What is Payroll - Understanding payroll management!

PAYROLL MANAGEMENT

© 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

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

2

Terminologies used in Payroll
Earnings (Gross Salary)
• Fixed
• Variable

Deductions
• Non-Statutory
• Statutory

Basic Salary

10,000

House Rent Allowance

3,000

Conveyance

1,000

Bonus

8,000
15,000

GROSS SALARY

37,000

Canteen Deduction

(1,000)

Provident Fund

Net Salary

Variable Pay

(1,200)

Employee State Insurance

(648)

Professional Tax

(200)

NET SALARY


33,952

3

Statutory Compliance
Four main Statutory components are :
• Provident Fund

Benefits given to
the Employee

• Employees’ State Insurance

• Professional Tax

Tax paid by the
Employee

• Income Tax


4

Provident Fund
Benefit to the employees when they retire from Service

Employers’
Employers’
Contribution

Contribution @ 8.33%
Employers’
Contribution @3.67%

Provident Fund
Employees’

Deduction


Employees’

Deduction @ 12%

5

Employees’ State Insurance
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.

Employers’ Contribution @ 4.75%
Employees’ State Insurance
Employees’ Deduction @ 1.75%


6

Professional Tax
• Professional Tax is a tax on employment
• It is State specific.


7

Income Tax


8

Payroll in Tally.ERP9
Visit:

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


Employee
Database

Payroll
in Tally.ERP 9

Leave &
Attendance

Bonus &
Gratuity

Income
Tax

Overtime/
Production


Salary
Revision &
Increments

Employee
State
Insurance

Provident
Fund

Loans &
Advances

Professional

Tax

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:


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

11

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

Visit:



12

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

Visit:



13

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

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14

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

Visit:



15

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

Visit:



16

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


17

• 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


18

• ESI Reports
•
•
•
•
•

Form 3
Monthly Statement
E-Return
Form 5
Form 6

• PT Reports
• Computation sheet
• Statement

• Gratuity
• Gratuity Summary


19

•

Income Tax
• Computation sheet
• 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


20

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


21

Thank you
Tally Solutions Pvt. Ltd.
331 - 336, Raheja Arcade
Koramangala
Bangalore - 560 095
Tel : +91 (80) 30282559
Fax : +91 (80) 30287329
Email: sales@tallysolutions.com


What is Payroll - Understanding payroll management!

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