Hr Practices
Sirisha Reddy
Hr Executive
Management Consultant
+1 Other

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Hi, I would be very grateful if an any one of you can give me the details of payroll management. what all includes in this and much more information on how to work in this side of HR. Sirisha Reddy
From India, Bangalore
Hi Sirisha...

Payroll is the salary processing system.

Payroll can be seen from two aspects. One is from HR side and other from commercial people side. The HR persons process the payroll by means of sending attendance details or better say LWP details and other complete details that an employee is going to get in a particular month.

And after receiving those details the commercial people start making entry into payroll software and can be said start salary processing.

Well while processing salary fro a particular month we the HR personals provide complete LWP (Leave without Pay) details to the commercial dept.

While calculating LWP, we prepare the attendance sheet with teh weekly offs. And apart from weekly offs we check how many days an employee is absent, out of which how many days he was on leave that we crosscheck with leave applications. If the particular employee has given the approved leave application form and that leave is been there in his account then we put him on leave.

But If the person has not submitted the leave application form or he doesn't have any leave in his balance then for that particular day that employee will be assumed absent, and we will deduct his salary for that day.

Similarly if there is any provision to provide one days extra salary for an specific day if the employee does come, then we calculate one day extra salary for those employees who were present on that day.

I hope now it will be very much clear to you.


Amit Seth.

From India, Ahmadabad
I agree with Amit that attendance and LOP are the major factors in Pay roll.
The advantages of software payroll as compared to the mannual are:
1. Mannual data entry and calculation with the calculatoe is eliminated.
2. Employee data is entered one time and if any changes are made - incremenr, promotio, demotion, etc.,
3. Monthly inputs of entering no. of days salary is payable in case of LOP or absenteeism only. in case of full attendance and full salary is payable, the system by default without entry shall calcluate the salary payable.
4. The other important factor is various allowance as per the packages are calculated and all deductions are also calcualted and the systems delivers net salary payable. Certain complicated allowance such as HRA for full month in case of LOP, etc., are calculated.
5. It generates pay slips and bank statements.
6. Compliance inrespoct of statutory returns ans records are also taken care of.
S, Srikumar

The input given by our members Shrikumar & Amit is very right.
The Payroll is a dept. which generate salary and does the Tax calculation for all the employees in the organization.
The HR and the payroll works hand in hand. The salary intimation is given by the HR to the payroll dept. according to the cut off date.
The intimation consist on LWP, new joinees, increment , promotion ,transfer , internal company transfer, bank account no,salary on hold intimation when an employee resigns. etc.... any other intimation.
Tax part is done by the payroll, like tax declaration forms, form 16 .
Once the intimation is given to the payroll dept. they do the data entry , checking and then the salary is processed and according to the funds availability the salary is released to the individual salary account by the first week of the month.
I hope this will help you to understand.

From India, Mumbai
my query is , how to rectify the decimal problem from payroll becoz it give amount diffrence what we preapare and what we tranfer to bank account .. please help ... regards anu
From India, New Delhi
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