How to measure performance of Payroll activities?

1. Efficiency.

2. Effectiveness.

3. Time.

1. Queries received

2. Accuracy

3. Tracking and reporting

4. Time

1. Ensure timely payroll

2. Clear and final payroll to be submitted for processing. There should be no rework or minimal last minute updates approved by management team only.

3. Incorrect payroll will have employees raising queries on the same.

Thanks for the invitation

Well.......Agreed with both answers given by

Mr.:  Patel and Mr. : Jetley as well too.

The complex payroll function is critical to an organization but can be difficult to manage. For the objectives of reliability and accuracy in the payroll department, an organization could develop goals which involve specialized payroll skills, upgraded technology and management knowledge of government regulations. Setting goals to meet the objectives can help an organization to cut costs and perform better.

Accuracy

A primary objective of the payroll department in an organization is to processes employee compensation timely and accurately. In processing compensation, the payroll department accurately withholds taxes and submits reports to federal and state agencies. To ensure the efficiency of the payroll function, payroll managers could establish goals to review payroll processes for any procedural weaknesses that may interfere with payroll accuracy and timeliness.

Performance

To set performance goals, an organization could measure the amount of work conducted vs. the cost of payroll dollars. Measuring performance vs. income expense can help an organization determine which theory applies to its culture: The more an employee is paid the more they will work or, the more motivated and engaged an employee is, the more he is likely to perform well. An objective for an organization would be to take steps to evolve to the second theory of performance.

Insurance

The payroll department is responsible for tracking the amounts of insurance premiums and labor tax, and breaking down the labor tax between the employer and employee. To simplify the process for employee queries, an organization's objective may be to accrue premiums as each paycheck is recorded to be able to reflect a full breakdown of each employee's payroll costing.

Outsource

Payroll activities do not provide a competitive advantage to an organization but the function is still critical to business operations. Therefore, the organization may consider outsourcing the function as one of its objectives. Outsourcing could reduce costs and hours devoted to payroll and allow employees to focus on profitable activities for the organization. Or, outsourcing would allow the organization to cut costs by reducing payroll staff.

I support the answer of Mr. Divyesh Patel and Mr. Vinod Jetley.

Agreed with Mr. Patel. Thank you.