Payroll administration

As well as the policy and procedures for financial management, there are other aspects that help ensure high quality payroll management. They are:

  • efficiency

  • accuracy and clarity

  • reactivity.

Efficiency

Employees invest emotionally and materially in the timely administration of their pay. Loan repayments, rent and household bills rely on a regular, predictable income. It is highly stressful when that income payment is unreliable.

More than one person needs training on payroll administration so that the absence of one is covered by another and administrative efficiencies are gained.

Accuracy & clarity

Each payment should include a salary advice statement, detailing components of the salary, including allowances, periodic deductions and tax deductions.

The following link leads to an example of a payroll advice statement.

Reactivity

If an employee queries their pay, ensure that payroll officers take time to listen, check the calculations and explain how that pay was calculated.

If there was a mistake, it should be graciously acknowledged and corrected immediately. This is fundamental to good service.