Need Guidance on Payroll Excel: How Do I Correct PF and TDS Calculations?

Dear Respected Seniors,

For my own learning, I have created a sample payroll sheet that is similar to the payroll file used by the payroll team in my office during the payroll month. I had the chance to take a look at the file, but I am not handling payroll matters as part of my KRA. I request you to please check and correct columns S and T (PF Employee & Employer Contribution), and Column V (TDS) as I am not sure about the formula and calculation to be used. In addition, the payroll team would not bother to have a look at this sample file, and I really want to improve my skills and domain knowledge in the HR industry in the years to come. I would really appreciate your kind feedback. If you suggest more columns, then please do so. Basic Salary and HRA are kept at 50%.

Thanks and Regards,
Akash Sharma
Location: Delhi, India

Correction of Columns S and T (PF Employee & Employer Contribution) and Column V (TDS) in the Payroll Excel Sheet

To ensure the accurate calculation of PF contributions and TDS in your sample payroll Excel sheet, follow these steps:

- PF Employee & Employer Contribution (Columns S and T):
- Ensure that the PF contribution rates are correctly applied. In India, the PF contribution rate is typically 12% of the basic salary for both the employee and the employer.
- Use the following formulas in Columns S and T to calculate the PF contributions:
- For Employee Contribution (Column S): Basic Salary * 0.12
- For Employer Contribution (Column T): Basic Salary * 0.12
- Update the formulas in Columns S and T accordingly to reflect these calculations accurately.

- TDS Calculation (Column V):
- To calculate TDS (Tax Deducted at Source) in India, use the appropriate income tax slabs and rates based on the employee's income.
- The TDS amount can be calculated using the formula:
- TDS = Taxable Income * Applicable Tax Rate
- Ensure that you have the correct taxable income amount for each employee in your Excel sheet and apply the respective tax rates as per the income tax slabs for the financial year.
- Adjust the formula in Column V to reflect the accurate TDS calculation based on the taxable income of each employee.

By implementing these corrections and calculations, you can enhance the accuracy of your sample payroll Excel sheet and further develop your skills in the HR industry. Feel free to explore additional columns or functionalities to expand your knowledge in payroll management.