Business readiness: Payroll Register

What is a Payroll Register?

A payroll register records information on the gross and net salaries paid to your employees for a specific time period. The records can be in the form of hard copies, electronic documents or a part of a payroll software program.

Inclusive of:

• Personal Details: Names, addresses, contact numbers, emergency contact details of your employees
• Employment Details: Employee IDs, dates of joining and employment status (e.g. permanent or temporary)
• Hours Worked: The number of hours in aggregate, including overtime and leave without pay
• Gross and Net Pay: Gross and net compensation provided to your employees, after accounting for deductions
• Deductions: Amount withheld from employees’ earnings for contribution to social security, donations, superannuation, unions and medical insurance
• Taxes: Amount deducted from employees’ earnings for federal, state, and local income taxes

Why is Payroll Registers important for business today?

A payroll register enables your company to:

• Provide accurate compensation to your employees by accounting for leaves, deductions and taxes
• Evaluate historical and current compensation of your employees and measures any variations
• Track the number of hours worked by each employee and assess the associated overtime costs
• Review and correct any irregularities or discrepancies in payroll details
• Calculate, record and reconcile employee entitlements in accordance with legislative requirements
• Contact family or relatives, in case of an emergency

Why is Payroll Registers important for an event tomorrow?

A payroll register is important for an event tomorrow, as it helps:

• Assess the distribution of employee costs amongst departments and individuals
• Forecast payroll expenses by leveraging historical trends
• Evaluate any variations in your employees’ compensation and analyze its impact on your financial performance
• Assess the tax compliance of your company related to your employees’ compensation

Pros of addressing Payroll Registers

• Timely and accurate salary payments to your employees
• Mitigation of litigation risk by complying with regulatory and legislative compensation and tax requirements
• Plan and manage your company’s cash flow effectively
• Improvement in the decision-making process related to promotion and appraisal of employees
• Accurately validate historic payment calculations of your employees

Cons of not addressing this topic

• Negative impact on the financial health of your company as employees’ compensation costs are not tracked
• Increased difficulty in retaining and managing talent
• Increased potential for filing inaccurate taxes on behalf of your employees

ALSO LEARN ABOUT

• Employee Agreements
• Employee Register
• Industrial Action
• Organization Chart
• HR Policies & Procedures
• Trade Unions