Standard Operating Procedure (SOP) for Monthly Payroll Preparation Using ZOHO Books Payroll Module

Objective


To streamline payroll preparation using Zoho Books Payroll Module, ensuring compliance with UAE labor and payroll laws while defining clear responsibilities between Kounted and the client.
Responsibilities

Client Responsibilities

  1. Provide Employee Data:

    • Employee details (name, ID, Emirates ID, salary breakdown, etc.).
    • Updates on new hires, terminations, and salary adjustments.
    • Compliance documentation for onboarding (e.g., labor contracts, visa details).

  2. Validate and Approve Payroll Data:

    • Review and confirm payroll summaries generated by Kounted.
    • Provide timely feedback or corrections before payroll processing deadlines.

  3. Fund Payroll:

    • Ensure sufficient funds are available in the designated payroll account for salary disbursement.

  4. Compliance with Tax and Legal Requirements:

    • Share documentation for any disbursement/reimbursement clarifications required for VAT compliance.

Kounted Responsibilities

Kounted Payroll Clerk:

  • Collect and organize employee payroll data received from the client.
  • Input data into Zoho Books Payroll Module.
  • Generate and share draft payroll reports with the client for approval.

Kounted HR Department:

  • Verify employee documentation for onboarding and ensure payroll compliance with UAE regulations (e.g., WPS requirements, end-of-service benefits).

Kounted Treasury Clerk:

  • Reconcile funds received from the client for payroll disbursement.
  • Monitor payment execution through the Wage Protection System (WPS) to meet MOHRE requirements.

Kounted Compliance Officer:

  • Ensure VAT compliance for any reimbursements or benefits included in payroll processing.

Workflow

Pre-Payroll Preparation

  1. Data Collection (Client to Kounted Payroll Clerk):

    • Client sends updated employee data by the 20th of each month.
    • Kounted HR reviews the data for compliance.

  2. Input and Draft Generation (Kounted Payroll Clerk):

    • Input collected data into Zoho Books Payroll Module.
    • Generate draft payroll report by the 22nd of each month.

  3. Review and Approval (Client to Kounted Payroll Clerk):

    • Client reviews draft payroll and provides feedback by the 25th of each month.
    • Kounted Payroll Clerk incorporates changes and locks payroll for processing.

Payroll Execution

  1. Funds Transfer (Client to Kounted Treasury Clerk):

    • Client transfers payroll funds to the designated Kounted account by the 27th of each month.

  2. Payroll Processing (Kounted Treasury Clerk):

    • Submit WPS-compliant payroll files via Zoho Books Payroll Module.
    • Monitor Central Bank approvals and salary disbursements.

  3. Compliance Check (Kounted Compliance Officer):

    • Ensure all payroll disbursements align with VAT and labor regulations.
    • Resolve any compliance discrepancies.

Post-Payroll

  1. Reports and Feedback (Kounted Payroll Clerk to Client):

    • Provide the client with disbursement confirmations and compliance reports.
    • Address any client concerns or discrepancies.

  2. Document Retention (Kounted Compliance Officer):

    • Securely store payroll data for future reference and audits.

Deadlines

Task
Responsible Party
Deadline
Provide updated payroll data
Client
20th of each month
Generate draft payroll report
Kounted Payroll Clerk
22nd of each month
Approve payroll report
Client
25th of each month
Transfer funds
Client
27th of each month
Process payroll
Kounted Treasury Clerk
28th of each month

Notes

  • Late submission of data or funds may result in processing delays.
  • Ensure that payroll compliance aligns with the UAE's Wage Protection System (WPS).