Being a part of a company, we must have seen the salary calculation carried out under packed schedules, many-a-times at the peak day or just at the verge of payout deadline. And with many components in consideration, a small delay in receiving one detail may end up delaying the whole process. Squeezing payroll in the hurry of gathering all the feeds should not be prevailing. This irregularity can be reduced by creating and sticking to the payroll calendar.
Moreover, as payroll processing is a recurring task every month, delaying becomes a standard norm in a small or larger business. But for a growing company, this is neither fruitful for the business nor for enhancing the employees’ productivity. Delaying payroll cannot be suitable for your employees’ satisfaction, and as a small business, you may not want to drive them away. Maintaining a payroll calendar is thus an effective way to weed out the glitch in the system. But sometimes, in the hustle of various tasks, HR may find it hard to follow. But with the routine steps to stick to the calendar, the payroll can be quicker than ever.
Payroll Calendar shows the detailed list of the pay periods the HR has filled up. It outlines the start and end date of the pay periods and the actual pay date to keep you updated on the payroll cycle. The calendar highlights the time when one needs to start the process to reduce the time and hurry of running payout.
Moreover, the employer can use this payroll calendar for reminders to gather the timesheet data and payment disbursement. These calendars depend on bank holidays, deposit processing times, number of employees, calculation methods, and payment frequency.
Compared with the ordinary people’s calendar, the Pay calendar would look different, showing colored days for a particular process to be done on that day.
With diversified employment categories, the volume and type of salary payout also change, which employers need to remember. An employee doesn’t appreciate their salary processing on or after the deadline. It highlights the more than other better approaches that the company does.
Moreover, the payroll process itself is time-consuming for those who don’t use automated software. The employer invests considerable time to collect various information like payroll components, bank holidays, tax funds, and other statutory constituents.
These steps take a lot of time to get accomplished. Meanwhile, during the process employer may forget some information to collect, thus delivering the wrong payroll. This can lead to wage violations that may spark some illegal complications for the company.
To reduce this complication and offer 100% statutory payment, the use of a payroll calendar has increased. Though being useful, the employer may forget to stick to the calendar during the early days. But with proper steps designed and taken into consideration, the employer can achieve the targets precisely.
Getting caught in the payroll complications is normal. About 54% of employers believe that their current payroll process can be improved. (source)
One reason for not delivering accurate payroll can be glitches in the existing methods. The payroll calendar comes to set up the schedules of the company’s salary frequency and the dates when to start the process to accomplish the same without missing the deadlines. Sticking to that particular calendar again is essential.
Pay frequency is the time and date when the employer pays an employee. It may change with a change in the employment type of employees. Pay frequency describes how repeatedly you pay the employees with the knowledge of the beginning and the ending dates. Based on the choice of paying employees, the pay frequency divides into few main options:
The company may need to use different methods for its employees based on the job type. Thus after selecting the pay frequency of the workforce, the information is to be updated to the payroll calendar with the description of the pay periods. The pay period starts from the next immediate day of the payout.
It is true that with holidays in the month, there may be gaps prevailing in between the ongoing processes. It could happen that the payday of the month falls on Sunday, and thus the employer needs to be ready priorly with all the requirements.
Moreover, with the involvement of the bank at the time of salary transfer, the employer should mark the bank holidays too to avoid interruption in the process.
Assume that all your payment process is ready to disburse with just a tap, but you forgot that the next day is a bank holiday, and you are left with zero buffer. Bewildered! There could be you in that position, but with the organized payroll calendar, no holidays can stop you from paying out to the employees on a determined day.
Payroll doesn’t only include the total amount of wages an employee recipes for the work done during the corresponding pay period. The employer needs to consider attendance and leave management details, overtime implications, tax withholding, and other statutory deductions.
All this information has a different time to get collected, and thus remembering that time and organizing the information is essential for the employers. Therefore, with a proper listing of the time and date, a payroll calendar can be used to take away the burden from the employer.
For example, set up a time for:
Complete setting up the information needed time, the employer can now process the payroll errorlessly.
After setting up the pay periods according to the employment types, the employer should inform their employees about the process, and when an employee can receive their payment. Share with them the time of submitting the timesheet details for further payroll process.
In case of any delay due to holidays or other genuine reasons, inform the employees before to avoid the charges of wage violations. Generally, the employees receive these details at the start of the year to avoid confusion at the beginning only.
With many ongoing processes, people find it challenging to manage the same at their accurate time. Even when the use of alarms has increased to wake up in the morning, it is no surprise that the employer needs reminders to perform the payroll on time accurately.
Whether it is cell-phone alarms or scheduled reminders of the software, if one knows the need, setting up the same can be fruitful for future processes.
For instance, you may set up an alarm about starting to gather the payroll data, collect the timesheet details from the employee, or notify the bank for the salary transfer. The payout date is actually the high time for HR to accomplish. Timely reminders can actually become a boon for them.
Indeed, to stick to the calendar and processing the payment tasks can be made more straightforward and streamlined with payroll solution. Not that the employer gets scheduled notification but gathering all the components and accomplishing the payroll can save them valuable time.
Once synced with the calendar, the software notifies about the holidays, the pay periods, and the other integrated facilities, which may consume time if treated manually. According to studies, integrating the system with the timekeeping payroll reduces the mistakes by ? compared to those who use simple automation. (source)
Though a small business may not be able to buy advanced software, using the manual methods precisely can be much more beneficial. Not that paying the employees accurately, but the payroll calendar helps fulfill all the liabilities at the right time without delaying the deadline. Moreover, having an efficient payout method can develop encouragement in employees, eventually making them stick to the organization for a longer time.