This is Neeru. I'm into Recruitment (Resourcing). I have a B.Tech degree. I have been working in resourcing for the last year. I want to switch into a corporate role. Can you help me with some topics that I think are necessary for HR?
I request your good help in making the payroll of a company. What steps and points should be considered while making payrolls?
Neeru Bhat, Resource Executive, 9911500321
From India, Delhi
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I request your good help in making the payroll of a company. What steps and points should be considered while making payrolls?
Neeru Bhat, Resource Executive, 9911500321
From India, Delhi
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Hi Neeru,
Payroll is the salary processing system.
Payroll can be seen from two aspects: one from the HR side and the other from the commercial side. The HR personnel process the payroll by sending attendance details or, more precisely, Leave Without Pay (LWP) details, along with all the other information that an employee is entitled to receive in a particular month.
After receiving these details, the commercial team begins entering the information into the payroll software, effectively initiating the salary processing.
While processing salaries for a specific month, we in HR provide complete LWP details to the commercial department.
When calculating LWP, we create an attendance sheet that includes weekly offs. Apart from weekly offs, we track an employee's absences and compare them with leave applications. If an employee has submitted an approved leave application and has sufficient leave balance, we mark them as on leave.
However, if an employee either fails to submit a leave application or lacks sufficient leave balance, we consider them absent for that day and deduct their salary accordingly.
Similarly, if there is a provision to provide one day's extra salary for a specific day when an employee is present, we calculate the additional salary for those employees who were indeed present on that day.
I hope this clarifies the process for you.
Regards,
Amit Seth
From India, Ahmadabad
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508Payroll is the salary processing system.
Payroll can be seen from two aspects: one from the HR side and the other from the commercial side. The HR personnel process the payroll by sending attendance details or, more precisely, Leave Without Pay (LWP) details, along with all the other information that an employee is entitled to receive in a particular month.
After receiving these details, the commercial team begins entering the information into the payroll software, effectively initiating the salary processing.
While processing salaries for a specific month, we in HR provide complete LWP details to the commercial department.
When calculating LWP, we create an attendance sheet that includes weekly offs. Apart from weekly offs, we track an employee's absences and compare them with leave applications. If an employee has submitted an approved leave application and has sufficient leave balance, we mark them as on leave.
However, if an employee either fails to submit a leave application or lacks sufficient leave balance, we consider them absent for that day and deduct their salary accordingly.
Similarly, if there is a provision to provide one day's extra salary for a specific day when an employee is present, we calculate the additional salary for those employees who were indeed present on that day.
I hope this clarifies the process for you.
Regards,
Amit Seth
From India, Ahmadabad
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Dear Amit Sir,
Thank you for the valuable input. However, I believe that some statutory deductions should be incorporated into your input. I would also like to understand the basis on which Professional tax is to be deducted.
Regards,
Rahul Tiwari
From India, Ambala
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Thank you for the valuable input. However, I believe that some statutory deductions should be incorporated into your input. I would also like to understand the basis on which Professional tax is to be deducted.
Regards,
Rahul Tiwari
From India, Ambala
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Dear Amit,
Thank you for providing valuable information regarding payroll. I have a question - if the number of working days is 31 and an employee works only 29 days, should we calculate the salary based on the 29 days worked? If so, how will it affect their basic pay and PF? Could you please explain this with an example if possible?
Sony
From India, Bhopal
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Thank you for providing valuable information regarding payroll. I have a question - if the number of working days is 31 and an employee works only 29 days, should we calculate the salary based on the 29 days worked? If so, how will it affect their basic pay and PF? Could you please explain this with an example if possible?
Sony
From India, Bhopal
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Welcome Rahul and Sony. It's all my pleasure only. 😄
Dear Rahul, statutory deductions will be made based on their salary scales, such as PF, ESI, professional taxes, and others if applicable. Professional taxes vary from state to state and are based on the salary scale. For example, up to 10,000/- it would be rupees 80, and for more than 10,000/- it will be 120/-, or else.
Dear Sony, yes, very true. If one is present for only 29 days instead of 31, then definitely all the salary components would be affected. For example, if someone's salary is 10,000/- rupees and it includes a basic of rupees 4000, then for 29 working days, it will be calculated as: 4000*29/31. PF is contributed based on the basic, so it will definitely affect PF contributions as well.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear Rahul, statutory deductions will be made based on their salary scales, such as PF, ESI, professional taxes, and others if applicable. Professional taxes vary from state to state and are based on the salary scale. For example, up to 10,000/- it would be rupees 80, and for more than 10,000/- it will be 120/-, or else.
Dear Sony, yes, very true. If one is present for only 29 days instead of 31, then definitely all the salary components would be affected. For example, if someone's salary is 10,000/- rupees and it includes a basic of rupees 4000, then for 29 working days, it will be calculated as: 4000*29/31. PF is contributed based on the basic, so it will definitely affect PF contributions as well.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi Amit, Its really worthful info... and i have one more doubt, if company deduct pf and if they not provide any Pf number, then how to get pf details.. Regards, Sandhya
From India, Hyderabad
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From India, Hyderabad
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Thank you, Sandhya! 😄 To know the details of PF, you must ask the person who is handling PF-related issues in your organization. Otherwise, you may consult with the local PF authorities as well.
From India, Ahmadabad
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From India, Ahmadabad
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Rules for Statutory Deductions Exemptions Perquisites-Pay roll.doc