Welcome to Department of HR - Payroll Services

 Chapter - III

Payroll Manager

Name of Digital Publisher

Dr. Hari’s Learning Centre

https://sites.google.com/view/hospitalhr/home

 Purpose

“Hospital HR is a Virtual HR Platform designed to Serve All Basic HR needs of Health Care Organisations”

Target Readers

Payroll Team || Compensation Experts || HR Team || Trainers of Hospitals || Management Team

Dedication

“This book is dedicated to all Health Care Industries”

o   Clinics

o   Hospitals

o   Blood Banks 

o   Nursing Homes

o   Wellness Centres 

o   Allopathic Clinic

o   Day Care Centres

o   AYUSH Hospitals

o   Diagnostic Centres

o   Healthcare Centres

o   Medical Laboratory 

o   Panchakarma Clinics

o   Blood Storage Centres

o   Eye Care Organisation

o   Healthcare Employees

o   Dental Institutions/ Hospitals 

o   Primary Health Centres - (PHC)

o   Medical Imaging Services - (MIS)

o   Clinical Trial - (Ethics Committee)

o   Community Health Centre - (CHC)

o   Nursing Excellence – Nursing Centres

o   Small Health Care Organisations - (SHCO)

o   Medical Value Travel Facilitator - (MVTF)

o   Staffing and Recruiting agencies of Health Care and for whom-so-ever it may concern...

All are Welcome

Come join us in our mission of building this virtual Hospital HR for Indian Nation.

This is one of those rare opportunities where your work will help truly to enrich others.

If you have a passion for solving problems in healthcare, this role & space is only for you.

-By

Dr. Hari Prasad. N, M.Com, MBA, Ph.D

Payroll Terminologies

Payroll

Payroll is a list of employees who is paid by the company. Payroll also refers to the total amount of money employer pays to the employees.

Pay

The value of earnings paid by employer to employee.

Net Pay 

Net Pay = Gross Income - Gross Deduction

Gross Income or Salary 

Gross Income or Salary = All types of regular income + Allowances + Any one-time payment or Benefit

Gross Deduction

Gross Deduction = All types of regular deductions + Statutory deductions + Any one-time deductions or fines

Wage Slip

Wage Slip: a small piece of paper with a printed record of a person's wages

Earnings

Earnings: The Wage, Salary or value of money earned during a specific period

Salary Fitment

Salary Fitment: Fixing Pay & Plotting Earnings and deductions of an employee during the work cycle

Salary Statements

Salary Statements: Combination and permutation of various earnings, deductions and legal compliance calculations that provide Net Salary as outcomes

Payroll Muster

Payroll Muster: A muster roll register is an employment attendance register, pertaining to a specific work site and a specific period (for example- two weeks). It is also used as an acknowledgment, to claim funds from the concerned officer for the payment of wages.

Ex Gratia

An Ex Gratia payment is one that is given as a favour or gift and not because it is legally necessary.

Payroll Basics

Payroll

Payroll is a list of employees who is paid by the company. Payroll also refers to the total amount of money employer pays to the employees.

HRM: Human Resources Management

HR Office acts as a Police Station to Safe guard and Secure the Employees and organisation from Internal and External Disturbances’.

“Whereas Payroll Manager acts as Writer sitting in a police station”

Designations - Roles & Seniority levels of HR- Payroll

 · Chief Human Resources Officer - CHRO

· Chief Compensation Officer

o   Payroll Manager

§  Payroll Executive

§  Statutory & Compliance Executive

· Attendance & Time Office  Assistant

· Payroll Assistant

· Intern’s

HR Payroll - Roles || Responsibilities || Description || Specification || Functions

Overall supervision of the HR department and Day-to-Day activities performed by Team HR has been enclosed with at most consciousnesses to ensure real corporate learning’s are shared among readers.

Top Tasks of Payroll team

Payroll& Compensation Management || Employee Counselling and Guidance || Grievance Management

Payroll Processor's - Employment Type

Full-time || Part-time || Consultants || Out Sourced

Job Functions

Top Tasks of Payroll Department

·         Salary Credit’s

·         Fitment Fixation

·         Issuing Tax Forms

·         Calculating Overtime

·         Emoluments & Benefits

·         Issue Leave and Policies

·         Attendance Management

·         New Hires’ Pay Plan Demo

·         Statutory & labor, welfare activities

·         Opening New Bank accounts to new hires

·         Depositing dues like TDS, PF, ESI, PT, LWF etc. With appropriate authorities and filing returns

Exclusive Payroll 

* Set Pay Policy

* Define Pay Components

* Collect Payroll Inputs

* Attendance Compilation

* Gross & Net Salary Calculation

* Distribute Payslips

* Depositing dues like TDS, PF, ESI, PT, LWF etc. 

* Payroll MIS

Attendance Management

Attendance Process & Tips

*       Shift Management

*       Mandatory Deductions ESI, PF, PT, LWF

*       Bio-metric System - Is very much recommended

*       Break Shift Techniques for Small-scale operations

*       Labour welfare fund - Dec salary deduction - Pay on Jan

*       Cancelling PF (or) Voluntary PF - As per employees request 

*       Salary calculation to be made as per Number of working Hours

*       8 Hrs working Hrs mandate to get one day pay (In Time to Out Time)

*       In time, Out time, Late, Miss Punch, Leave Approval, Over time plays key role

*       Minimum Wages Act - Yearly Revision of Basic + DA - Every year April release

Types of Attendances

Techniques of Attendance Closure During Payroll Process 

Present - Duty

* A – Absent - Absent means no salary

* OD – On Duty - ONE day salary to be paid

* ODT – On Duty Travel - ONE-day salary to be paid

* P – Present - Present means One-Day salary – (8Hrs Work)

* LP – Late Present - Late Present means One Day salary – (8Hrs Work) – Trying to know who is late comers and when.

* NE – Not Eligible - Not eligible – One Day Salary - (8Hrs Work) – If worked on Special Working Days – No OT only salary

Leave Management

* LOP – Loss of Pay

* ML - Maternity Leave

* SL – Sick Leave – SL one day Salary to be paid

* CL – Casual Leave - CL One Day Paid Salary – Reduce CL from Leave Bank

* EL – Earned Leave - EL One Day Paid Salary – Reduce EL from Leave Bank -

* HCOM – Holiday Combo Off - HCOM One Day Salary to be paid – leave instead of Payment

* PL – Paid Leave-- PL means One Day Paid Salary – Add one EL on Leave Bank under EL Utilized column

* ProL - Probationary Leave - One Day Leave with Pay

* LLOP – Leave on Loss of Pay - One Day Leave - without Pay

Holiday Management

* FH – Festival Holiday-- FH one Day Salary to be paid

* NH – National Holiday - NH one Day Salary to be paid

* WO - W off – Week Off - WO one Day Salary to be paid

* CO – Compensatory Off - CO one Day Salary to be paid

* RH –Restricted Holiday -- RH means one day Salary to be paid

* NO - N off – Night Off - N Off means One Day Paid Salary – This is like Sunday leave given for nurses

Work - Services Management

* OT – Over Time

* WE – Week End – Week End Means Working on Holiday – (Get 2 Days Pay) & (NO Compensatory Off)

* Wed – Wedding Leave – (This is Leave on Loss of Pay) – (can be used post exhaustion of leaves)

Pay & Salary – Income to Employees

·         HRA

·         Bonus

·         Incentive

·         Net Salary

·         Commission

·         Basic Salary

·         Gross Salary

·         Leave Wages

·         Arrears Salary

·         Consultant Fee

·         Referral Bonus

·         Salary Advance

·         Over Time Wages

·         DA - Dearness Allowance

·         Annual CTC - Cost to the Company

·         Monthly CTC - Cost to the Company

·         Wages - Daily wages & Weekly wages

Pay & Statutory – Key Words

•       Late

•       Bonus

•       Payroll

•       Over Time

•       Time Office

•       Leave Policies

•       Labour Welfare Fund

•       Statutory Compliance

•       Preparing Payroll MIS

•       Preparing pay budgets

•       Ensure legal compliance

•       Attendance Management

•       Pay plan and benefits program

•       Conducting periodic pay surveys

•       Monitoring and scheduling individual pay actions

•       Maintains all shift changes and updates the duty roster

•       Recommending, planning, and implementing pay structure revisions

•       Follow up of confirmation records statutory obligations - PF, ESIC, taxes, gratuity, LTA etc,

Perks & Emoluments Distributed at Hospitals

Ø Perks

Ø Job offer

Ø Compensation

Ø Salary Advance

Ø Uniform | Canteen

Ø Formal Dress code

Ø Informal dress code

Ø Flexible work hours

Ø Regular Pay Intervals

Ø Coupons & Gift Vouchers

Ø Letter of recommendation

Ø Certificate of Appreciation

Ø Festival Gifts and Benefits

Ø 6 days a week working pattern

Top must have headings in Wage Slip & Payroll Muster

Earnings

·         Basic salary

·         DA - Dearness Allowance

·         Basic + DA

·         HRA

·         OT Wages

·         Leave Wages

·         Other Allowances

·         Additional Heads

o   Bonus

o   Incentives

o   Arrears Salary

o   Salary Advance

·         Here Arrives- Outcome i.e. Gross Salary

·         Add Employers contribution of PF, ESI and LWF – here comes CTC

·         Monthly CTC * 12 months = Annual CTC

Deduction

·         PF - Provident Fund

·         ESIC - Employees State Insurance Corporation

·         PT - Professional Tax

·         Other Deductions

·         Additional Heads

o   Fine

o   Hostel fees

o   Salary Advance

o   Uniform - (Extra)

o   IT - Income Tax

o   LWF - Labour Welfare Fund

o   TDS – Tax Deduction at Source

·         Here Arrives- Outcome i.e. Net Salary

Types of MIS – What Employer Expects

Ø  HR MIS

Ø  Training - MIS

Ø  Payroll - MIS

Sub Branches of MIS Reports

ü  Exit

ü  Probation

ü  New joiners

ü  Notice Period

ü  Late Deduction

ü  Attrition Report

ü  PF Consolidation

ü  Dept. Wise Report

ü  ESI Consolidation

ü  Employee Strength

ü  Expenses Prediction

ü  All other Deductions

ü  Man Power Planning

ü  Resigned Employee Database

ü  Designation wise Expenses MIS

ü  Clinical & Non clinical expenses MIS

ü  Salary Statement - should get MIS out

ü  Comparative Study - Past Present & Future

ü  HR Dept Expenses - MIS (tea, coffee, travel) etc

MIS - Annual Report

Ø Skill Matrix

Ø Leave Report

Ø Attrition Rate

Ø Approximate expenses

Ø HR Budget - (its bifurcations)

Ø Exit Interview Reports - VRS

Ø Who has to be terminated next?

Ø What is the income per employee?

Ø Man power Planning - As per .Dept

Ø HR Rounds - Observational Analysis

Ø Support needed - Problematic persons

Ø Latecomer’s salary deduction - income

Ø New Joiners, New Candidate - Feedback

Ø Tariff - Improvement as per income Increasing

Ø Action Plan - Future Plan for next financial year

Ø Employee Placement - Location and person match

Ø Employee Experience and Employee Delight Report

Ø Meeting - Quarterly, Half yearly, Annually HR Meet

Ø Employee Motivation - Plans & Programs - Leads to Involvement increase

Various Committees and Safe Guarders of Payroll Services – (Special Reference to HR)

*      HR Committee

*      Executive Committee

*      Management Committee

*      Quality Council Committee

*      Centralized Finance & Budgeting Committee

*      Grievance Redressal and Disciplinary Action Committee 

*      ICC – Internal Compliance Committee – deals with POSH

Advanced Govt Statutory & Labour Welfare

Govt Statutory & Labour Welfare Documents to be maintained by Payroll Department

·         Form - A (Maternity Muster)

·         Form - B (Monthly Wages)

·         Form - C (Fines)

·         Form - D (Equal Remuneration)

·         Form - P (Advances)

·         Form - Q (Register of Employment)

·         Form - R (Wages)

·         Form - S (Daily Hours of Work)

·         Form - T (Wage Slip)

·         Form - I (Description of Festivals)

·         Form - III (Description of Festivals)

·         Form - IV (OT)

·         Form - V (Holidays – liaison Officer)

·         Form - VI (Holidays – Display at Notice Board)

·         Form - 1 (Workmen)

·         Form - 11 (Accident Book)

·         EPF Inspection

·         ESI Inspection & Visitors Book

Advanced ACTS & Govt Laws to Safeguard Hospital & Public

Govt Acts - Applicable to Hospital

Ø  Contract Act, 1982

Ø  SC & ST Act, 1989

Ø  Factories Act, 1948

Ø  Income Tax Act, 1961

Ø  Gift Tax Act - IT, 1961

Ø  Companies Act, 1956

Ø  Child Labour Act, 1986

Ø  Indian Penal Code, 1860

Ø  Fatal Accidents Act, 1855

Ø  Contract Labour Act, 1970

Ø  Lift & Escalators Act, 1997

Ø  Labour Welfare Fund, 1972

Ø  Maternity Benefit Act, 1961

Ø  Payment of Bonus Act, 1965

Ø  Payment of Wages Act, 1936

Ø  Sexual Harassment Act, 2013

Ø  Indian Trade Union Act, 1926

Ø  The legal Metrology Act, 2009

Ø  Hospital PAN - Sec 139A, 1961

Ø  Equal Remuneration Act, 1976

Ø  Payment of Bonus Rules, 1975

Ø  The Motor Transport Act, 1961

Ø  Disaster Management Act, 2005

Ø  The Industrial Disputes Act, 1947 

Ø  Indian Nursing Council Act, 1947

Ø  Persons with Disability Act, 1995

Ø  Shops & Establishment Act, 1947

Ø  Negotiable Instruments Act, 1881

Ø  Catering & Establishment Act, 1958

Ø  Employees Compensation Act, 1923

Ø  PPF - Public Provident Fund Act, 1968

Ø  Payment of Gratuity Act, 1972 & 1973

Ø  Protection on Human Rights Act, 1993

Ø  Inter State Migrant Workmen Act, 1979

Ø  The Workmen’s Compensation Act, 1923 

Ø  Employment Exchange Act, 1969 & 1986

Ø  ESI - Employee State Insurance Act, 1948

Ø  The  Apprentices  Act, 1961  & Rules , 1991

Ø  Tax Deduction at Source Act - IT Act, 1961

Ø  Professional Tax - Cantonments Act, 1942

Ø  Prevention of Food Adulteration Act, 1954

Ø  EPF - Employee Provident Fund Scheme, 1952

Ø  National & Festival Holidays under Shop Act, 1958

Ø  Minimum Wages Act, 1948 - Tamil Nadu Rules, 1953

Ø  The legal Metrology Act - Packed Commodities, 2011

Ø  Indian Medical Council Act & Code of Medical Ethics, 1956

Ø The Tamil Nadu Industrial Establishments (National And Festival Holidays) Act, 1958 

Ø The supreme court Guidelines 2002 a Committee for  prohibition  of  sexual harassment 

Ø The T. N. Establishments (Conferment of Permanent Status to Casual Workmen) Act, 1981 

Ø Contract  Labour  (Regulation  and  Abolition) Act,  1970  & Tamil  Nadu  Contract  Labour   Rules, 1975  

Ø  Visitors Book - Govt Statutory Audit

Ø  Employers Liability Act, 1938 -- (JD, JS & SOP)

So, why should I conduct a payroll audit? The better question is why should not we?

Conducting a payroll audit regularly can help you:

1.      !! Remember!!

a.       Internal Audit Team will hound you

b.      Don’t miss pay dates – pay salary on or before 7th of every month

2.     Ensure leave Bank & Wage Slip match

3.     Verify your tax withholding's are accurate

4.     Accurately account for paid or unpaid time off

5.     Remove terminated employees from your payroll

6.     Spot calculation mistakes if doing payroll by hand

7.     Catch manual errors made when entering numbers into a system

8.     Compare hours paid to when employees Clocked in and Punched out

9.     Ensure you are compliant with employment laws (e.g., overtime pay)

10.  Re check Values of Net Salary is credited to Employees bank account

11.   Prevent payroll fraud by weeding out ghost employees or miss marked time cards

If you fail to audit your payroll process, your hospital business can end up doling out excess money, breaking Indian employment laws, and remitting incorrect tax amounts. 

Who can Audit Payroll? Who can Question Me? 

Controllers of Payroll in House and External Agencies

1.      HR Manager

2.      ESIC – Inspections

3.      Sanitary Inspector

4.      Hospitals MIS team

5.      Hospitals Finance Head

6.      Provident Fund Inspector

7.      Labour Department Inspections

8.      Hospitals Quality Manger – QC team

9.      Hospital’s Grievances Redressal Committee

10.    Minimum Wages Act check – Labour officer will visit our hospital premises

Accreditation Boards of QCI – Quality Council of India

The below listed are Govt of India's governing bodies - when audit by these powerful boards happen they will check Payroll for Sure

1. National Accreditation Board for Hospitals and Healthcare Providers (NABH)

2. National Accreditation Board for Certification Bodies (NABCB)

3. National Accreditation Board for Testing and Calibration Laboratories (NABL)

4. National Accreditation Board for Education and Training (NABET)

 5. National Board for Quality Promotion (NBQP) 

6. Quality Council of India (QCI)

Tips & Tricks

Few Tips & Tricks for your convenience

·         Walk in to all the Dept's

·         Fix Salary as per Minimum Wages Act - 1948

·         Allocate Leave according to the type of Recruitment

·         OT - Pay double wages as per norms – but do HR pay.

·         Fix Salary as per Employees’ Department & Designation

·         Payment of salary before 7th of every month - payment of wages act – 1936

·         Remember Locality of Employment before proceeding to allowances fixation

·         Pay LWF – Labour Welfare Fund & Enjoy Govt Education & Training for Free

·         Labour Welfare Fund: Every Employee contributes Rs.10/- per year and every Employer in respect of and such Employee, contributes Rs.20/- per year.

·         Be updates & know new slabs of PT and LWF.

·         Professional Tax : PT has to be paid twice in a year - "half-year" shall be from the 1st day of April to the 30th day of September and from the 1st day of October to the 31st day of  March of a year;

·         PF: Provident Fund to be paid on monthly basis – Employer & Employee contribution to be on equal basis

·         PF – Provident Fund 

         Employer: -  (https://unifiedportal-emp.epfindia.gov.in/epfo/)

         Employee:  - (https://unifiedportal-mem.epfindia.gov.in/memberinterface)

·         ESIC – Employee’s State Insurance Corporation - (https://www.esic.nic.in)

·         ESI: Employees State Insurance fund to be paid on Monthly basis... Employer pays more, Employees pay less contribution

·         EL - Earned Leave – (Eligibility - After one year from date joining & continuous service

·        Per Annum 12 Days of CL, EL & SL – to be allocated for all permanent employees TN S&E Act 1947

Policy Recommendation

  Developing HR Policies

  Create awareness among the employees

  Implementing Approved policies effectively

  Proposed to the Management with Justification

  Periodical monitoring and updating in the policy

R&R - Rewards & Recognition Management

Awards & Rewards

Succession Planning

Rewards & Recognition

Designing non-financial reward management system

To recognise employees best performance and initiatives

Engagement, motivation and preservation of human capital

Documents Manager

HR Department should maintain the following as per NABH

* Employee Files 

* HR Dept Sop 

* Payroll Dept Sop 

* Attending Committee Meetings

* Supporting HR Department as per SOP.

Responsibilities of Payroll Department

Should have experience in Hospital HR

Employee File Creation

Creating Fitment & Allocation of Payroll ID

Attendance & Time Office Management

Time Management

Leave Management

Salary & Payroll Muster – Compensation .Mgmt

Payment of Wages as per Eligibility Criteria

Payment of Employee Welfare contribution – PF, ESIC, LWF, PT

Removal of old Employees - Exiting Employees

Reporting & MIS

Govt. Statutory and Payments as per state & central norms 

Basic Employability Skills Essential - Candidate Profile for HR

Attentive listener

Hospital Experience Preferred

Excellent communication skills

An open minded and positive attitude

Comfortable working in a highly visible role

Ability to network and strong interpersonal skills

Exceptional analytical and problem-solving skills

Fluent skills in English, in speaking as well as writing

Good work experience in tech and product recruitment

Qualification Preference: M.Com, MSW or MBA- Finance

Ability to handle ambiguity and know how to prioritise in a fast-paced environment

Honest, ethical, and dependable Experienced in mediation and conflict resolution processes

To establish good rapport and interpersonal relations with employees and candidates, to ensure cost effective manpower hiring, to be well groomed, punctual and adhere to company policies and practices

Experience with payroll software Skills: Performance Evaluation, Compensation & Benefits, Employee Engagement, and Payroll Management.

Degree in relevant field and a track record of being a doer, having delivered on projects independently and successfully

A dedication to being creative and process driven at the same time, constantly looking for ways to make things work more efficiently.

Key Skill(s) required

IT Skills - MS-Office, Email, HRMS, HR Skills, Salary Negotiation skills etc,

 Basic Skills

Grooming, English Proficiency Spoken and Written, Business Communication skills, Negotiation, Body Language, etc,

Role Overview

Therefore, organizational values and culture should be accepted and acted upon by everyone in the organization

Human resources are the most important assets and their tactful management is the key to success of an organization

The culture and values of an organization exert enormous influence on the organization

Culture Management is a system of inculcating a particular culture among employees by the management so that they think and behave according to the values, sanctions and attitudes of the organization...

The Day-to-Day Secrets of Hospital HR - Payroll, Part -I

“ HR Routines - What do a HR does in a Hospital ”

      Requires a certain standard of ethical practices from its members

      Counselling

      Administration

      Search Results

      Claims Handling

      Employee Meetings

      Labour Management

      Employee Orientation

      Personnel Management

      Pay results & Resources

      Performance Monitoring

      Work place Safety and Security

      Professional Development Programs

      Benefits & Compensation Management

      Staff Morale & Retention Personnel Management

Day-to-Day activities performed by HR – Pay Roll Specialist , Part -II

 " Payroll Activities "

On Boarding

Employee Retention

Antecedent verification

Attendance Management

Employee Communication

Performance Management

MIS and Payroll Reporting

File maintenance for doctors

Employee Personnel Files management

Reference

Click below link and learn all types of Acts and Schemes of .Govt of India

https://indiacode.nic.in

Conclusion

Handle Cash with Care.

Hospital HR – Payroll practices are divine.

Health care profession is motherly service to society.

Be Safe – Be Secured – Be Alert – Be Conscious - Be in touch with Dr Hari’s Learning Centre.

 - Jai Hind -

Prepared by -

Dr. N. Hari Prasad. PhD

Call: +91 - 7358 796162

swamyhariprasad@gmail.com

..Chennai..

*** The End ***