IT Declarations and the three types of payroll administrators

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By Vishnupriya
2 minute read ● April 26, 2019
IT Declarations

There are three types of payroll administrators in the world, and there are three words to describe them: bliss, miss, kiss.

The blissfully ignorant folks happily process their monthly payroll disregarding tax laws and compliances. Why worry about IT declarations or tax filing? We will deal with it when the situation arises.

The next type of people and the largest is the "miss" group. They understand their responsibilities and work hard. However, the work weighs them down. They end up with mistakes, missed deadlines, and misery.

The happiest of them all are the kissers. Before we discuss this group, let's get some things straight.

TDS and IT Declaration

An employer has to deduct income tax for all eligible employees and remit the taxes to the tax department every month. They need to file Form-24 returns every quarter. To reduce the tax burden, employees can declare their tax savings and exemptions to the employer. The employee usually has time till the end of the year to furnish proofs of investments and waivers. If you don't deduct proper TDS, you are in breach of law.

If you deduct excess TDS, you have disgruntled employees.

So the payroll admin ends up having to collect IT declarations from each employee and has to ensure accurate TDS is deducted and paid.

Manual Process Chart 15 April 2019 V4 (1)

What you see here is a common pain in all manual processes. The payroll admin ends up doing the bulk of the transactional work.

Handling IT declarations is a regular headache due to new hires, promotions, salary revisions, change of residence, and so on. You need to spend plenty of time for queries regarding the taxable income, tax law changes, or the status of the IT declaration.

The manual process is also error-prone and leads to wrong income tax calculations, employee complaints and legal repercussions for both employer and employee.

KISS - Keep It Simple, Stupid

The best payroll admins adopt the KISS principle. They use a simple solution that makes all these problems vanish with a snap of fingers: employee self-service.

A good employee portal lets employees to key in IT declarations directly into the system. It assists the employees to carry out the IT declarations by providing relevant information. It enforces declaration limits as per law and validates the declaration. As a payroll admin, you only have to click a button to open or lock the IT declaration window.

Automated Process Chart 15 April 2019 V4 (2)

With such little effort involved, you can afford to let employees make changes to their IT declarations every month. It's desirable for employees because of changing circumstances like shifting homes, investing more, getting a promotion, an so on. Just unthinkable in a manual process!

Your entire payroll processing along with TDS / IT Declaration becomes a breeze. You save a lot of time, and effort reduces by more than 90%.

Employee Self Service (ESS) facility cuts down employee queries by more than 70%. For the remaining questions, streamline the process with the online help desk.

Simple payroll solutions like greytHR eliminate transactional work and let you focus on the important stuff. At the same time, you get happy employees through faster and better service powered by employee-friendly policies.

So which group do you fall in? We wish you a great fiscal year ahead!

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