Understanding Payroll: Can You Explain Its Components and Calculation Process?

Can anyone help me with the details of a payroll for any company? The details should answer questions like: What is a payroll? What are the different components of a payroll? How is it calculated?

Sapan

Dear Saplan,

The basic four components of a salary are Basic, Miscellaneous Allowance, Conveyance, and HRA. PF will be deducted from Basic, while ESI will be deducted from Gross.

Hi, this is Amol Agaskar working for an HR service provider company.

Payroll is an important business function that deals with the process of paying employees for services rendered. The components include:

EARNINGS
- Basic
- HRA
- Conveyance
- Medical Allowance
- LTA (Leave Travel Allowance)

DEDUCTIONS
- EPF (Employee Provident Fund - 12% of Basic)
- ESIC (1.75% of Gross Salary)
- TDS (Tax Deduction)

Dear All,

I need to understand who is responsible for Payroll processing: Accounts or HR. What part is handled by Accounts and HR. Attaching herewith the format where I would request to provide with the information.

Thanks,
Sarika