How often is payroll done?
Generally speaking, payroll is done weekly, fortnightly or monthly. However, in India, payroll is mostly processed once a month. In many other countries, payroll is processed weekly.
Coming back to India, some companies start processing around the last week of the month, so that employees will be paid by end of the month. This is normally for companies who are in services sector (like software and MNCs).
Companies in the manufacturing sector start processing around 1st of the month and pay by 5th or 7th of the next month.
For example, payroll for the April month is processed by some companies around 25th of April so that employees are paid by 30th of April. Others may process by 1st of May and pay by 5th or 7th of May. Please note that in either case, this is called as "April Payroll".
What are the steps involved in a typical payroll processing every month?#
Payroll processing involves the following broad steps:
1. Update data of new Joinees
2. Update data of Resigned employees
3. Update Salary increment data
4. Update changes in employee information
5. Update Loss of Pay or Working Days
6. Process Payroll
7. Generate Salary Register
8. Do Payroll Reconciliation
9. Distribute Salary to employees
10. Distribute Payslips
11. Update Payroll data in accounting software
12. Generate PF, PT, ESI and IT reports.
13. Make payments to PF, PT, ESI and IT departments.
14. Generate other MIS reports