what is payroll - understanding payroll management!

© 2012 Tally Solutions Pvt. Ltd. All Rights Reserved

PAYROLL MANAGEMENT

© Tally Solutions Pvt. Ltd. All Rights Reserved 2 2 © 2012 Tally Solutions Pvt. Ltd. All Rights Reserved

Introduction

What is Payroll ?

Payroll refers to the remuneration paid to the employees for services they provide during a certain period of time.

Why Payroll?

- To track, calculate and pay the employees for their services rendered

- Tracking statutory compliance of employees

- Cost incurred towards payment of salary should effect the books of accounts – Profit & Loss account


Basic Salary 10,000

House Rent Allowance 3,000

Conveyance 1,000

Bonus 8,000

Variable Pay 15,000

GROSS SALARY 37,000

Canteen Deduction (1,000)

Provident Fund (1,200)

Employee State Insurance (648)

Professional Tax (200)

NET SALARY 33,952

Basic Salary 10,000


Conveyance 1,000

Bonus 8,000

Variable Pay 15,000

GROSS SALARY 37,000





NET SALARY 33,952

Basic Salary 10,000


Conveyance 1,000

Bonus 8,000

Variable Pay 15,000

GROSS SALARY 37,000





NET SALARY 33,952

Basic Salary 10,000


Conveyance 1,000

Bonus 8,000

Variable Pay 15,000

GROSS SALARY 37,000





NET SALARY 33,952

Basic Salary 10,000


Conveyance 1,000

Bonus 8,000

Variable Pay 15,000

GROSS SALARY 37,000





NET SALARY 33,952

Basic Salary 10,000


Conveyance 1,000

Bonus 8,000

Variable Pay 15,000

GROSS SALARY 37,000





NET SALARY 33,952

Basic Salary 10,000


Conveyance 1,000

Bonus 8,000

Variable Pay 15,000

GROSS SALARY 37,000





NET SALARY 33,952

Terminologies used in Payroll

Earnings (Gross Salary)

• Fixed

• Variable

Deductions

• Non-Statutory

• Statutory

Net Salary


Statutory Compliance

Four main Statutory components are :

• Provident Fund

• Employees’ State Insurance

• Professional Tax

• Income Tax

Tax paid by the Employee

Benefits given to the Employee


Provident Fund

Provident Fund

Employers’

Contribution

Employers’

Contribution @ 8.33%

Employers’

Contribution @3.67%

Employees’

Deduction

Employees’

Deduction @ 12%

Benefit to the employees when they retire from Service


Employees’ State Insurance

Employees’ State Insurance

Employers’ Contribution @ 4.75%

Employees’ Deduction @ 1.75%

Protect workers in contingencies such as sickness, temporary or permanent

physical disablement, death due to employment injury resulting in loss of wages

or earning capacity.


Professional Tax

• Professional Tax is a tax on employment

• It is State specific.


Income Tax


Payroll in Tally.ERP9

http://www.tallysolutions.com/website/CHM/TallyERP9/Payroll/Enabling_Payroll_in_TallyERP.htm Visit:

http://www.tallysolutions.com/website/CHM/TallyERP9/Payroll/Enabling_Payroll_in_TallyERP.htm


Bonus & Gratuity

Employee Database

Leave & Attendance

Payroll

in Tally.ERP 9

Income Tax

Loans & Advances

Overtime/Production

Salary Revision & Increments

Professional Tax

Employee State

Insurance

Provident Fund

© Tally Solutions Pvt. Ltd. All Rights Reserved 11 11 © Tally Solutions Pvt. Ltd. All Rights Reserved

Features of Payroll

• Instant Access to Employee Information

• Pay the right amount – On time

• Improve employee satisfaction – manage Increments and Arrears

• On time recovery of loans and advances

• Meet all Accounting and Regulatory norms – instantly

• Payroll and Statutory Reports

Visit: http://www.tallysolutions.com/website/CHM/TallyERP9/Payroll/Enabling_Payroll_in_TallyERP.htm



Instant Access to Employee Information

• Centralised Database for Employees

• Instant access to Personal, Statutory and Expat details

• Manage Employees by Groups, Designation, Location and Shifts etc.

• Complete lifecycle support - Joining to Resignation

• Manage – Attendance, Leave, Overtime and Production details




Pay the right amount - on time

• Salary Calculation as per your specific business needs

• Flexibility to define the method of Salary Calculation

• Payment Advice to bank - for on time Salary Payment

• Email Pay Slips to Employees on click of a button




Improve employee satisfaction

• Handles Salary Revision - both prospective and retrospective

• Instant Arrears Calculation

• Automatic TDS Deduction

• Manage the impact of Salary increment on PF, ESI, Income Tax and PT

• Handle Bonus and Gratuity




On time recovery of loans and advances

• Flexible options for Loan recovery (fixed EMI or User defined)

• Recover Loan while processing payroll or separately

• Facility to track the Loans recovered




Meets accounting and Regulatory norms -instantly

• Integrated with Accounts – saves time

• Compliance for PF, ESI, Income Tax and PT as per the Central and State Government rules

• Payroll and Statutory Forms as per relevant Acts provided




Payroll and Statutory Reports - 1

• Statements of Payroll

• Pay Slip

• Pay Sheet

• Payroll Statement

• Payment Advice

• Payroll Register

• Employee Profile

• Employee Head Count

• Employee Pay Head Breakup

• Pay Head Employee Breakup

• Attendance Reports

• Attendance Sheet

• Attendance Register



• Expat Reports

• Passport Expiry

• Visa Expiry

• Contract Expiry

• PF Reports

• Computation sheet

• Form 5

• Form 10

• Form 12A

• Monthly Statement

• E-Challan Return (ECR)

• Form 3A (both physical and E-return format)

• Form 6A



• ESI Reports

• Form 3

• Monthly Statement

• E-Return

• Form 5

• Form 6

• PT Reports


• Statement

• Gratuity

• Gratuity Summary



• Income Tax


• Salary Projection

• Challan Reconciliation

• Returns

• Form 24Q

• Annexure I to Form 24Q

• Annexure II to Form 24Q

• Form 16

• Form 12BA

• ITR – 1

• E-Return

• E-24Q

• Form 27A


See it in Action


Visit the link below to see Payroll in Tally.ERP 9

Register for a Tally.ERP 9 demo at your place by clicking here


http://www.tallysolutions.com/website/html/register-for-demo-2.php



© Tally Solutions Pvt. Ltd. All Rights Reserved

Thank you

Tally Solutions Pvt. Ltd.

331 - 336, Raheja Arcade

Koramangala

Bangalore - 560 095

Tel : +91 (80) 30282559

Fax : +91 (80) 30287329

Email: [email protected]

what is payroll - understanding payroll management!

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