Every business requires some methodology of processing the payrolls irrespective of the industry that business belongs to. There are some sections of the industry that require a more detailed payroll system in comparison to others to run their day-to-day processes smoothly. One such industry is the manufacturing industry. In this industry, many roles are on different pay scales.
There are multiple sectors in this industry which each company has to deal with, such as machine operations, assembly work, packaging of the products, shipping, organization, supervision, management, and much more. The industry is so vast even for small scale manufacturers that there is a need for sophisticated payroll services for manufacturing to reduce the chances of error in the manufacturing business.
In addition to the different sectors in the industry, the pay cycles of the workers are also different for many manufacturing companies. With different pay cycles mixed with multiple pay rate calculations, the companies also have to break down the salary of every employee to comply with the state labor laws. In short, for manufacturing companies, payroll management is one of the major time consuming expensive matters if they are doing it in-house.
Payroll Definition?
In simple terms, you can define payroll as a list of employees who get paid for the work they are doing for your company. It is the money employer transfers to the employees based on the contract the company has with the workers. There are a lot of aspects of the payroll which the company has to consider to make sure they comply with all the laws and policies.
The Components of Payroll
Every component of payroll processing has its significance. When you have to pay your employees in the manufacturing industry, it is important to comply with the laws and policies stated by your company as well as the central and state government. The following are the main components of payroll.
At this stage, all the data validated by the accounts and HR department entered into the payroll system so that the actual payroll can be processed. The net pay that you get after all the calculations includes all necessary perks, allowances, etc. and excludes all the applicable taxes, etc. When you are calculating the payroll to be paid, you also have to get data from different sources such as attendance register. Once the payroll is ready, it is very important to double-check the values and verify the final payroll’s accuracy to avoid any issues in the future.
Statutory compliance
There are several deductions that need to happen at the company’s end before the employee gets the pay in his or her account. Such deductions include TDS, ESI, EPF, and other charges. It is the company’s responsibility to make these payments to the respective government agencies.
Payroll accounting
It is the responsibility of every company to keep records of all the financial transactions. The salaries are one of the most important aspects of the operational cost involved in running the business. It is very important to include all the information about the salaries paid on your accounts. It is also the responsibility of the designated payroll processing department in the manufacturing companies to make sure that the salaries and reimbursements paid to the employees are double-checked for any errors regularly, which makes Payroll Services for manufacturing even more challenging.
Payout
In general practices, especially after demonetization, the companies prefer to pay the salaries directly in the bank accounts. It is also easy to keep track of the payments made if they are visible in the bank statement. To complete the payroll process, it is important for you to ensure that there are sufficient funds in your company’s account. The payments can be made in bulk by sending a salary bank advice statement to your bank branch. The statement includes the necessary information such as employee ID, amount to be paid, bank account details, etc. For those who use payroll services for manufacturing, it becomes very easy to issue payslips, and if the software for payroll solution for manufacturing companies that you are using has an employee login section as well, the employee can check all the details in it and download the pay slips himself.
Reporting
Once the payroll is complete, it is the responsibility of the department handling the payroll system to keep all the records systematically. In case the management requires some specific information about a branch or sub-section in the company, including the amount paid, perks, etc. you should be able to dig the information and provide it to them in the shortest possible time frame.
The process of payroll solution Manufacturing Companies is so complicated that they nowadays prefer to outsource the whole payroll system. When you outsource payrolls, the agency you are hiring will take care of everything from including the name and other details of the new employees, complying with the company’s policies and the law of the land, and calculate the amount to be paid after adding and deducting necessary amounts. They will be responsible for safekeeping all the records and send you weekly or monthly reports, as suggested in your contract with them.
How to Run Payroll?
Before you even start the hiring process, you should make sure that your business complies with all the central and state laws, such as labor laws and fulfill all the requirements. You should have the accounts set up for tax payments for your employees. Once you are ready with all the documentation and other requirements, you are prepared for the payrolls. If things start to get confusing for you, you may consider joining a payroll training program or outsource the payroll process.
You can breakdown the payroll process in 6 steps as follows:
- The employee’s documents
When you hire an employee, it is important to have the payroll-related documents with you. Such documents include a contract that your company’s employee signs, PAN number, and other authorization forms. The content of the forms can vary from company to company and from post to post. The forms are also different for salaries and contract workers. With the help of this data, the Payroll Process in HR department in your company will be able to include the employee in the payroll system.
- Calculating the working hours
When we talk about the hours a worker has spent in your establishment, it can have multiple components. The employee might be working onsite or offsite. Also, overtime and other aspects should be included in this calculation. Most of the new companies can start with a simple hour sheet, but as the size of the company grows, you may want to consider systems like biometrics, etc. Many companies now consider outsourcing payroll management or Outsourcing Payroll Processing to companies that provide payroll services for manufacturing and industries.
- Calculating the gross pay
There are two components of working hours which you need to consider while calculating the gross pay. The first component is the straight time, and the second component is the overtime. Generally, pay for overtime is higher in comparison to the straight time. Adding both will give the total gross pay of the employee.
- Calculating deductions and benefits
As per the law, it is the company’s responsibility to deduct taxes, PF, and in some cases, EMI from the gross pay. Also, at this stage, the payroll department will add the charges such as TA and DA in the amount to be paid to the employee.
- Paying the salary
The next step is to issue the payment to the employee. You can make the payment in cash, cheque, or direct deposits. Please note that if you want to make direct deposits in the employees’ accounts, a separate form will be required by the bank to allow such deposits.
- Documentation of the payroll records
For every company, it is important to save all the payroll records. If you are hiring Payroll Services for Manufacturing, the company that is providing you the services take the responsibility of keeping all the payroll records as discussed in the contract with them. From time to time, the state or central government may ask for an independent audit for your company. At that time, you will need these records to make sure that you are complying with all the central and state laws. Also, at the time of tax filing for the company, these records are important.
Industrial and Manufacturing Services Provided by NBS My Manpower
Industrial and manufacturing organizations have well-defined processes that they follow to ensure optimal productivity. For large scale industries, it is essential to use enterprise systems for payrolls and other accounting related operations. Without a set system, it is not possible to run an error-free payroll process in any organization. NBS My Manpower provides payroll services for the manufacturing and industrial sectors to manage payrolls efficiently and smoothly.
The company offers an integrated payroll system that is highly customizable. It can easily work with the existing enterprise system that manages the rest of the operations in the unit to ensure a seamless flow of data and information. Based on the requirement of the client, NBS My Manpower provides custom service portals for approvals and issuing payrolls. The offsite payroll system you can stay assured that there will be information leak at any step.
NBS My Manpower also provides temporary staffing services for different sectors. When you opt for this service, every process that is included in hiring the temporary staff will be handled by NBS My Manpower. The company will handle the contracts, payrolls, personnel administration, and documentation of the employee for your company. From the first step of finalizing the right candidates to the last step of making the full and final payment, NBS My Man Power will handle everything on behalf of your company. The payroll services for manufacturing and industry by NBS My Man Power makes the whole process simpler and easier to manage without the admin hassle.
Go for payroll services for manufacturing
Payroll management is an important aspect of every industrial and manufacturing company. There was a time when companies had to rely on handwritten or typed payroll logs, which were prone to human errors and frauds. As time passed by, automated systems start to take the place of an offline payroll management system. However, it was not possible for such automated systems to include additional categories or work with multiple pay scales in the same company.
The demand is the mother of invention, and such demand for flexible and customizable systems gave birth to current payroll services for manufacturing, which can not only work as standalone applications, but it is also possible to integrate them with the enterprise solution the companies are using. With service providers like NBS My Man Power, payroll management has become easier for large manufacturing units where thousands of employees work on different pay scales in different departments under the same roof.
Payroll outsourcing companies provide basic to complex payroll administration for businesses. They maintain individual payroll files for each employee and compute all the salary and reimbursements on time. You get comprehensive reports, direct access to payroll experts, and save time and money in the process.
Outsourcing Payroll Processing
An outsourced payroll service has a web-based connection that makes it easy for employees and employers to request and manage time off accruals. Reports give a detailed ledger by employee for each pay period with data for wages and deductions
A payroll company's basic services include calculating payroll and tax obligations for each employee, printing and delivering checks, and providing management reports. Pay checks can be issued on a weekly, bi-weekly, monthly, semi-monthly or yearly payroll basis.
Payroll processing refers to the task of managing the payment of wages by a company to its employees. Most companies use either a payroll software system for payroll, or else a third-party payroll processing service.
Payroll Management is the administration of the financial record of employees' salaries, wages, bonuses, net pay, and deductions.
In essence, the payroll management process refers to the administration of an employee's financial records which includes the salaries, wages, bonuses, deductions, and net pay. This organizes the process and fosters consistency for your employees. It impacts your business with the following: Morale of employees.
Payroll refers to the process by which employees receive their salary. Functions involve balancing and reconciling payroll data and depositing and reporting taxes. The payroll department takes care of wage deductions, record keeping and verifying the reliability of pay data.
Payroll processing refers to the task of managing the payment of wages by a company to its employees. The steps involved in payroll processing typically include gathering employee time information for a selected time period, managing benefits & deductions, and distributing employee pay for that time period.
Businesses may hire an external firm to handle all payroll functions to save time and money, reducing the need for in-house trained payroll staff, purchasing and maintaining appropriate software packages, and staying compliant .
Payroll functions are covered by either the finance department or human resources department in most organizations. At the same time, payroll is also considered a function of HR because it pays and deals with people. Take, for example, maternity pay.
Payroll refers to the process by which employees receive their salary. Functions involve balancing and reconciling payroll data and depositing and reporting taxes. The payroll department takes care of wage deductions, record keeping and verifying the reliability of pay data.
The Payroll Management System deals with the financial aspects of employee's salary, allowances, deductions, gross pay, net pay etc. and generation of pay-slips for a specific period. The outstanding benefit of Payroll Management System is its easy implementation.
Payroll Management System is the system by which an employer can manage the salaries of the employees. It includes salary, allowances, deductions, and net payable to the employees. It also deals with the generation of payslips.
Talent acquisition is the process of finding and acquiring skilled human labor for organizational needs and to meet any labor requirement. When used in the context of the recruiting and HR profession, talent acquisition usually refers to the talent acquisition department or team within the Human Resources department.
Acqui-hiring or Acq-hiring is a neologism, or a talent acquisition, is the process of acquiring a company primarily to recruit its employees, rather than its products or services. Ben Zimmer traced the derivation of the phrase to a blog post in May 2005.
Recruitment Process Outsourcing
Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider. An RPO provider can provide its own or may assume the company's staff, technology, methodologies and reporting.
Recruitment Process Outsourcing (RPO) is when a company transfers all or part of its permanent recruitment to an external provider. An RPO provider can act as an extension of a company's HR or Resourcing function, sitting on site with the client providing a holistic hiring solution.
Recruitment Process Outsourcing (RPO) is when a company transfers all or part of its permanent recruitment to an external provider. An RPO provider can act as an extension of a company's HR or Resourcing function, sitting on site with the client providing a holistic hiring solution.
Recruitment Process Outsourcing Companies
Benefits of RPO (Recruitment Process Outsourcing)
Stronger Quality of hires. This is the main purpose and advantage of an RPO provider.
Cost Reduction. Obviously one of the prime advantages of RPO is its cost effectiveness.
Scalable Model.
Reduced Time to Hire.
Talent Pooling.
Recruitment Process and Assessment Design.
Analytics and Reporting.
Enhanced Stakeholder Engagement.
Recruitment Process Outsourcing (RPO) is when a company transfers all or part of its permanent recruitment to an external provider. An RPO provider can act as an extension of a company's HR or Resourcing function, sitting on site with the client providing a holistic hiring solution.
Recruitment Process Outsourcing (RPO) is when a company transfers all or part of its permanent recruitment to an external provider. An RPO provider can act as an extension of a company's HR or Resourcing function, sitting on site with the client providing a holistic hiring solution.
Recruitment Process Outsourcing Services
Recruitment is a process of finding and attracting the potential resources for filling up the vacant positions in an organization. Recruitment process is a process of identifying the jobs vacancy, analysing the job requirements, reviewing applications, screening, shortlisting and selecting the right candidate.
Recruitment Outsourcing Companies
The benefits of shorter recruitment cycles
Increase profitability and performance. Faster, more effective recruitment can have a far-reaching impact on your business performance.
Attract higher quality candidates.
Reduce attrition and improve productivity.
The search strategy utilizes research tools required to complete the process, which include internal and external databases of senior executives, market analysis, and other alternative online sources. Executive search consultants also use their own contacts and network for the executive search process.
Executive search firms are specialized recruitment services that find top-level candidates for senior, executive or other highly specialized positions for clients. Many clients use them to find candidates that may not be immediately identifiable in the market and, essentially, avoid the cost of a bad hire.
Executive recruiters, sometimes called executive head-hunters, are the recruiting professionals who focus on filling executive positions within companies.
Executive recruiters, sometimes called executive headhunters, are the recruiting professionals who focus on filling executive positions within companies. This involves a structure whereby the client company “retains” or pays a recruiter to work on a particular high level job.
Executive Search Consultants are typically engaged by organizations to source the "right" talented persons for usually senior/ CXO positions. Its also called "Head Hunting"! They charge a fee from the client organizations for the "sourcing" service rendered.
Top Executive search firms are specialized recruitment services that find top-level candidates for senior, executive, or other highly specialized positions for clients. Many clients use them to find candidates that may not be immediately identifiable in the market and, essentially, avoid the cost of a bad hire.
Contract Staffing as the name speaks is a method of recruiting required human resource on contract. This contract could take place between one company (mostly staffing firm) and an individual or between two companies.
Contractual staffing is a remuneration based pay scale means per day or limited pay area of income. Basically, contractual staffing stands for a short time period on the basis of written agreement between two or more persons after completing your job its automatically end over.
When a client has a long-term need, direct hire is ideal. Direct hire positions are permanent, usually full-time positions with benefits. A staffing agency is involved during the recruitment and hiring process, but after an offer is accepted, the candidate goes directly on the client's payroll.
Contractual staffing Agency is remuneration based pay scale means per day or limited pay area of income. Basically, contractual staffing agency stands for a short time period on the basis of written agreement between two or more persons after completing your job its automatically end over.
Contract recruiting is different than typical recruiting, which is normally performed for permanent positions. Unlike work that is permanent, a contract position implies that both the company and the prospective worker know the job is temporary. They both have something to gain from their momentary mutual exchange.
Staffing Contract as the name speaks is a method of recruiting required human resource on contract. This contract could take place between one company (mostly staffing firm) and an individual or between two companies.
Contract Staffing as the name speaks is a method of recruiting required human resource on contract. This contract could take place between one company (mostly staffing firm) and an individual or between two companies.
It is an intermediate staffing solution where a candidate is employed on a temporary basis with an intention to be absorbed on a permanent role after evaluating his/ her skills and capabilities for a specific period.
An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer".
Project Hire means a program administered by the Seattle Human Resources Director that provides job referrals to individuals who are at risk of layoff or who are on a reinstatement list.
Workers you hire for a specific project often work for a specific number of weeks or months until the project is finished. While some contractors work for an organization for many years, project-based workers usually have a limited time frame for their work. Contractors are not called employees.
Expat Recruitment Challenges for Companies: Any company thinks twice before hiring an expat for their international operations or services. Having an employee who will be fluent with different diverse ranges of an economy is a necessity to survive the competition.
An expatriate (often shortened to expat) is a person residing in a country other than their native country. However, the term 'expatriate' is also used for retirees and others who have chosen to live outside their native country.
Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries. Global sourcing often aims to exploit global efficiencies in the delivery of a product or service.
It is the process of sourcing goods and services from the international market across geopolitical boundaries. It aims to exploit global efficiencies such as lower cost skilled labor, cheaper raw materials and other economic factors like tax breaks and low trade tariffs.
Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries. Global sourcing often aims to exploit global efficiencies in the delivery of a product or service.
Temporary employees are hired directly by the company or they are obtained from a temporary staffing agency. If an agency provides a temporary employee, the employer pays a fee over and above the compensation collected by the employee.
The temp agency is responsible for paying the workers they send to a company. They charge the company a set amount per hour from which they take a percentage. The temp agency is also responsible for collecting taxes from the temporary worker's pay.
Manpower is a staffing agency. Often referred to as a “temp service," the company's primary business is providing a bridge between qualified workers and the businesses that require its services.
An employment situation where an employee is expected to remain in a position only for a certain period of time. Temporary employees may have the opportunity to achieve permanent employment status after the time period has lapsed, Temporary workers may also be referred to as seasonal employees or temps.
An INTERIM appointment is defined as a position filled on a temporary basis while a search is being conducted, or a department or unit reorganization is taking place.
Rather than taking on a purely advisory role, interim managers are managers responsible managing a particular business or project. They are accountable for results. Operating at or near board-level gives interim managers the authority and credibility to effect significant change or transition within a company.
Interim management is the temporary provision of management resources and skills. Interim management can be seen as the short-term assignment of a proven heavyweight interim executive manager to manage a period of transition, crisis or change within an organization.
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