While organisations try their best to have the best payroll system in place, employees consider payroll as an important way of staying motivated on the job. Employees find payroll important based on these reasons.
Financial Relief
Beyond having a job that is secure to an extent, payroll still has a large function to play in determining whether an employee is financially stable or not. In an inflationary economy like Nigeria, where the cost of goods and living has skyrocketed, employees find financial relief when a proper system that ensures accurate payment, and one that is timely is in place.
This is important because employees rely on payroll for the payment of their wages and salary; health insurance and retirement plans; and tax obligations.
Employee Career Advancement
Another means through which employees deem payroll important is the realisation of career advancement. Payroll fosters career advancement by verifying work experience, providing proof of income for loans or credit, facilitating professional certifications, and documenting promotions and raises.
Legal & Financial Security
We all like to have the law on our side! When a proper payroll system exists, not only are employees protected, they also enjoy both legal and financial security. The existence of legal and financial security is to protect employees from wage theft; employment disputes; incorrect benefits deductions; non-compliance penalties; and tax discrepancies.
Record Keeping & Compliance with Laws and Regulations
This is an aspect that ensures that the laws and regulations guiding tax and compensation are adhered to. It also includes the exact representation of pensions, including documentation of salary, bonuses, and deductions.
Essentially, it maintains records.
Safeguarding of Employees Rights and Benefits
Employees enjoy the safeguarding of their rights and benefits, such as: the accurate interpretation of earnings and deductions; adherence to minimum wage and overtime compliance; and entitlement to benefits.
What is Fringe in Payroll?
While payroll oversees the entire process of managing employees compensation, benefits, and taxes, fringe in payroll is activated as an additional boost.Fringe in payroll is the additional compensation that an employee is provided with by an organisation.
The compensation is beyond what an employee collects as salary; it serves the purpose of providing an enhanced compensation package which eventually improves job satisfaction and retention.
Examples of fringe in payroll include stock options; education assistance; bonuses; vacation; retirement plans; sick leave; health insurance; life insurance, and so on. What Does Net Payroll Mean?
Net payroll simply refers to the compensation that is left after deductions, taxes, and withholdings. It take-home pay because it is the actual money received.
Net payroll is calculated as Net payroll equals Gross pay minus taxes plus deductions plus withholdings. Net payroll = Gross pay – (taxes + deductions + withholdings
When a net payroll is accurate, employees need not worry about getting their deserved compensation, rather they are focused on how to do their job properly and boost productivity.
In the same vein, organisations benefit from streamlined payroll processing, adherence to relevant regulations, as well as reduced errors.
