It seems you want to have the conceptual understanding of Payroll. Payroll is a system by which the employers pays salaries to the employees.The Payroll process involves the following procedure.
1) Collecting salary/pay details of employees.
2) Calculating statutory deductions like PF. ESI, Labour Fund, Income Tax Professional Tax etc. to be effected from the gross salary as well as non statutory deductions like loan installments or insurance premia at the request of the employees or leave on loss of pay etc..
3) Arriving at net pay to be paid to employees after the statutory deductions.
4) Crediting net pay to the bank accounts of the employees.
5) Depositing the statutory funds deducted from employees salary in the respective statutory accounts/ govt. treasury as the case may be.
6) distribution of salary slips to employees
7) Attending to full and final settlement cases in case of employees leaving the organisation.
Any other view welcome.
B.Saikumar
HR & Labour Relations Consulatnat