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A Basic Guide to the Payroll Process in Human Resources


Enable Group | Jun 20, 2022

For Employers ● 3 min read

Payroll is one of the most crucial components of any business. It reflects the company’s reputation and financial stability and affects the morale and satisfaction of the employees. Because these employees rely on their salaries, late payment or errors can create an absence of trust.

As a result, it is the responsibility of the human resource (HR) department to ensure that the payroll process is done right. If you do not have in-house HR, you can outsource HR services in Singapore for your business’s HR functions and payroll needs. Continue reading to discover more about the payroll process and how it is typically carried out.

What is payroll?

The term “payroll” basically refers to the list of employees paid by the business or company. It can also mean the overall amount of money an employer pays to the employees. On the other hand, when talking about the “payroll process,” it usually refers to how your HR manages all the steps of paying your employees, from gathering staff information to sending them their paychecks.

In other words, payroll processing is the act of managing staff payments. It is a procedure traditionally carried out at the end of a payroll period, which can be weekly, bi-weekly, semi-monthly, or monthly. Because the payroll process is commonly extensive and time-consuming, many companies use HRMS and payroll software to streamline the entire procedure and make it easier for the employees to receive their salaries. 

What is usually involved in the payroll process? 

As mentioned earlier, the payroll process is usually an extensive process involving many steps. These stages may differ from one company to the next. Nonetheless, some steps in the payroll process are quite similar across businesses. They are as follows:

  • Collection of time records

Collecting employee hours worked to determine how much the company should pay them is one of the most important procedures in calculating and delivering payroll. Paper cards or computerised timesheets are commonly used in businesses to keep track of time. Hourly staff needs to have their time, overtime, and other non-regular hours calculated. For the non-hourly workers, the HR team often needs to determine their salary pay and any PTO time that must be deducted.

  • Calculation of pay and deductions 

Each employee’s information must be calculated in a business, including the hours worked, the salary owed to them, and any necessary deductions. Calculating these deductions and the pay is another crucial component of the payroll process. To maintain the company’s compliance with statutory laws, deductions such as taxes, benefits, and insurance must be deducted out of every employee’s paycheck.

  • Payment of employees

It is now the duty of the employer to successfully pay their employees through the HR team after the work hours, pay rate, deductions, and all other aspects have been identified and accounted for. This is perhaps the most crucial part of the payroll process, as it ensures the satisfaction of the employees and the reputation of the company. Payment can be made through any method the state or company allows, but common methods are direct deposit and physical check.


Payroll processing is an essential component of business that must be managed with attention and accuracy. There is a slew of benefits to appropriately executing the payroll procedure. This involves safeguarding your firm against labour or payroll compliance issues, and enhancing your company’s employee retention as a well-paid staff is usually a happy staff. Ultimately, businesses must prioritise payroll to succeed.

Consider investing in premium HR software, such as Unit4 Prosoft, for faster and more accurate payroll processing for your company. This software includes various features and capabilities, such as regional payroll support, transaction flexibility, and reduced wait times to ensure your employees are paid on time. As an HR consultancy agency, Enable Consulting is a reputable company to partner with for all your HR needs. Contact us today to discuss your requirements.

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