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Organizations employing 50 or more people must be meticulous about payroll management and compliance. The salary slip is a vital part of the payroll process. It is proof of employment as well as payment made each month to each employee. It is also important for employers since it shows payments made and deductions.
HRMS salary slip
Large organizations must use HR software for efficient and fast payroll management. The payroll part of the software includes facility to generate HRMS salary slip or payslips in a defined format to suit the company’s operational model. A general salary slip includes the name of the payee, position held, and remuneration.
Detailed breakup shows several days worked, leave availed, extra time worked, benefits availed, and also deductions towards PF, EPF, ESI, and others such as professional tax and income tax. All these must be shown quite clearly to avoid any dispute with the employee and with any department.
It is a legal document showing net and gross salary and other particulars in pursuance of the Labour Act. By issuing salary slips the company complies with laws and ensures there are no future disputes or legal tangles.
Since the salary slip is an important document, employees are expected to preserve them for future records and needs. However, employees may lose such slips. In such cases, the HRMS software should have a facility to issue a duplicate slip or allow employees to view their salary slips online and take a printout after logging in securely. This facility reduces the load on HR staff and reduces delay in the issuance of the slip.
For employees
- If legal compliance is important from the employer’s perspective, then the salary slip is equally important for the employee. He can view at a glance his gross salary, deductions, and additions and be satisfied that he has been paid in full for the month. HRMS salary slips are generated by computers and are accurate.
- Daily wages or hourly workers can be fully satisfied that they have been paid in full.
- His HRMS Salary Slip also serves an important role when he approaches financial institutions for loans. Salaried employees are required to furnish payslips as proof of employment and proof of address as well as income. It could be the basis for determining eligibility for loans and a guarantee that the individual will be able to repay the loan.
- If the employee decides to seek employment elsewhere his future employers may ask to see his salary slip to satisfy themselves about the position he held and his wages.
- If he wishes to rent property the real estate agent may ask for his salary slip.
- If he is liable for income tax, he can use a payroll slip to claim deductions.
Enterprises work in different ways and may have people on permanent salary, people on temporary, contract labor, and hourly wage labor. Office staff may be considered for leave and other matters on a different basis compared to factory workers where different laws apply. The HRMS software should be configurable to allow for various heads and calculations according to employee type and role as well as the structure of pay and benefits.
The finest HRMS software usually has payroll and statutory compliance functions linked with pay slips and it can be ported to accounts packages too for seamless accounting. Since payroll and salary slips are so closely connected, it is worth investing in HRMS solutions that have all the features and can be easily customized to suit the employer’s business and various types of salary payment options.
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