Payroll Management

1. PAYROLL MANAGEMENT

2. BY THE END OF THIS SESSION, WHAT WOULD WE LEARN
● What is Payroll Management?
● Why is this skill important?
● Key Components of Payroll
● Reference Material

3. WHY IS THIS SKILL IMPORTANT
▪ Determine Compensation
▪ Increase Morale
▪ Maintain Company Reputation
▪ Re-allocation of resources

4. WHAT IS PAY POLICY
A pay policy is a set of principles and directives to regulate employee
remuneration.
The main reason to design an internal pay policy is to align with company
strategy and objectives such as attracting and retaining talent; satisfying
financial needs of workforce and guarantee fair pay.

5. WHAT TO CONSIDER WHILE CREATING PAY POLICIES
Company location
Collective agreement
Company’s financial situation
Teams/Departments within the company
Individual employee circumstances
Employee effort
Salary range
Employment policies

6. WHAT IS PAYROLL MANAGEMENT

7. WHAT IS PAYROLL MANAGEMENT
A payroll management system is the process by which
employers pay wages to their employees. It’s also how they
demonstrate their commitment to their workers, fulfill their
obligations to government agencies and keep financial records
in order

8. PHASES OF PAYROLL MANAGEMENT
● Pre-payroll
● Calculations
● Post-payroll

10. COMPONENTS OF PAYROLL
● Basic Salary
● House Rent Allowance (HRA)
● Provident Fund (PF)
● Special Allowance
● Bonus
● Professional Tax (PT)
● Tax Deducted at Source (TDS)

12. COMPONENTS OF PAYROLL
Gross Salary: Basic Salary + HRA + Other Allowances
Net Pay: Gross Salary – Income Tax – EPF Contribution – PT
(Professional Tax)
CTC (Cost to Company): Basic Pay + Allowances +DA+HRA+PF
Taxable Income: Gross Salary – EPF/PPF Contribution – Tax-free
Allowance – HRA – LTA – Health Insurance – Tax-saving
Investments – Other Deductions

13. CHALLENGES FACED DURING PAYROLL PROCESSING
● Complexity of Tax Regulations
● Compliance Issues
● Data Accuracy and Security
● Employee Classification
● Overtime Calculations
● Integration with other systems
● Record Keeping and Documentation
● Global Payroll Challenges
● Technology Limitations
● Communication and Employee Relations
● Changing Workforce Dynamics
● Audit and Reporting Requirements

14. SOLUTIONS
● Invest in payroll software
● Stay informed about regulatory changes
● Implement a centralized payroll system
● Employee training
● Data security measures
● Regular audits and reviews
● Employee classification review
● Automate time and attendance
● Adapt to changing workforce dynamics
● Documentation & Record keeping

15. REFERENCE MATERIAL
Form 24Q
This form is essential for filing returns on tax deducted at
source from salary payments. Employers must submit it
quarterly, detailing the salary payments and corresponding
TDS deductions.
https://www.tankhapay.com/blog/wp-content/uploads/
2023/10/Form_24q.pdf
Form 12B
Employers use Form 12B to inform employees about their
income details when they join mid-year, ensuring clarity in
tax calculations
Form-12B.pdf
Form 12BB
Employees declare their tax-saving investments for a
financial year in Form 12BB, aiding accurate tax deductions.
Form-12BB.pdf
Form 15H and Form 15G
These forms are for senior citizens and others to file Income
Tax Returns for one financial year.
Form-15H-and-Form-15G.pdf
Form 16 and Form 16A
Form 16 signifies TDS deductions from salary, while Form
Form-16-and-Form-16A.pdf

16. REFERENCE MATERIAL
Form 16B
Employed in property transactions, this certifies TDS on
income earned from the sale of immovable property..
Form-16B.pdf
Form 10C
Claiming benefits under the Employee Pension Scheme
(EPS) involves filling and submitting Form 10C.
Form-10C.pdf
Form 26QB and Form 26AS
Form 26QB is for TDS payment, while Form 26AS (Tax Credit
Statement) maintains tax credit details for each taxpayer.
Form-26QB.pdf
Form 27C This document aids in obtaining tax exemption
from TDS, applicable to specified goods as per the Income
Tax Act.
Form-27C.pdf
Form 24G Employers use Form 24G to submit information
regarding TDS for various individuals, including non-
Form-24G.pdf

17. REFERENCE MATERIAL
Form 64A
It contains the statement of income paid or credited by
Venture Capital Companies and Funds, as per the Income
Tax Act.
itr62form64a.pdf
Form 12BA
This detailed statement showcases perquisites, fringe
benefits, and profits in lieu of salary.
Form-12BA.pdf
Form 27EQ
This quarterly certificate outlines Tax Collected at Source
(TCS) under Section 206C of the Income Tax Act.
Form-27EQ.pdf
Form 49B
Employers apply for a TAN (Tax Deduction and Collection
Account Number) using Form 49B, which is necessary for
tax deductions and payments.
Form-49B.pdf

18. THANK YOU