Hi , i prepared one Full & Final Settlement format. all are requested to check and give me your valuble feedback if any..... according to that i can update it. Thanks, :D
From India, Hyderabad
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4From India, Hyderabad
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Hi Swarup,
This format has come out very well. I am sure you may have done a lot of research before preparing it. You have almost covered all the necessary aspects for F&F settlement. I am not sure whether your company has LTA, Medical Allowance, and Hospitalization claims for their employees. In general, Medical Allowance up to Rs.15,000/- is exempted from tax, so many companies pay it separately and do not show it on the pay slip.
If LTA and Medical allowances are provided, then the balance amount of LTA and Medical should be reflected in the format. One more thing, you have shown 'reversal of PF Deduction' from the salary, which means you are refunding the deducted PF amount to the employee. In general, and also in our company, we never refund the PF amount once deducted from the salary, even when the employee is leaving us.
I am attaching another format just for your reference. Overall, good work done!
Regards,
Mustaq
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This format has come out very well. I am sure you may have done a lot of research before preparing it. You have almost covered all the necessary aspects for F&F settlement. I am not sure whether your company has LTA, Medical Allowance, and Hospitalization claims for their employees. In general, Medical Allowance up to Rs.15,000/- is exempted from tax, so many companies pay it separately and do not show it on the pay slip.
If LTA and Medical allowances are provided, then the balance amount of LTA and Medical should be reflected in the format. One more thing, you have shown 'reversal of PF Deduction' from the salary, which means you are refunding the deducted PF amount to the employee. In general, and also in our company, we never refund the PF amount once deducted from the salary, even when the employee is leaving us.
I am attaching another format just for your reference. Overall, good work done!
Regards,
Mustaq
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Thank you so much, Mr. Mustaq and Vijay!
Dear Mr. Mustaq,
Thanks for your keen observation. You see, once the format, the Reversal of PF Deductions cell is linked with "F24". In some organizations, especially hospitals, there is no deduction for consultants in the above 55 age group staff. For those, it can apply.
FYI,
Swaroop
From India, Hyderabad
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Dear Mr. Mustaq,
Thanks for your keen observation. You see, once the format, the Reversal of PF Deductions cell is linked with "F24". In some organizations, especially hospitals, there is no deduction for consultants in the above 55 age group staff. For those, it can apply.
FYI,
Swaroop
From India, Hyderabad
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Hi Swaroop and Mustaq,
Nice work! I was in need of such a statement, and I got it through your posting. However, Swaroop, in almost every organization, LTA is paid as a yearly component, which is not included in your format. I think the same query was raised by Mustaq.
Anyways, thanks for the nice posting.
Shweta
From India, Mumbai
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Nice work! I was in need of such a statement, and I got it through your posting. However, Swaroop, in almost every organization, LTA is paid as a yearly component, which is not included in your format. I think the same query was raised by Mustaq.
Anyways, thanks for the nice posting.
Shweta
From India, Mumbai
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Dear Thiyagaraj,
Thank you for your response. Basically, after the submission of the resignation letter duly approved by the concerned Reporting Authority/Head, we will proceed with the Exit Interview or No Dues formalities (As per Org Rules/Reg/Procedure). Once the employee's accepted resignation letter is received by HRD, the next procedure is the Exit Interview, followed by the No Dues process. Based on that, HR can prepare the Full and Final settlement (As per my knowledge). After everything is completed, HR will close the file along with a set of the following. (HR professionals are requested to educate me in this regard):
1. Accepted Resignation letter
2. Exit Interview
3. No Dues Certificate
4. Copy of Issued Service Certificate/Relieving Letter
5. Payslip of the Current month
6. Full and Final Settlement
7. All documents of the Employees' service file
Thank You,
Swaroop
From India, Hyderabad
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Thank you for your response. Basically, after the submission of the resignation letter duly approved by the concerned Reporting Authority/Head, we will proceed with the Exit Interview or No Dues formalities (As per Org Rules/Reg/Procedure). Once the employee's accepted resignation letter is received by HRD, the next procedure is the Exit Interview, followed by the No Dues process. Based on that, HR can prepare the Full and Final settlement (As per my knowledge). After everything is completed, HR will close the file along with a set of the following. (HR professionals are requested to educate me in this regard):
1. Accepted Resignation letter
2. Exit Interview
3. No Dues Certificate
4. Copy of Issued Service Certificate/Relieving Letter
5. Payslip of the Current month
6. Full and Final Settlement
7. All documents of the Employees' service file
Thank You,
Swaroop
From India, Hyderabad
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Hi Swarup,
Nice details on Full and Final Settlement.
Also, you can add one column for No Dues related to Companies' Accessories like laptops, mobile phones, etc., that were provided during employment. This information can be obtained from the respective department heads.
Regards, Rachna Sinha
From India, Hyderabad
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Nice details on Full and Final Settlement.
Also, you can add one column for No Dues related to Companies' Accessories like laptops, mobile phones, etc., that were provided during employment. This information can be obtained from the respective department heads.
Regards, Rachna Sinha
From India, Hyderabad
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Dear Swarup,
Nice work. A few things I think should be included in F & F and supporting documents:
1. You should include one column for Previous Tax-free Privilege Leave received.
2. Previous Tax-free gratuity received.
As there is a lifetime Tax-free limit for Leave encashment and Gratuity, i.e. $300,000 and $350,000 respectively, it will help you calculate the accurate tax liability of the employee. Otherwise, in IT assessment, the company may have to face some problems.
In supportings, you should collect all his investment proofs as per his declaration to calculate the tax liability. You can't calculate the tax without proof or based on the investment declaration while doing F & F.
Regards,
Chetan
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Nice work. A few things I think should be included in F & F and supporting documents:
1. You should include one column for Previous Tax-free Privilege Leave received.
2. Previous Tax-free gratuity received.
As there is a lifetime Tax-free limit for Leave encashment and Gratuity, i.e. $300,000 and $350,000 respectively, it will help you calculate the accurate tax liability of the employee. Otherwise, in IT assessment, the company may have to face some problems.
In supportings, you should collect all his investment proofs as per his declaration to calculate the tax liability. You can't calculate the tax without proof or based on the investment declaration while doing F & F.
Regards,
Chetan
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Hi,
Very useful information. One suggestion:
In the declaration part, I __ TOTAL AMOUNT (PAYABLE / RECOVERABLE) Rs.: ______- received/paid amount towards my Full & Final Settlement as mentioned above. I have also checked this statement thoroughly and declare that no further complications/complaints regarding this settlement.
Can you provide the link to TOTAL AMOUNT (PAYABLE / RECOVERABLE) Rs.:
Thanks
From India, Madras
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Very useful information. One suggestion:
In the declaration part, I __ TOTAL AMOUNT (PAYABLE / RECOVERABLE) Rs.: ______- received/paid amount towards my Full & Final Settlement as mentioned above. I have also checked this statement thoroughly and declare that no further complications/complaints regarding this settlement.
Can you provide the link to TOTAL AMOUNT (PAYABLE / RECOVERABLE) Rs.:
Thanks
From India, Madras
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Hi,
I am working in an Engineering College where we have received an advance for remuneration purposes from the University. We need to settle the account for this advance. I have prepared the account in Excel and have tallied it. Now, I need to enclose a covering letter for this purpose. Can you please guide me on how to draft the letter?
Thank you.
From India
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I am working in an Engineering College where we have received an advance for remuneration purposes from the University. We need to settle the account for this advance. I have prepared the account in Excel and have tallied it. Now, I need to enclose a covering letter for this purpose. Can you please guide me on how to draft the letter?
Thank you.
From India
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Dear Swarup,
You have come out with a really nice and perfect form. I also used the same in my earlier company. As discussed by other friends, the reversal of PF is confusing for me. Otherwise, you can use it.
Regards,
Hrushikesh
From India, Mumbai
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You have come out with a really nice and perfect form. I also used the same in my earlier company. As discussed by other friends, the reversal of PF is confusing for me. Otherwise, you can use it.
Regards,
Hrushikesh
From India, Mumbai
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Full n final settlement.doc