Understanding The Step-by-step Process Of A Payroll

May 6, 2020

A business or organisation has to run with discipline and should progress over the years. But this can only happen when the organisation fulfils its policies and manages its reputation well. This is one of the keen jobs of the HR department, where they will cater to the employees’ needs, ensuring they are being benefited well enough.

The first thing a company should do is manage the documents that have been collected from the employees. This will avoid any further confusion arising in the future. In the HR and payroll department, the HR resources will create copies of your offer letter, with all the required paperwork and then will pass it on to the payroll department. After this particular process has been verified, the information of the employees will be recorded and the payroll period will be calculated accordingly. The organisation should also make sure that all these pieces of information are kept extremely confidential and revealed only when required. In a nutshell HR and payroll process refers to the standard practices on how the employees are paid based on their working hours, overtime and holidays.

Calculate The Time

The first step of the process is to make sure that you collect the time worked by the employee to add that in the pay period. There are different ways of keeping track of the time or the days worked by the employees. To keep up a systemised schedule, people often maintain a timesheet or some offices use an HR and payroll software to calculate the time and the pay period of the employees.

When this process is done in a standard way, then it will usually take a few minutes to calculate the details of each employee, depending upon the time they’ve worked over the week or month. If the company uses a particular software like the HR and payroll software to make this process simpler and easier, it will take only a while unlike getting it done manually. It is best to start completing the calculation before their payday so that it’s all optimized and up-to-date.

Earnings & Deductions

When the employees get paid, the organisation should be sure that their rewards and deductions are also taken into consideration. Although there are an HR and payroll software to update the system electronically, ensure the right amount of days and overtime are calculated accordingly. Some employees tend to work over their scheduled time, and some of them will take off from the week which was counted as a working period. These should be considered and paid accordingly. The deductions should be made if the employees do not have a genuine reason like a medical emergency.

Payment Options

In most organisations, the employees are paid via check. But there are other payment options as well, like depositing directly, via debit card or even cash. These organisations have to stick to the particular law as per the state based on the payment methods.


While calculating the final payment with all the deductions and the rewards, the taxes should also be calculated. The state will have a particular law based on the tax system which should be informed to the employee beforehand. The final payment is then made after reducing the tax fee.

These are some of the basic steps of how payroll works in every organisation or business. Give us a call if you want to inquire more about the Emirates HR and Payroll software.