9.5 - Process payroll
PCF ID: 10732 | Elements: 22 | Metrics Available: Y | Benchmarkable: 4
Definition
Handling reporting time, managing pay, and processing taxes from salaries. Pay employees. Withhold taxes. Confirm the correct funds are paid to the correct government agency.
Overview
This process group covers process payroll within the broader context of Manage Financial Resources.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 9.5.1 | Report time | 10753 | 5 | Y |
| 9.5.2 | Manage pay | 10754 | 8 | Y |
| 9.5.3 | Manage and process payroll taxes | 10755 | 5 | Y |
9.5.1 - Report time
PCF ID: 10753
Definition: Recording the reporting time of employees on-site. Track working days, salary calculations, holidays taken, number of hours spend in the office, billing hours, etc.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.5.1.1 | Establish policies and procedures | 10853 | 0 | N |
| 9.5.1.2 | Collect and record employee time worked | 10854 | 0 | N |
| 9.5.1.3 | Analyze and report paid and unpaid leave | 10855 | 0 | N |
| 9.5.1.4 | Monitor regular, overtime, and other hours | 10856 | 0 | N |
| 9.5.1.5 | Analyze and report employee utilization | 10857 | 0 | N |
9.5.1.1 - Establish policies and procedures
Definition: Developing policies and procedures for the HR function to calculate compensation.
9.5.1.2 - Collect and record employee time worked
Definition: Tracking billing hours of each employee on daily basis.
9.5.1.3 - Analyze and report paid and unpaid leave
Definition: Tracking leaves allowed and taken by employees.
9.5.1.4 - Monitor regular, overtime, and other hours
Definition: Observing the number of hours worked by an employees on daily basis. Track the number of hours worked by an employee, as well as the number of hours worked beyond normal working hour's according to company standards.
9.5.1.5 - Analyze and report employee utilization
Definition: Monitoring the number of productive hours for employees.
9.5.2 - Manage pay
PCF ID: 10754
Definition: Managing the total payments made in employees payroll, including bonuses and compensation.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.5.2.1 | Enter employee time worked into payroll system | 10858 | 0 | N |
| 9.5.2.2 | Maintain and administer employee earnings information | 10859 | 0 | N |
| 9.5.2.3 | Maintain and administer applicable deductions | 10860 | 0 | N |
| 9.5.2.4 | Monitor changes in tax status of employees | 10861 | 0 | N |
| 9.5.2.5 | Process and distribute payments | 10862 | 0 | N |
| 9.5.2.6 | Process and distribute manual checks | 10863 | 0 | N |
| 9.5.2.7 | Process period-end adjustments | 10864 | 0 | N |
| 9.5.2.8 | Respond to employee payroll inquiries | 10865 | 0 | N |
9.5.2.1 - Enter employee time worked into payroll system
Definition: Tracking the number of hours worked for the payroll system. Register the number of hours worked by an employee into the payroll system for the purpose of calculating salaries or wages.
9.5.2.2 - Maintain and administer employee earnings information
Definition: Tracking and oversee salary breakups of employees. This process requires the organization to manage and update information pertaining to the structure of every employee's salary. This would involve the updating any changes to the salary structures of the employees, in a central repository which can be accessed by pertinent departments.
9.5.2.3 - Maintain and administer applicable deductions
Definition: Processing salary deductions for tax purposes. Keep and manage the details of every employee's salary deductions based on their expenses and investments during the year.
9.5.2.4 - Monitor changes in tax status of employees
Definition: Tracking changes in the salary structure of employees for tax deductions.
9.5.2.5 - Process and distribute payments
Definition: Processing and distributing salaries to all employees. Execute the payroll management function through the dispensation of employee salaries. Leverage a centralized database of all payroll expenses.
9.5.2.6 - Process and distribute manual checks
Definition: Handling incorrect/omitted salary payments.
9.5.2.7 - Process period-end adjustments
Definition: Adjusting salary deductions for tax purposes at the end of the year.
9.5.2.8 - Respond to employee payroll inquiries
Definition: Addressing salary-related queries raised by employees.
9.5.3 - Manage and process payroll taxes
PCF ID: 10755
Definition: Deducting and paying taxes from employees' salaries.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.5.3.1 | Develop tax plan | 14075 | 0 | N |
| 9.5.3.2 | Manage tax plan | 14076 | 0 | N |
| 9.5.3.3 | Calculate and pay applicable payroll taxes | 10866 | 0 | N |
| 9.5.3.4 | Produce and distribute employee annual tax statements | 10867 | 0 | N |
| 9.5.3.5 | File regulatory payroll tax forms | 10868 | 0 | N |
9.5.3.1 - Develop tax plan
Definition: Devising a method to minimize payroll tax liability by means of allowances, deductions, exclusions or exemptions.
9.5.3.2 - Manage tax plan
Definition: Overseeing maintaining the reduction of payroll taxes [14075].
9.5.3.3 - Calculate and pay applicable payroll taxes
Definition: Paying tax according to appropriate deductions made from salaries. Calculate and pay the tax liabilities according to the salaries and tax regulations of employees with the help of certified chartered accountants.
9.5.3.4 - Produce and distribute employee annual tax statements
Definition: Providing tax deductions statements created by certified chartered accountants to every employee for their reference or refunds.
9.5.3.5 - File regulatory payroll tax forms
Definition: Filling taxes, and highlighting different sources of income and expenditures made.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 22 elements
| ID | Name | Definition |
|---|---|---|
| 9.5 | Process payroll | Handling reporting time, managing pay, and processing taxes from salaries. Pay employees. Withhold t... |
| 9.5.1 | Report time | Recording the reporting time of employees on-site. Track working days, salary calculations, holidays... |
| 9.5.1.1 | Establish policies and procedures | Developing policies and procedures for the HR function to calculate compensation. |
| 9.5.1.2 | Collect and record employee time worked | Tracking billing hours of each employee on daily basis. |
| 9.5.1.3 | Analyze and report paid and unpaid leave | Tracking leaves allowed and taken by employees. |
| 9.5.1.4 | Monitor regular, overtime, and other hou... | Observing the number of hours worked by an employees on daily basis. Track the number of hours worke... |
| 9.5.1.5 | Analyze and report employee utilization | Monitoring the number of productive hours for employees. |
| 9.5.2 | Manage pay | Managing the total payments made in employees payroll, including bonuses and compensation. |
| 9.5.2.1 | Enter employee time worked into payroll ... | Tracking the number of hours worked for the payroll system. Register the number of hours worked by a... |
| 9.5.2.2 | Maintain and administer employee earning... | Tracking and oversee salary breakups of employees. This process requires the organization to manage ... |
| 9.5.2.3 | Maintain and administer applicable deduc... | Processing salary deductions for tax purposes. Keep and manage the details of every employee's salar... |
| 9.5.2.4 | Monitor changes in tax status of employe... | Tracking changes in the salary structure of employees for tax deductions. |
| 9.5.2.5 | Process and distribute payments | Processing and distributing salaries to all employees. Execute the payroll management function throu... |
| 9.5.2.6 | Process and distribute manual checks | Handling incorrect/omitted salary payments. |
| 9.5.2.7 | Process period-end adjustments | Adjusting salary deductions for tax purposes at the end of the year. |
| 9.5.2.8 | Respond to employee payroll inquiries | Addressing salary-related queries raised by employees. |
| 9.5.3 | Manage and process payroll taxes | Deducting and paying taxes from employees' salaries. |
| 9.5.3.1 | Develop tax plan | Devising a method to minimize payroll tax liability by means of allowances, deductions, exclusions o... |
| 9.5.3.2 | Manage tax plan | Overseeing maintaining the reduction of payroll taxes [14075]. |
| 9.5.3.3 | Calculate and pay applicable payroll tax... | Paying tax according to appropriate deductions made from salaries. Calculate and pay the tax liabili... |
| 9.5.3.4 | Produce and distribute employee annual t... | Providing tax deductions statements created by certified chartered accountants to every employee for... |
| 9.5.3.5 | File regulatory payroll tax forms | Filling taxes, and highlighting different sources of income and expenditures made. |
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