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Glossary

Payroll Processing

Payroll processing includes all operations required to calculate, validate, and distribute employee compensation in compliance with applicable laws and regulations.

Payroll processing is a critical HR function. It involves managing worked hours, absences, deductions, benefits, and statutory obligations, while ensuring accuracy and compliance.

Payroll processing steps

  • Data collection (time, absences, variable compensation)
  • Salary and deduction calculations
  • Validation and compliance checks
  • Payroll disbursement
  • Required reporting and documentation

 

The importance of payroll processing

Efficient payroll processing reduces the risk of errors, strengthens employee trust, and ensures legal compliance. Leveraging technology helps automate workflows and improve reliability.

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