What Does a Payroll Administrator Do: Duties and Responsibilities

Payroll administrators have a crucial role in the HR department. They calculate the wages of blue-collar workers and make sure they get paid on schedule. The administrator needs to be highly detail-oriented and know how to make complex calculations. They must also work with different timesheets, which plays a critical role for billing. Providing information and clearing payroll-related queries are other important duties. Manual approaches can be highly time consuming, especially for teams that are report and spread across regions. They are also error prone.

Payroll is an important aspect of attracting and retaining employees. This is crucial in today’s highly competitive market and helps your brand stay ahead of the game. Shifted to automated solutions can offer a zero-fuss payroll management experience. It helps to manage benefits, bonuses, hikes and taxes better. That’s the reason the HR payroll market is expected to reach $14.31 billion by the end of 2030, expanding at a CAGR of 9.2%. This article gives you a detailed overview of the basic responsibilities of a payroll admin and how software can bring in convenience, accuracy and time saving.

Setting Up a Salary Structure

A payroll manager has to design a wage template in accordance with worker designation, skill sets, current industry standards and basic allowances. But they might miss out on legal salary compliances across different Indian states leading to actions issued by the labour court. There are risks of inaccurate or outdated data that impairs employee satisfaction. Incorrect leave calculation is another problem which leads to incorrect pay.

A full-service HR payroll software can set up a daily or monthly salary structure template. This is done in 2 ways: salary based on CTC and salary based on gross salary. Pick either one and roll out the wages without hiccups. It is also possible to offer variable compensation to accommodate performance-based incentives. Salary revisions, missing payroll inputs, tax exemptions and compliance management across different states are other top functions that ease your workload.

Process Deductions

This must be done in sync with the local governing laws. Any mistakes here will cause your company to pay monetary fines. A few common voluntary deductions include healthcare premiums and retirement plan premiums. Involuntary premiums are TDS, ESIC and EPF. A bookkeeping error can result in over or under-payments. This could be a serious problem.
Consider leveraging the power of AI for payroll administrator duties. A software lets you automate and access statutory wage registers for PF, ESI, PT, TDS and LWF. It creates invoices for all contractual blue-collar employees along with providing complete visibility and transparency in wages. Know that the platform is configurable as per your needs.

Salary Calculation

Collecting and tracking employee data and issuing pay cheques is the basic duty of a payroll administrator. This must be done as per the company policies and procedures in collaboration with the HR department. They will have to map the salary based on the frontline workers’ job profile and location which can be cumbersome. It becomes more complex with manual logs and filings where the slightest slip may disturb the company’s pay cycle.

The good news is that automation can easily take over this human activity. A software can be integrated with attendance and leave tracking systems. It helps keep a check on employees’ work hours to calculate the gross amount they are owed after deductions. The HRs may also be able to preserve records to avoid discrepancies in future.

Payroll software can fully eliminate the need for a payroll administrator. The best can ensure simplified team payments without information leakages. You do not have to outsource your pay processes but simply install tailor-made software that can offer detailed breakdowns.