CONTRACTUAL ASPECTS OF PAYROLL ADMINISTRATION

Contractual Aspects Of Payroll Administration

Contractual Aspects Of Payroll Administration

Introduction

Payroll administration encompasses all the tasks involved in paying an organization's employees. It typically involves keeping track of hours worked and ensuring that employees receive the appropriate amount of pay. It also includes calculating taxes and social security, as well as ensuring that they are properly withheld and processed. Depending on the company in question, a full range of other deductions may be calculated, withheld, and processed as part of payroll administration. Additionally, the processing of contractor payments may fall under the umbrella of payroll administration.

This report reviews the existing administration processes in relation to the issuing of a contract of employment to ensure that all aspect of legislative requirements, particularly Asylum and Immigration Act are covered.

A contract of employment is an agreement between employer and employee in the basis of the employment relationship. A contract is made when an offer of employment is accepted. Most employment contracts do not need to be writing to be legally valid, but writing down the terms of the contract will cut down on disagreement late on. The Employment Act 1996 requires employers to provide employees with a written statement of the main terms and conditions as part of the induction programme for new starters. This gives employees a chance to ask questions and for the employer to test understanding of employment contract. Employment contract include the following:

Employer and employee name

The date and when the employment will start

Pay and the interval at which employee are paid include hours of work and holiday entitlement.

Company sick leave and statutory leave

Employees and employer's entitlement to notice period of termination of employment

Job title and brief job description

The period in which employment is expected to continue of or if it is for fixed term the date when it will end

The place of work whether employee are required to work more the one location and indication of this and company address.

A note giving certain details of disciplinary and grievance procedures and stating whether or not a pensions contracting out certificate is in force for employment.

All employees are entitled to an individual written pay statement at or before the pay day. The statement must show gross pay and net pay with the amount and reasons for all variable deductions. Fixed deductions are shown on the statement with details amount and reasons. The statement is given to employee before pay day or just after pay day.

Payroll is defined as a method of administrating employees' salaries in the organizations. The process consists of calculation of salaries and tax deductions of the employees, administrating the retirement benefits and disbursements of salaries to employees. It can also be called as an accounts activity which undertakes the salary administration of employees in the organization. Administrating the employees' salaries is not an easy task, the HR and accounts department work together to calculate and disburse the salary to the employees. Thus, payroll management can be further subdivided into two sub processes, ...