yksoni
1

I want a details about the points keeps in mind when going to open a salary account of an employee. This is urgent because our company is new and about to open some salary accounts with IDBI bank. Our company deals in market research and web development as well. Is it necessary employee would be permanent (or freelancer also).
From India, Delhi
nikitalk
11

Keep in mind the following:
1. Bank reputation and credibility
2. ATM locations
3. Extra facilities in salary accounts like zero balance, charges, etc.
4. Other facilities like withdrawl limit, etc.
Regards,
Nikita

From India, Pune
yksoni
1

Thank you Nikita. Actually I want to know the related documents/parameters of employees (for permanent as well as freelancer both) while opening salary acount. Regards, YKSONI.
From India, Delhi
nikitalk
11

It depends on the type of employment. Say if you take someone on contract or retainership for a year you might want to open a salary account because the person might be paid a salary. But if the individual is on a short term contract (3 months) or a freelancer, there would be no salary and only consultancy fees will given to the individual after deducting TDS, in that case, you need not open a salary account with the bank and transfer the amount but instead make a cheque payment.
Hope this helps!
Regards,
Nikita

From India, Pune
leons louis
5

Hi,
The following documents are needed for opening the salary account.
1.Copy of the PAN Card of the Employee
2.Address Proof of the Employee
3.Letter from the company to the banker saying that we have an account with your bank and we would like to open a salary account for the our employees whose names are given under....
4.2 passport size photo of the employee
5.If the employee don't have any PAN then the form60 attached to the salary account opening form should contain the sign of the employee.
6.The address proof can be Passport,Driving License,Voters ID,etc..

From India, Kottayam
shefali.saxena
4

There are few steps while selecting the bank. It’s a corporate decision, check with your finance team. Usually in start up, company ties up with one bank for all financial dealing.
Second step is check what all facilities are being provided for salary account by the bank. Bank will check with you on your requirements, eg. No. of employees, their CTC what facilities are required, location etc, based on this they offer the options. Bank will also inform you what all documentation is required. You need to understand with them on exceptions/ options in case of non availability of relevant documents.
Once these negotiations are over. Bank will ask certain letters/ documentations to be signed by company, before proceeding with formal opening of accounts.

You need to have one point contact/ authorized person to interact with bank and know the relations manager/ contact person in bank for any further communication.
Also, for salary transfer through net, you need to follow the required documentation as required by bank.

From India, Delhi
Anurag Jain
34

Hi Mr Soni,

You have raised a very good issue “Is it necessary employee would be permanent (or freelancer also)”.

Before opening the salary account, few points must be considered:

1. The category of staff to which the account has to be opened:

A. If the staff is a contract staff,
Option 1- Pay through an account payee cheque
Option 2- If the staffs are in large; Open a normal account but not the salary account as you are paying them but the payment will not be interpreted as salary in the books of accounts, hence opening a normal account is more logical.
B. Consultant staff not working on regular payroll:
A normal account can be opened.
C. Salaried or Regular Staff: A salary account may be opened in a bank and as be the best offering from the bank.

The opening of salary account is primary evidence of payment of salary, especially when the payment is not a salary and transferred in the salary account of a staff.

You have to look the documents required by the bank. Some times bank requires a declaration from the employer that the person is an employee of the company. Moreover, the bank account opening forms has to be forwarded by the company. Where the relationship with staff is not in the nature of Employee Employer; then these declarations may create a problem to the organization.

The central point is: If the organization is not willing to keep an employer employee relationship; then is should not be reflected from the papers. When the relationship of Employee exist, the payment of PF/ESI/Bonus and many more arises, therefore think about it and act neatly to protect your organization from the probable legal issues
--------------------------------------------------------------------------------------------------

From India, Jaipur
muralietla
Dear Frnd....
The following documents are required.
i. Memorandum of Association
ii. Articles of Association
iii. Director's Identity proof (PAN Card)
We have recently opened corporate salary accounts with HDFC and their service is very good. They are offering any atm withdrawal & Nil DD Commission. and other good facilities.

From India, Hyderabad
ssgokul
Hi,
As per my company,s agreement with the bank we are not required to give any of the documents (Address Proof )to Bank regarding an employee and all we need to do is to provide a bonafide certificate from authorized signatory of the company stating that he is an employee of the company.
And regarding salary transactions it is always safe to Bank transfer and all you can do is getting a special provision from the bank for opening a Zero fris Account or a Savings account with the same bank for Free Lancers in order to differentiate the Person from the normal salary account.
This can be done by having a personal relationship to the bank.
Cheers.
Gokul Nathan Subramanian
Sr.Executive
Chennai.

From India, Madras
aruna_a4u
Hi all I need a format to refer the employees to the bank for salary A/C.Kindly help me. Aruna.
From India, Visakhapatnam
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.