Payroll is the process by which employers pay an employee for the work they have completed. The payroll process includes calculating the hours worked, withholdings, and taxes due, and then issuing a paycheck to the employee.
The first step in the payroll process is to calculate the hours worked. This can be done manually or by using time tracking software. Once the hours worked have been calculated, the next step is to withhold taxes and other deductions from the employee’s pay.
Withholding taxes includes deducting federal, state, and local taxes from the employee’s pay. Other deductions that may be withheld from an employee’s pay include health insurance, dental insurance, and retirement contributions. After taxes and other deductions have been withheld, the next step in the payroll process is to calculate the employee’s net pay.
Net pay is the amount of money an employee takes home after all taxes and deductions have been withheld from their pay. The final step in the payroll process is to issue a paycheck to the employee. The paycheck will include the employee’s name, address, social security number, and the amount of net pay the employee is receiving.
Payroll data is a critical component of any business. It can help you understand your labor costs, track employee productivity, and make informed decisions about your workforce. When it comes to analyzing Workday payroll data, there are a few key metrics you should keep in mind:
1. Labor Costs: This includes both direct and indirect costs associated with your workforce. Direct costs are things like employee salaries and benefits, while indirect costs are things like payroll taxes and workers’ compensation insurance.
2. Employee Productivity: This metric measures how much work employees are actually getting done. It can be helpful in identifying areas where employees may need more training on Workday or support.
3. Turnover: These measures how often employees are leaving your company. High turnover can be costly and indicative of other problems, so it’s important to keep an eye on this metric.
4. Absence Rate: These measures how often employees are absent from work. This can be due to things like vacation, sick days, or personal days.
5. Time to Fill: These measures how long it takes to fill a vacant position. A high time to fill can indicate that your recruiting process needs improvement.
6. Salary Range: This is the range of salaries you’re paying for a particular position. It’s important to make sure you’re paying competitive rates to attract and retain top talent.
7. Employee Demographics: This includes things like age, gender, and tenure. This information can be helpful in understanding your workforce and making sure you have a diverse team. Payroll data is a valuable tool for any business. By tracking these key metrics, you can gain insights into your workforce and make informed decisions about your employees.