It is logical for people to seek monetary gains or reward for services rendered or tasks performed. No man is willing to work for free. Everyone wants to be able to put food on the table for his/her loved one. There have been massive changes in how people receive remuneration over the years.
There was a time in history when the only means of paying workers was through cash. There were quite a number of inaccuracies involved because of a lack of adequate records. As a matter of fact, some employees could work for several hours and get paid a little sum of money. This led to discontentment on the part of employees. Many of them would grumble and perform their tasks without much attention to details.
The emergence of firms that offer comprehensive payroll services has helped to reduce this. Under an ideal payroll system, nobody should earn less than the hours worked and nobody should earn more than the hours worked. This is a win-win situation for both employer and employee.
On the part of the employer, accountability is enhanced and nobody feels cheated. For the employee, there is always an assurance that salaries will be paid based on the amount agreed or contract signed. Companies that render payroll services help you take care of this aspect of running your company so that you can focus effectively on business growth.
They make sure salaries, wages and bonuses are paid as at when due. This payment is made by taking into cognizance how long the employee worked for within the stipulated period. It is the duration worked for that ultimately determines how much is due to each worker, based on the prevailing wage rate and minus deductions such as fines, tax, and levies. In a mathematical sense, the wage rate is multiplied by the hours worked and deductions are taken.
Usually, for a large business or an established company, a special unit/department can be established to oversee this job description. This special department will cater to the remuneration of all workers as well as their welfare. They make use of devices such as a time tracker to be able to predict accurately how long every worker served the company during the period for which payment is to be made.
If the employee is indebted to the firm, this will also be noted for deductions to be made. Usually, any department saddled with payroll services within an organization also has to take care of the staffing and manning needs of the firm. Hence, they advise management on individuals to be promoted or demoted based on an agreed performance rating and an established Key Performance Indicator (KPI).
If a firm is unable to establish or hire in-house personnel or team for its payroll services, this duty can be outsourced to an external firm. Within the country, there are many firms that render these services at an affordable and meaningful price. This mostly applies to young and emerging businesses. Follow our Facebook page.