Components Of Payroll

Hi everybody,
I hav an interview scheduled aftr 2 dys and so wntd 2 knw about Payroll.
What is Payroll and what r its components?
Can anybdy help me!
Plz i'm waiting.
Pali

Hi pali,]
Payroll is a method used in organizatuions for employees salary processing. HR always have the information of the employees attendance. So, in the excel sheet, you have the employees ID and names and the nuber of workingdays in that month and number of days each employee has attended the office. So, after doumentuing this, youi wil forward the HEAD COUNT to accounts dept. Account dept holds the salary steructure of each empoyee and depending on the information you fiorwarded, they will caluculate the salary of each employee and get them credited to their respective bank accounts.
Hope this information will hwelp you.
Regards,
Kiran.

Hi Pali,

Payroll is divided in two parts viz

Monthly payroll which includes the following

* Basic salary

* HRA

* Conveyance

* Special allowance

Annual payroll

* Medical Reimbursement

* LTA

* Meal Vouchers



In payroll on monthly basis - monthly break up is paid and is subject to the following deductions viz:-

Monthly payroll

minus -

Provident Fund which is 12% of basic salary

Profesional Tax

Income Tax -

Other deductions - which can be loan or advance etc.

Net take home - Rs ....



To answer your query on Payroll please note tha following points:

a. Payroll is nothing but the salaries / breakups of the same of the employees in the organisation

b. Payroll will consist of (normally) the Employee Code no. / Name / Date of joining / No. of days worked (30 or 31 depending on the month) + Basic Salary + allowances (depending on thhe no. of components ) =Gross Salary

c. From the Gross salary there will be deuctions ranging from the statutory deductions like PF / ESI where applicable/ Profession Tax / Income Tax where applicable / Loan taken by employee (this is internal)= NET SALARY

This is what payroll is.

Thanks

dsv

Hi
components of pay roll
Basic salary(Basic Wage+DA+Retaining Allowance)+
HRA 10-40% of the basic depending on the industry and sector+
Other Factors+
Medical+
convence+
other allowance = [b]gross salary
Deductions On behalf of the employee
(12% of the basic wages(PF)+
1.75% of the gross salary(ESI)))
gross-deductions= net in hand
additions on behalf of the employer
12% of the basic wages(PF)+
4.75% of the gross salary(ESI)))
gross+ additions = CTC
With Regds,
Kapil Kaushal

Where do Super Annuation and Gartuity be included?. Gross Salary side or Benefits side?. Do they form part of CTC?

hi, Pali
That was complete details for payroll management.. Can you tell me what all things to be taken care when submitting a quotation for Off roll payroll management.
With regards
Mithesh

Hi dsv,
The payroll which you have explained was very helpful.
now friends can anyone please explain me how basic, HRA, conveyance etc are calculated out of CTC.
Its Urgent.
Regards,
Neha.

You may check this payroll resources. Accurate information on payroll processing including salary structuring, ESI, EPF, PT, IT etc...at one place

hi sree kumar,
thank u for u great help in this regards to letting me know info abt the payroll resources.
it was really nice in this regards....
with regards,
sujit kumar...