Payroll as a Chain of Custody
Eight handovers, four of which need no human step
Written for: Finance and payroll leads who close a monthly cutoff in India
The time an Indian payroll takes is almost never spent on arithmetic. It is spent establishing what happened, reconciling a biometric log against leave applications, comp-offs, regularisations and a manager's recollection, before a single calculation can begin.
This briefing sets out payroll as a sequence of eight custody handovers rather than a computation, identifies which of the eight can be eliminated entirely by integration, and specifies exactly what each statutory head requires as input and produces as output.
Contents
- The problem is establishment, not calculationWhy four reasonable records cannot be reconciled without a person.
- The eight handoversThe monthly sequence, and which steps require no human action.
- Statutory heads as rules, not columnsEach head has an eligibility test, a base, a rate and a ceiling that move independently.
- What has to leave the buildingA run is finished when money and paperwork have both moved.
- Reconstructing a run six months laterWhy effective-dating the salary structure is what makes payroll auditable.
