What is the difference between Payroll management process and Payroll management?

Payroll is one of the important sections of any business organization that has employees. It deals with handling the payments for the employees of the organization. There can be many mistakes which can happen in the payroll than you think. So the work of the payroll is not that easier as it appears. The payroll management process must be done in a much organized way to ensure that the payroll system is working properly. It is important to understand that there is a difference between payroll management process and payroll management. A proper payroll management guide will give a proper understanding about the difference between both.

What is the difference between Payroll management process and Payroll management?

There are some basic differences between payroll management and payroll management process.

Here is a simple payroll management guide that will show some difference between payroll management process and payroll management:

Payroll management process

The payroll process includes some of the specific set of tasks in disbursing the salaries of the employees. Here, systematic deductions as per regulations are done, proper salary calculations, taxes are deducted, and other factors are considered.

Some of the important payroll management process activities include:

1. Gross wage calculations

A proper calculation of the gross wages are done for every employee. The calculations here are based on salary amount, hourly rates, commission structures, and other relevant factors.

2. Time and attendance consideration

While calculating the salary amount, time and attendance of the employee are considered. It has to be collected and verified properly to ensure accuracy while calculating salary.

3. Deductions and contributions

All the deductions in the employee salary must be done properly as per the compliance and tax regulations. These will include social security contributions, tax deductions, benefits, and withholdings.

4. Payment disbursement

A proper disbursement of the payments must be done. It can be done with either cheques, deposits, or other payment methods.

Payroll Management

Payroll Management includes a broader activities apart from basic payment to the employee. Here, a proper coordination and overview is done for the payroll activities.

Some of the important payroll management activities include:

1. Compliance with regulations

A proper compliance with the tax laws and other regulations must be considered. Proper knowledge about the regulations of particular regions is important.

2. Setting payroll systems

The payroll manager must set proper systems for managing the payroll system. Here, the procedures and policies need to be considered properly here.

3. Manage the employee records

A proper management of the employee records must be done under this. It will include earnings, personal information, deductions, compliance with taxes, etc.

4. Generate payroll-related reports

A proper payroll-related report must be generated by the managers here. It must be given to the management and owners.

The payroll management guide given above is sure to provide relevant differences between payroll processing and payroll management. Payroll management process is mainly concerned with timely accurate salary calculations and disbursing it properly. While, payroll management will include overall administration and coordination of the payroll activities.

If you are finding it difficult to handle the payroll system of your organization then you can outsource this to experts. Meru Accounting provides outsourced payroll management services. Their team has proper knowledge of compliance related to payroll management of different countries. Meru Accounting is a popular accounting service providing agency around the world.

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What is the difference between Payroll management process and Payroll management?