the balance leaves that he has for a particular time period.

Accurate Employee Details:

Payroll management helps organization to keep a close eye on every employee; they know every suitable aspects of a particular employee, like
• General Details
• Previous employment history
• Last CTC
• Bank details etc….

 Deduction Structure:

Payroll always keeps information of overall deduction over the salary of every employee. There are many kind of deduction that should be levied over the gross salary of employees, like, tax deduction, for some charity, welfare fund and various other types of deduction. So, whenever, employee gets his salary, by the help of Payroll, organization deduct these amounts and give them their net salary.

Provident Fund Information:

PF is a very big saving for any employee, in his whole tenure, especially in private firms, PF is the only money that he gets after his retirement. So, it is a mandate thing, for any organization to keep a proper record of this & always keep inform the employee for the same.

That is how a sound payroll management can regulate the basic workforce of any organization in well manner & an unsystematic one can demolish everything every time!!!

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