If you run a business you might already know the fact that the employees are like a builder that helps to build your business from zero and how important they are to your success. But managing teams, products and customers are on one hand but there’s another task namely payroll management that is often confusing.
But don’t worry as you’re not alone as many business owners and HR managers in Nepal face challenges when it comes to managing salaries, deduction and tax compliance. That’s exactly why GFCS Nepal offers payroll management services to make your life easier and the process of payroll management easy and hassle free.
In this article we will walk you through the basics of payroll management in Nepal, why it is necessary and how GFCS Nepal can support you to make your life easier.
What is payroll management?
In simple terms, payroll management is the process of handling everything related to employee payments. It majorly includes keeping record of salaries, managing benefits, and ensuring the employees are paid timely.
Here’s what payroll management system usually covers:
- Basic salary calculation
- Overtime and leave calculation and increase or decrease on the basic salary
- Salary deposits in Provident Fund(PF) or Citizen Investment Fund(CIT)
- Tax Deducted at Source (TDS) calculation and deductions.
- Bonuses and incentives provision
- Payslip generation
- Making sure the payroll is in compliance with the labor and tax laws of Nepal
Does it sound like it is a lot to handle and a complicated task? That’s exactly why many companies are outsourcing this task of payroll management to experts like GFCS Nepal.
Why is payroll management important?
Well, you might wonder why one can manage payroll manually using excel, well that’s possible for small scale industries but as your company grows a proper payroll management is necessary, and here’s why:
- Avoid legal issues: Mistakes in salary calculations and deductions can lead to penalties and disputes. Every company must follow nepal’s labour law and provide the salaries as designated.
- Saves time and reduces errors: Manual calculations take time but with the help of a streamlined payroll system most of your time is saved.
- Builds trust with employees: Timely salary payments encourage employees to work with satisfaction.
- Ensures Tax compliance: With payroll management you will not face any fines due to missed deadlines
- Improves record keeping: Every payslip is recorded and the account is kept clean which promotes transparency.
Payroll Components in Nepal
To understand payroll, it’s important to understand it’s components involved in Nepal’s context:
1. Gross salary: It is the salary before any deductions. This includes basic pay, allowances, bonuses and benefits.
2. Deductions: In Nepal particularly there are mainly three types of deductions:
- Provident Fund(PF): which is collected both from employee and employer which is 10% each.
- Citizens Investment fund(CIT): Usually 10%, it is optional and mainly depends on the contract or agreement.
- TDS: This is the amount of tax that is deducted directly from the salary of the employee by the employer and is later submitted to the government as per the tax rate.
3. Net Salary: This is the amount the employee receives after all the deductions.
4. Leave and attendance management: Payroll system must consider overtime work and absence.
Common challenges in payroll management
Here’s a few issues Nepali businesses often face with payroll.
- Delayed payments
- Poor record keeping
- Entry mistakes
- Lack of understanding of the laws that are changing
- Incorrect tax deductions
With GFCS Nepal on your side you can look to avoid these problems completely. We handle everything for you and make sure to remain tax compliant.
Why choose GFCS Nepal for payroll management?
At GFCS Nepal we understand that only paying salaries is not payroll management, it includes accuracy, trust, and law compliance. Services of GFCS Nepal are:
- Complete payroll setup
- Monthly payroll processing
- Tax compliance
- Confidentiality
- Specified for your type of business
Final Thoughts
Payroll management should not be made complex as it is a very easy going process if done right it can ensure you stay tax compliant and ensures employee satisfaction and also saves a lot of your time.
Irrespective of the type of your business we make payroll system tailored for your type of business and make sure the process is smooth and hassle free
Contact Us:
We are here to make your time very efficient. We will provide suggestions and offer experienced professionals that will help you to make a business plan from scratch. We are going to help in every step of setting up a business and make the process of setting up a business as simple and easy as possible for you so that your ideas don’t go in vain. If you have queries or need any kind of help or consultation we are always at your service and our team is always eager to work and coordinate with you to make your work easier. For someone who needs our assistance you can contact us through
Phone: 9802360825
Email: [email protected]
Website:https://gfcsnepal.com/
Location: https://g.co/kgs/J6pufPG
You can also reach us through social media, we have our services available on facebook, Instagram and twitter. You can leave in a msg or a call and our team of experts will reach you as soon as possible. We look forward to working with you and helping you with the process of making a business plan.