Take one number and add others to it. Subtract and deduct some more numbers from it. Then deduct some taxes to arrive at the net paycheck value. Looks pretty simple, doesn’t it? In reality, payroll is much more than meets the eye! Many calculations, rules, and regulations are involved in arriving at a final figure.
Payroll processing can get even more complex in small and medium enterprises. In order to manage payroll effectively, payroll managers of these businesses have to contend with constraints related to resources and technology. But they can quell these challenges with the right set of skill sets.
Here are 7 core skills for overcoming payroll hurdles in SMEs:
An Eye for Detail
Indian payroll managers handle a large volume of data. Therefore, a high level of accuracy and attention to detail are required for tasks like cutting precise paychecks and ensuring accurate tax filing.
Knowledge of Payroll Laws
Organizations have to abide by multiple state and central laws. Hence, payroll managers must have the required understanding of the same to avoid penalties. This know-how helps ensure compliance related to tax withholding, reporting requirements, and more.
Time & Project Management Skills
Payroll is a periodic process. Several tasks have to be executed every month or fortnight, depending on the industry. So, a payroll manager must be able to prioritize tasks and get speedy approvals to meet deadlines. All these processes cannot happen without meticulous planning and decision-making.
Problem-Solving Skills
Discrepancies and employee queries related to salaries, taxes, and benefits are not uncommon in the payroll department. But payroll managers can tackle these issues with their problem-solving skills. Stated simply, they should always be in a position to find a solution to every problem!
Ethical Conduct
Payroll managers have to handle highly sensitive financial data and the personal information of employees. So, they must demonstrate a high level of integrity and ethical conduct. This is critical since they often have informal conversations with employees.
Effective Communication
In one scenario, an employee might post the same query multiple times due to a lack of understanding. In another, multiple employees might post the same query. Payroll managers should curb the urge to behave rudely. They must adopt a customer-centric approach and communicate thoughtfully and empathetically.
Technological Proficiency
Nowadays, even the smallest of companies use a tool to handle their payroll process. Proficiency in payroll software and other related technologies is essential for efficient payroll processing. This is needed for maintaining/generating accurate reports, responding to queries from seniors, and providing inputs for planning and growth.
Conclusion
The pointers in this blog post are drawn from greytHR’s conversation (Parichay webinar) with Sanjay Mehta, Managing Partner, iknowate Consulting LLP.
A seasoned chartered accountant (CA), he not only shared the essential skills for efficient payroll management in Indian SMEs. But he also explored ways to navigate common payroll limitations stemming from financial and manpower constraints.
There's more: He shared strategies for cost-effective payroll management and training in the payroll process, besides the benefits of bespoke payroll systems, and more.
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