Payroll is one of the most important aspects of business. It affects employee morale and reflects a business’s financial stability and reputation. Because employees rely on their paychecks, errors or untimely payment can create a lack of trust. But when paychecks are accurate and delivered in a timely manner, employees are more engaged and motivated.

Payroll functions are covered by either the finance department or human resources department in most organizations. Essentially, payroll is number-driven and calls for knowledge of tax laws and accounting. Thus, many respondents believe it should be positioned with the finance department.

Payroll is the total disbursement funded from an organization to employees by following the disbursement record and checking the gross pay of the work, employee leaves taken, pay for the payroll taxes, pay for the retirement cost and health insurances. Net pay is found by measuring the above-mentioned pay. Payroll distribution reduces an employee’s pay from the gross pay, and it will come back to the employees in retirement disbursement. Net pay is the final disbursement to employees.

Payroll distribution is the final disbursement to employees with a proper deduction from gross pay. A deduced quantity will come back to the employees throughout retirement disbursement by following the paycheck record.

Payroll accountants distribute paychecks to employees. Payroll is calculated by finding the net pay of employees, keeping the disbursement records for payback to the employees. Payroll accountants use two methods: payroll by hand calculation or payroll calculation by payroll software.

This policy aims to establish guidelines in the handling and distribution of payroll to the employees.

Here are the guidelines in the payroll distribution in the company:

  1. House of IT processes payroll on a biweekly schedule. Compensation is a private matter thus the company encourages confidentiality meaning the payroll breakdown shall only be within the company specifically the finance and HR department, the CEO, and the employee involved. The employees are expected to review their paycheck for errors and if they find any, they are tasked to report it to CHROD immediately.
  2. Employees are paid every 10th and 25th of the month. If the regularly scheduled payroll date falls on a Saturday, Sunday, or Monday, salary shall be released the Friday immediately preceding the scheduled pay.
  3. When a payroll date falls on a holiday, employees will be paid on the last business day before holiday.