New to Payroll Management: What Are My Key Responsibilities?

Hi friends, I joined an organization where I have been given the responsibility of handling payroll. Can anybody explain what responsibilities fall under the payroll system? Please help me out by sending the details. It is required urgently.

Dear Aruna, first of all, I would like to congratulate you on joining. The responsibility of handling the payroll includes the following tasks:

1. Recording the in-time and out-time of all employees.
2. Deducting PF, ESIC, Income Tax, calculating Overtime, and other deductions.

These are the basic things you need to follow.

Thanks & regards,
Atul Somani

Please include OT, NSA, and reimbursements for employees, if applicable. It is important to keep track of employees resigning as well as those joining the organization.

Regards,
Vignesh. R.

Handling Payroll Responsibilities

• Monitoring all PF and ESIC formalities.
• Designing and implementing employees' salary processing schemes for all employees.
• Daily updating of the employee database.
• Maintaining leave records.
• Releasing the monthly salary payout and salary slips.
• Ensuring timely processing and payment of salaries.
• Generating MIS and tracking methods.
• Preparing required MIS reports for management as per prescribed timelines.
• Updating the Master File on a daily basis and generating Daily/Weekly/Monthly Reports.
• Handling employee database in Excel.
• Managing queries from all Associates regarding Salaries, PF, ESIC, follow-up, etc.

Please feel free to revert in case of any clarification.

Regards,
Shyam Sundar
HR - Executive

Hi guys, can you suggest good software that helps in payroll processing?

Regards,
Vignesh. R
HR Associate

Hi Vignesh, the software depends on your employee strength. There are many payroll software options ranging from Rs. 3000 to 50-60 lakhs.

Regards,
Joseph

Hi Aruna, first of all, I would like to congratulate you on joining as a payroll administrator. Now you have to keep two things in mind:

1. Record the in-time and out-time of all the employees.
2. Handle all the authorized and unauthorized deductions, which include PF, ESI, LIC, membership of unions, HRD, etc.

Thanks & regards,
Aruna

Hi Ravinder, please find the employee database format. The software for HRIS is Adrenalin, and many more.

Regards

Please find the attached file for the format of the employee database in Excel.

Regards

Payroll Details

1) First, calculate the salary days of the month.

2) If your salary is fixed, then the salary formula is: basic/30 * present days (including DA, VDA, HRA, CCA, Education).

3) After calculating the gross salary, deduct PF.

Deductions

- **PF Formula:** (basic + DA + VDA) / 100 * 12 (meaning 12% on basic + DA + VDA).

- **Ptax:** ₹200 for salaries between ₹5000 to ₹10000, and ₹300 for salaries above ₹10000.

4) Deduct salary advance, LIC, and loan form.

5) From the gross salary, deduct the above parameters to get the net salary.

6) **Overtime (OT):** Calculate overtime hours. The formula for overtime is: (basic + DA + VDA) / month days / 8 hrs * OT hrs * 2.

Bonus

- If your organization’s bonus percentage is fixed, then it’s okay; otherwise, as per government rules, the bonus percentage is 8.33%.

- **Formula:** 12-month total (basic + DA + VDA) * 8.33%.

Gratuity

- Gratuity = last 12-month salary / 26 * number of years in service * 15.

7) **Leave Calculation Report**

8) **Half-Yearly Return, Yearly Return**

9) **Manpower Report**

10) **Full & Final Report**

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Get in touch with me.

Have a nice day, dear ARUNA friend.

Dear Aruna,

Congratulations on your new role in payroll. It is an interesting part of any organization. In this role, we keep records of employees regarding their arrival and departure times, which involves time management. We calculate their working hours and overtime, and based on this, we determine each employee's contribution to the company. We then provide them with wages, commissions, and other benefits such as PF, ESI, and various allowances based on their contributions to the company. This encompasses the responsibilities under payroll. The more time you spend in this field, the more you will learn. It is a continuous learning process.

Thank you,
Jeewan

Hi, as you discuss, I am also working as an HR executive. I am responsible for handling the payroll, where I have to monitor the daily attendance, EL, CL, PL, and SL. Additionally, I also manage the absences and leaves of individual employees.

Thank you.

Congratulations on taking on the responsibility of handling the payroll. First, I would suggest that you go through the previous month's payroll-related files or formats of the company you have joined to gain a better understanding. Shyam Sundar has provided all the valid points for you to follow.

Regards,
Sasi Rekha

Kindly advise what exactly is your requirement. Do you want a vendor to maintain your employees' payroll? Do you want to outsource this activity? Please let me know.

Thanks

Hi guys,

I worked as an HR recruiter, but now I want to transition my career into payroll. However, I don't know anything about how to calculate basics like HRA, DA, TA, and how much they should be. Can you provide information on these calculations?

Thank you.

Key Responsibilities of HR in Payroll Management

Some of the duties of an HR handling payroll include:

1. Updating the employee database.
2. Handling attendance, which will be used for computing salary.
3. Processing payroll: accurate salary computation for each employee, considering fixed wages, variable pay, bonuses, and deductions.
4. Releasing payslips every month for all employees.
5. Managing salary revisions.
6. Handling leaves.
7. Processing reimbursements.
8. Managing arrears.
9. Conducting full and final settlements during employee exit.
10. Monitoring all PF and ESIC formalities and more.

All these responsibilities are time-consuming and prone to manual errors. To avoid this, you can check out various payroll software at https://www.greythr.com/in/, which manages all your payroll, PF, TDA, and ESI for your employees.

Regards

How salary is calculated. Basic÷30*present day. If any present 22 day..and leave is 4 days and 4sunday.then how it is calculated bcs if we calculated as his 22present day then wht about his Sundays and leave with pay wages... How include in salary formula as present days r differ from one employee to another employee. Pls help.....give one formula which shud be applicable to all employees.

Understanding Payroll Management

Whether you have a single paid employee or run a small business with many employees, you need to pay attention to payroll. However, payroll involves more than cutting a few checks. Good payroll management is comprised of several different functions that help you properly pay your employees and keep your business compliant with government regulations.

Payroll Responsibilities

1. Processing Paychecks
2. Handling Payroll Taxes
3. Keeping Records (Regular hourly pay rate, hours worked each day, employee's full name, and social security number)
4. Employee Accessibility

The responsibilities that come under handling an organization's payroll system are crucial for ensuring proper payment to employees and compliance with government regulations. Here is a breakdown of the key responsibilities:

- Processing Paychecks: This involves calculating salaries, deductions, and processing payments accurately and timely.

- Handling Payroll Taxes: Ensuring accurate calculation and submission of payroll taxes to the relevant tax authorities.

- Keeping Records: Maintaining detailed records such as regular hourly pay rates, hours worked, employee's full name, and social security number is essential for audit purposes.

- Employee Accessibility: Providing employees with access to their salary slips, ensuring transparency, and addressing any payroll-related queries promptly.

To efficiently manage the payroll system, consider using payroll software to automate processes like salary processing, overtime calculations, and generating monthly reports. Additionally, staying updated on income tax regulations, MIS reports, and maintaining an accurate employee database are essential for smooth payroll operations. For specific guidelines and legal aspects related to payroll management in Delhi, India, refer to the relevant labor laws and taxation policies to ensure compliance.