Your Payroll, Our Priority Accuracy and Satisfaction.

Payroll refers to the total amount of money that a company pays to its employees for their work during a specific period of time, typically on a regular basis, such as weekly, bi-weekly, or monthly. This can also refer to the department within a company responsible for managing employee compensation and benefits, including calculating salaries and wages, deducting taxes and other withholdings, and distributing paychecks or electronic transfers. It is an essential function of any organization and is critical for ensuring that employees are compensated accurately and on time, while also complying with relevant laws and regulations related to taxation, social security, and other labor laws.

Kredily Payroll is different from other payroll software in its ability to offer a seamless, hassle-free payroll experience and that too without any cost. 

Payroll services costs vary depending on several factors. However, using payroll services has consistently been proven economical or cost-effective over the long term. However, Kredily’s HR & Payroll software is free, and any organisation can handle payroll functions without paying.

There are different apps and software a company uses for processing payroll. The market is full of such apps though they all have different price ranges for different features. But you can use Kredily HR and Payroll software to process your payroll without paying.

The formulas used for payroll calculations may vary depending on factors like tax laws and company policies. However, common formulas include:

a) Gross Pay = Total hours worked × Hourly rate or Salary per pay period

b) Net Pay = Gross Pay − (Deductions + Taxes)

c) Overtime Pay = Overtime hours × Overtime rate

d) Deductions = Tax withholdings + Employee benefits contributions

To put employees on payroll, follow these general steps:

a) Collect necessary employee information (e.g., W-4 forms, direct deposit details).

b) Determine the employee’s pay rate and salary basis (hourly, salaried).

c) Set up the employee in the payroll system, including tax withholdings and benefit deductions.

d) Track employee attendance, hours worked, and any applicable overtime.

e) Process payroll according to the established pay schedule, ensuring accurate calculations.

f) Distribute paychecks or arrange for direct deposit.

g) Maintain proper payroll records and comply with legal requirements.

Some valuable payroll terms to know include:

a) Gross Pay: The total amount earned by an employee before any deductions.

b) Net Pay: The amount an employee receives after deductions (taxes, benefits, etc.).

c) Withholdings: Deductions from an employee’s gross pay, such as taxes and benefits.

d) Pay Period: The timeframe for which employee wages are calculated and paid (weekly, biweekly, and monthly).

e) Direct Deposit: Electronically transferring employee wages directly to their bank accounts.

f) Form 16: A tax form that summarizes an employee’s earnings and tax withholdings for a given year.

Some common employer-paid benefits include:

a) Holidays: Paid time off for designated public holidays.

b) Vacation: Paid time off granted to employees for personal use or leisure.

c) Sick Days: Paid time off provided to employees who are ill or require medical care.

d) Insurance: Health, dental, vision, or life insurance coverage provided by the employer.

e) Retirement Plans: Employer-sponsored plans (e.g., pension) to help employees save for retirement.

f) Profit Sharing Plan: A program where a portion of a company’s profits is distributed to employees.

Common mistakes that can occur during the payroll process include:

a) Incorrect data entry, leading to inaccurate calculations.

b) Failing to update employee records promptly (e.g., salary changes, tax withholdings).

c) Missing payroll deadlines, resulting in delayed or incorrect payments.

d) Mishandling employee benefits and deductions, leading to errors in net pay.

e) Non-compliance with tax laws and regulations, resulting in penalties.

When selecting a payroll service software, consider factors such as:

a) User-friendly interface and ease of use.

b) Integration capabilities with other HR or accounting systems.

c) Security measures to protect sensitive employee data.

d) Customization options to fit your specific payroll needs.

e) Scalability to accommodate your organization’s growth.

f) Customer support and reliability of the software provider.

 Outsourcing payroll may be a suitable option when:

a) Your organization lacks the necessary expertise or resources to handle payroll internally.

b) You want to reduce the administrative burden and focus on core business activities.

c) You need access to specialized payroll knowledge and stay updated with changing regulations.

d) You want to improve accuracy and ensure compliance with payroll laws.

e) You aim to leverage the technology and efficiency offered by professional payroll service providers.