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Corporate payroll solutions – AHG IR

Corporate payroll solutions

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Posted On By Reyes Strauss

When an organization is small, it is possible to manually process the payroll for the employees. As the organization grows, usually more government regulations are applicable, especially the labor laws to ensure that the employees are paid on time. If the staff will make any mistake, the organization could face lawsuits and penalties. Hence growing businesses who are adding more employees should consider payroll solutions for corporates. The management who may not be familiar with the term will ask what are corporate payroll solutions. Some information on the scope of payroll solutions is discussed below.


Most people prefer a job because they are assured of a salary every month if they attend office regularly. So it is important for the employer to ensure that the employee is paid the compensation promised on time or it could lead to resentment and in some case lawsuits. Every company has it own compensation structure for the different employees based on the qualification, experience, attendance, contribution to the business and other factors. The payroll processing company will ensure that each employee is paid the compensation the management has decided, on time and is also eligible for other benefits like the bonus which may be declared periodically by the company management.

Based on the information provided by the human resources department for each employee, the payroll processor will calculate the monthly compensation paid to the employee. The salary of an employee usually has various components including the basic salary, travel allowance, housing allowance and other allowances, to reduce the taxes paid to the extent possible. Additionally the employer is also expected to deduct a specific percentage of the salary which is transferred to a provident fund. The employer is also expected to deduct taxes directly from the salary based on the salary amount and deposit the taxes with the government agencies.


The payroll processor usually has the latest software and experienced staff for payroll processing for different organizations. So based on the inputs which are provided by the client company, the payroll processor will also deduct the contributions to the various funds and the taxes which should be paid. Each employee will be provided a salary slip with the details of the compensation paid and the deductions which he can keep as records for reference in the future. The payroll processor will also update the compensation paid to the employees based on their client inputs to include salary increments as well as changes in government regulations.