Some employees might think that making pay slips and delivering information about the salary is the only job for payroll department but that’s not true. Payroll department is much more than what it is mostly considered by the employees in a company. By using all the means and softwares payroll departments are constantly updating the financial records of the employees in a company and thus they are in the best position to give advice to the employees on their financial matters as well. The best thing is that the payroll department can provide good advice about future planning on current finances.
Looking at the pay slip an employee can get a good idea of what’s going on with his/her finances. There are taxes that are being deducted from a person’s salary on permanent basis by the employer. There are certain deductions that can be controlled by the employee and others that cannot be controlled. Employees can choose certain deductions or increase the amount of already existing deductions. The income tax taken out of the salaries can also be used by employees for their own benefit through tax return. All these things can be best explained by the payroll department.
One important point that must be understood by the modern payroll departments is the use of modern softwares. These softwares can be installed on the computer or used in the form of SaaS (software as a service) to keep the records of the employees working in the company. These softwares can create complete reports for all employees and these reports can be sent to them for their records as well. At the end of the year a complete and detailed record can be sent to the employees so they know where they are standing financially and what they can do with their money.
The taxable benefits can also be evaluated by the payroll staff and advice can be given to the employees about its use. Another great way for payroll department is to advise the employees about their bonuses and benefits. For instance, in a debt consolidation or a credit card company, there are always agents who work to bring in potential clients and make sales bonuses. For them, payroll department keeps a track of all financial concerns, so the employees can always know how much they made in addition to their basic salaries. From the reports generated for them by payroll department, they also get to know how they can benefit from the bonuses and commissions by consulting with the people in the payroll department. The employees must understand that all the deductions made from their salaries are for their own benefit and the payroll department should take charge and explain how employees can benefit from them.