Human Resources are the important assets for any business, So it becomes necessary to take at most care of them. The important aspect of Human Resource is the payment we make them by way of Salary, meet compliance requirement and do basic tax planning for employees, these bundle of services known as “Payroll Management”.
In this article, we will discuss about...
What is payroll?
Its meaning can vary in different settings. Generally, payroll refers to the list of employees getting paid by the company. It can be viewed as money given by the company as salary.
What is payroll management?
The important aspect of Human Resource is the payment we make them by way of Salary, meet compliance requirement and do basic tax planning for employees, these bundle of services known as “Payroll Management”.
Payroll management includes some components.so here a question arises what comes under payroll management?
Payroll management can be broadly divided into two heads.
- Salary calculation:- It will be as per the CTC offered by the Co to employee
- Compliance with the statutory liability arising relating to employees salary details of which is provided herewith
The assessed has to meet the following compliance as per the respective governing laws:-
| i) | Profession Tax (PT) : |
| It differs State to State. Every employer has to deduct the PT from employees salary as per slab and deposit the same with government | |
| ii) | Provident Fund (PF): |
| The employer is required to deduct PF (If applicable) from the Basic Salary @12% | |
| Also, the same amount is contributed by the employer for the employee | |
| iii) | TDS |
| As per IT Act, the employer has to deduct TDS from the salary of employee and deposit with the government within due dates | |
| iv) | ESI |
| ESI is to be deducted @1.75% from the Gross salary of the employee if the gross salary is Rs.15000/- or less | |
| The employer also contributes to the same @ 4.75% for employee | |
| V) | Others: |
| A | Gratuity |
| As per Actuarial Calculations, the employer has to provide for the Gratuity provision | |
| B | Leave Management |
| Calculation of leave availed, pending and making provision for Leave Encashment | |
| C | Calculation of Leave Travel Allowance as per IT Act |
What is a payroll management system?
We can say the payroll management system deals with the financial components of a person employed in a company. The system calculates how much working time or hours an employee has to give to the company. It considers his salary, allowances, and deductions and makes sure hassle-free functioning of the money matter of the person.
Why is Professional Payroll Management important?
As explained earlier the professional payroll management ensures that apart from the timely and accurate calculation and disbursement of salary, the payroll management should also ensure that the compliance with related legal provisions and tax planning for employees so that employees can receive the maximum in-hand salary post-tax.
Services provided by us:-
- Complete Payroll outsourcing
- Payroll Compliance management
- PT, PF & ESIC Services
- Payroll Audit