can anyone explain in detail how the payroll processing is done in a company having 50+ employees.
From India, Madras
2From India, Madras
Hi.... Prema Latha
The Payroll Processing will be easy if you maitain complete EMPLOYEE DATABASE working in your organisation.
Employee Codes helps you in sorting the problems.
For 50+ employees, Payroll Procssing can be done on an excel sheet.
The sheet should contain the basic information of the employees like Employee code, Employee Name, Designation, Departtment/Section, Date of Joining, Date of Birth, PF No, ESI No, Father Name.
Total days for the month, Days to pay DTP(worked days for the month including leaves & W/O)
DTP= (Physical Working Days+Paid Leaves (CL,SL,EL)+Paid Holidays+W/O+Compensatory Offs) - (Loss of Pay+Unauthorised Absence)
Salary Details: Gross Salary, Basic, HRA, conveyance, DA, FDA, VDA, Total Salary, Basic earned, HRA earned, Conveyance earned, DA earned, FDA earned, VDA earned, total salary earned.
Other Pays: Overtime pay, incentive pay etc
supplementary pay, arrear pay
Deductions: PF ded, ESI ded, deductions for late comings / early goings etc.
The Gross salary earned for the month + other pays= Total earnings of the employee
The total earnings of the employee - Total deductions = NET SALARY OF THE EMPLOYEE FOR THE MONTH
I hope I haven't missed any thing
If I have missed any please let me know.
Bye...
Sindhu
From India, Hyderabad
The Payroll Processing will be easy if you maitain complete EMPLOYEE DATABASE working in your organisation.
Employee Codes helps you in sorting the problems.
For 50+ employees, Payroll Procssing can be done on an excel sheet.
The sheet should contain the basic information of the employees like Employee code, Employee Name, Designation, Departtment/Section, Date of Joining, Date of Birth, PF No, ESI No, Father Name.
Total days for the month, Days to pay DTP(worked days for the month including leaves & W/O)
DTP= (Physical Working Days+Paid Leaves (CL,SL,EL)+Paid Holidays+W/O+Compensatory Offs) - (Loss of Pay+Unauthorised Absence)
Salary Details: Gross Salary, Basic, HRA, conveyance, DA, FDA, VDA, Total Salary, Basic earned, HRA earned, Conveyance earned, DA earned, FDA earned, VDA earned, total salary earned.
Other Pays: Overtime pay, incentive pay etc
supplementary pay, arrear pay
Deductions: PF ded, ESI ded, deductions for late comings / early goings etc.
The Gross salary earned for the month + other pays= Total earnings of the employee
The total earnings of the employee - Total deductions = NET SALARY OF THE EMPLOYEE FOR THE MONTH
I hope I haven't missed any thing
If I have missed any please let me know.
Bye...
Sindhu
From India, Hyderabad
Hi,
Your all are almost Right, Exepect Income tax calculation and working.
Your have to work Whoes Gross Salary is Above 12500(PM) or
150000/- PA then you have start think about Income tax calculation either in the every month basis or from the Jan,feb, march alone.
you have to start calculating the Taxable income of the Employee/staff and deduct amount as per you calculation.
If you are not duduct the Income tax (TDS) on your Staff/employee that expenses(salary) you can't claim under the P&L Account for that year.
Regards
Kugan Paramasivam.
From India
Your all are almost Right, Exepect Income tax calculation and working.
Your have to work Whoes Gross Salary is Above 12500(PM) or
150000/- PA then you have start think about Income tax calculation either in the every month basis or from the Jan,feb, march alone.
you have to start calculating the Taxable income of the Employee/staff and deduct amount as per you calculation.
If you are not duduct the Income tax (TDS) on your Staff/employee that expenses(salary) you can't claim under the P&L Account for that year.
Regards
Kugan Paramasivam.
From India
Hi Prema,
This is Mamatha from Bangalore. I have one Format. But you need to still work on that format as you need to update it with Income tax details. Just check the attached document. Hope it might get u an Idea.
Regards,
Mamatha
This is Mamatha from Bangalore. I have one Format. But you need to still work on that format as you need to update it with Income tax details. Just check the attached document. Hope it might get u an Idea.
Regards,
Mamatha
Hi Premalatha,
Sindhu has covered most of the components required for processing payroll, but every December a "Labour Welfare Fund" needs to be deducted from the employees eligible for it.
Most of us ignore this as we would have configured this in the payroll software which automatically takes care of this deduction. The Payroll software will help us in verifying the payroll process done is correct by generating the Delta Report. Most of the Statutory reports of PF, ESI, PT and IT will also be covered, this helps us to reduce our time spent on salary process work.
Thanks,
Srinivas
Sindhu has covered most of the components required for processing payroll, but every December a "Labour Welfare Fund" needs to be deducted from the employees eligible for it.
Most of us ignore this as we would have configured this in the payroll software which automatically takes care of this deduction. The Payroll software will help us in verifying the payroll process done is correct by generating the Delta Report. Most of the Statutory reports of PF, ESI, PT and IT will also be covered, this helps us to reduce our time spent on salary process work.
Thanks,
Srinivas
Hi Everybody,
Please guide me, is there any hard and fast rule anywhere in any law, regarding the heads in the salary ie. salary breakup should be in a certain percentage in each head, or can we distribute the gross salary under various heads as per our convenience? because presently we are distributing the salary in the following way:
Basic: 70%
HRA: 12%
CCA: 15%
Spl. Allowance: 3%
----------------------
Total (Gross) : 100%
Less: PF (12% of Basic)
Less: ESI (1.75% of Total (Gross))
Less: TDS wherever applicable
is this format fine?? or is there any legal / approved format for salary distribution?
Regards,
Kapil....
From India, Delhi
Please guide me, is there any hard and fast rule anywhere in any law, regarding the heads in the salary ie. salary breakup should be in a certain percentage in each head, or can we distribute the gross salary under various heads as per our convenience? because presently we are distributing the salary in the following way:
Basic: 70%
HRA: 12%
CCA: 15%
Spl. Allowance: 3%
----------------------
Total (Gross) : 100%
Less: PF (12% of Basic)
Less: ESI (1.75% of Total (Gross))
Less: TDS wherever applicable
is this format fine?? or is there any legal / approved format for salary distribution?
Regards,
Kapil....
From India, Delhi
Payroll processing is normally a technical job requiring knowledge of various law related to PF , ESIC , IT , Bonus , IT etc. However , it is simple to understand and then practice. Please consult or any professional agency who deal with payroll processing.
Regards,
Rajpal
From India, Mumbai
Regards,
Rajpal
From India, Mumbai
Hi Premalatha,
Processing Salary on excel is OK as it gives immediate result but I recommend working on professional software. Software store data and the data can be queried to generate MIS reports apart from statutory reports. The payslip can be automatically converted into PDF format and emailed to respective employees and so on.
I use Ziacpay developed by Ziac Software Private Limited a Bangelooru based company.
Thanks,
Srinivas
Processing Salary on excel is OK as it gives immediate result but I recommend working on professional software. Software store data and the data can be queried to generate MIS reports apart from statutory reports. The payslip can be automatically converted into PDF format and emailed to respective employees and so on.
I use Ziacpay developed by Ziac Software Private Limited a Bangelooru based company.
Thanks,
Srinivas
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