Dear Tejaswini,
Payroll is the salary processing system.
Payroll can be seen from two aspects: one is from the HR side and the other from the commercial people's side. The HR personnel process the payroll by sending attendance details, or better to say Leave Without Pay (LWP) details, and other complete information that an employee is entitled to receive in a particular month.
After receiving these details, the commercial team starts entering them into the payroll software, initiating the salary processing.
While processing salaries for a specific month, we in HR provide complete LWP (Leave Without Pay) details to the commercial department.
When calculating LWP, we prepare the attendance sheet with the weekly offs. In addition to the weekly offs, we verify the number of days an employee is absent, how many days of leave they took (cross-checked with leave applications). If an employee has submitted an approved leave application and has sufficient leave balance, we mark them on leave.
However, if an employee has not submitted a leave application or lacks sufficient leave balance, they will be considered absent for that day, and we will deduct their salary accordingly.
Similarly, if there is a provision to provide one day's extra salary for a specific day an employee shows up, we calculate one day's extra salary for those employees present on that day.
I hope this clarifies the process for you.
Regards,
Amit Seth