Full and Final Settlement in Pocket HCM
Every employee when leaving the company has to get paid for the last working month. This crucial procedure of transition, which occurs during resignation is known as Final Settlement. Often, final settlement is executed on the last working month or a few months later. The execution of this process varies from company to company. For instance, some companies prefer doing it at the time or resignation itself, whereas some opt to do it at a later date. In short, no method is and companies follow the method that best suits them.
When employee leaves an organization, all his dues such as Medical, LTA, any such allowances that are paid annually and the pay for days worked before the termination of services should be settled along with any other claims. This includes settlement of travel expenses or phone bill as well. Only when the F& F is done and all the dues are settled, relieving and other official letters are given to employee.
However, this entire process is no less than a draconian task especially for the human resource and payroll personnel of the company. This uproots the need for having an agile and automated solution that can save the HR personnel from all the hassles and pain of processing the full and final settlement process.
Pocket HCM provides the very useful feature of F&F settlement, which helps HR personnel to handle the full and final settlement process of employee in a smoothly and efficient manner. User of Pocket HCM has to select the employee for which he wants to process F&F settlement, after which he simply has to key in the resignation date and date on which the settlement would be processed. Based on this, the system will automatically calculate the due amount the organisation has to pay to that employee.
User can add more amount or modify the existing amount if required. If employee has salary more than the tax limit, then the system will automatically deduct the tax amount from his full and final settlement dues and update the worksheet and Form 16 accordingly.
At the end, the system will generate the receipt of full and final settlement for that employee, w which the HR manager can hand it to the employee. Employee can use this receipt for further communication.
To discover more about how Pocket HCM can ease your entire payroll and final settlement procedures, give us a shout-out on our Twitter or Facebook. You can also mail us at firstname.lastname@example.org or SMS SAGE to 56767
Originally published at blog.pockethcm.com on December 31, 2015.