Cycle time in business days to process the payroll

This measure calculates the number of business days that elapse between the HR/benefits system cut-off and the payroll transmit date. It is a Cycle Time measure that helps companies analyze the duration of the "process payroll" process, which consists of the payment of salaries and wages in accordance with organizational policies and government regulations, from beginning to end.

Benchmark Data

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Measure Category:
Cycle Time
Measure Id:
100152
Total Sample Size:
2,459 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are days. Lower values are better.

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Cycle time in business days to process payroll from HR/benefits system cut-off to payroll transmit date

Key Terms

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Cycle Time

Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 9.5.1 - Report time (10753) - Recording the reporting time of employees on-site. Track working days, salary calculations, holidays taken, number of hours spend in the office, billing hours, etc.
    • 9.5.1.1 - Establish policies and procedures (10853) - Developing policies and procedures for the HR function to calculate compensation.
    • 9.5.1.2 - Collect and record employee time worked (10854) - Tracking billing hours of each employee on daily basis.
    • 9.5.1.3 - Analyze and report paid and unpaid leave (10855) - Tracking leaves allowed and taken by employees.
    • 9.5.1.4 - Monitor regular, overtime, and other hours (10856) - Observing the number of hours worked by an employees on daily basis. Track the number of hours worked by an employee, as well as the number of hours worked beyond normal working hour's according to company standards.
    • 9.5.1.5 - Analyze and report employee utilization (10857) - Monitoring the number of productive hours for employees.
  • 9.5.2 - Manage pay (10754) - Managing the total payments made in employees payroll, including bonuses and compensation.
    • 9.5.2.1 - Enter employee time worked into payroll system (10858) - Tracking the number of hours worked for the payroll system. Register the number of hours worked by an employee into the payroll system for the purpose of calculating salaries or wages.
    • 9.5.2.2 - Maintain and administer employee earnings information (10859) - Tracking and oversee salary breakups of employees. This process requires the organization to manage and update information pertaining to the structure of every employee's salary. This would involve the updating any changes to the salary structures of the employees, in a central repository which can be accessed by pertinent departments.
    • 9.5.2.3 - Maintain and administer applicable deductions (10860) - Processing salary deductions for tax purposes. Keep and manage the details of every employee's salary deductions based on their expenses and investments during the year.
    • 9.5.2.4 - Monitor changes in tax status of employees (10861) - Tracking changes in the salary structure of employees for tax deductions.
    • 9.5.2.5 - Process and distribute payments (10862) - Processing and distributing salaries to all employees. Execute the payroll management function through the dispensation of employee salaries. Leverage a centralized database of all payroll expenses.
    • 9.5.2.6 - Process and distribute manual checks (10863) - Handling incorrect/omitted salary payments.
    • 9.5.2.7 - Process period-end adjustments (10864) - Adjusting salary deductions for tax purposes at the end of the year.
    • 9.5.2.8 - Respond to employee payroll inquiries (10865) - Addressing salary-related queries raised by employees.
  • 9.5.3 - Manage and process payroll taxes (10755) - Deducting and paying taxes from employees' salaries.
    • 9.5.3.1 - Develop tax plan (14075) - Devising a method to minimize payroll tax liability by means of allowances, deductions, exclusions or exemptions.
    • 9.5.3.2 - Manage tax plan (14076) - Overseeing maintaining the reduction of payroll taxes [14075].
    • 9.5.3.3 - Calculate and pay applicable payroll taxes (10866) - Paying tax according to appropriate deductions made from salaries. Calculate and pay the tax liabilities according to the salaries and tax regulations of employees with the help of certified chartered accountants.
    • 9.5.3.4 - Produce and distribute employee annual tax statements (10867) - Providing tax deductions statements created by certified chartered accountants to every employee for their reference or refunds.
    • 9.5.3.5 - File regulatory payroll tax forms (10868) - Filling taxes, and highlighting different sources of income and expenditures made.