AKumar’s

PAYROLL MANAGEMENT– Indian Payroll Processing

THE ESSENTIALS -------------------- OF --------------------

(A complete guide book for Payroll & Human Resource-HR)

• Statutory Compliances (PF, ESI, LWF, TDS…)• Payroll Management • Payroll processing at a glance • Indian Salary Taxation

ABOUT THE BOOK

The Essentials of Payroll Management – Indian Payroll Processing, is a fantasy book and professional's book by author Ajit Kumar Yadav. It was published (1st Edition) on 19th February 2014 on his special occasion to wide successfully complete 8 years as Payroll Profession in Services Industry & this edition was published on his birthday 08th August 2015. The book remains popular and has to be recognized as a classic for Payroll profession.

• This book is “user friendly” and will be found useful by any and everyone dealing with Payroll and HR.• The book also contains details Table, Tax Rate & formulas, Excel Formulas and Other Rates & Formulas.• SOLID reference contains a wide coverage of all the information that the Payroll professional require in their day to day practice.• This book makes an exhaustive and comprehensive attempt to explain all the legal provisions and understood calculation related to Salary Calculation & related Payroll in a very easy way.• The book contains an analytical threadbare analysis of all laws and calculation which is related to Payroll & others to its, reader MUST refer the right amendment and clause in the right perspective.

ABOUT THE AUTHOR

Ajit Kumar is a young Indian Payroll professional and associate to public sector in Service industries. He is Certified Payroll Professional (CPP) by NAIP & V-Skill and member of CIPP. He did his graduation from Agra university and Business Management studies from ICFAI. He is doing studies of Company Secretary from ICSI, India. He has been setup and processed Indian Payroll and related compliances at various levels for more than 75 companies in 9 years. CareerHe has started his career in 2005 with BL Life Science and He has been named on Esquire's List of the best performer of the year in January 2006 by BL Life Sciences Pvt Ltd and ranked 1 among the 60 quality Payroll processing in the company on the time by the SGC Services Pvt Ltd. He has been worked at various levels for reputed originations and has 10 years wide experience in payroll, compliance and compensation management.

Current ventures and BusinessHe is founder of IPTM - The Institute of Payroll Training and Management, which was found in the year 2007 and proprietor of HeyParth Consulting Services, which was setup in September 2014 and is running at Noida HITEC City of India.

Author can be reached at : iptm.india@gmail.com

Inspired by Bhagavata Purana

With Krishna Bhakti

Dedicated to My ParentsLate Shree Ajab Singh & Late Mrs. RajBati Devi

“I am the source of all spiritual and material worlds. Everything emanates from Me. The wise who perfectly know this engage in My devotional service and worship Me with all their hearts”

(Lord Krishna, Bhagavad-Gita 10.8)

ThanksI thank you all from the bottom of my heart!

Special Thanks Guru Ram Kumar Sharma

CA Rajesh Mittal Dr. Roopak Vashishtha

Late Shree Gaurav AggrawalDivik Varshney

Sanjay (Pappy) YadavMembers of Kamini and Kamine group.

Dear Reader, Thank you for choosing The Essentials of Payroll Management – Indian Payroll Processing. This book is part of syllabus of IPTM - The Institute of Payroll Training and Management as well you’re Payroll Profession, all of which are written by Ajit Kumar who combines practical experience with a gift of Payroll Training.   I’d be very interested to hear your comments and get your feedback on how we’re doing. Feel free to let me know what you think about this book by sending an email at ajityadav121@gmail.com. If you think you have founded any technical or typing sentence error in this book, please visit http://iptm.org.in. Customer and readers feedback are critical to your efforts at IPTM. Thanks you!

Best Regards,

Ajit KumarCEO & Founder

The Institute of Payroll Training and Management – iptm.org.in

In this section we will cover 20 chapters

even will learn more…

PART A : OVERVIEW OF PAYROLL MANAGEMENT

Chapter 1 The Role of Payroll Department in an Organization

Chapter 2 Income Under The Head Salaries u/s 17(1) of Income Tax Act, 1961

Chapter 3 Salary Components in terms of Fixed and Variable

Chapter 4 Claim and Reimbursement Management

Chapter 5 Attendance Management System and Resignation (Full and Final) of Exits

PART B : PAYROLL PROCESSING AND REPORTS

Chapter 6 Gather Payroll Inputs, Setup Employee’s Information in Payroll System

Chapter 7 Compliances rule & Tax Rates and Determine Calculation & Deductions

Chapter 8 Verification and Payroll Checking Step by Step

Chapter 9 Salary Register, Pay Slips, Bank Transfer and MIS’s

Chapter 10 Prepare Statutory Reports PF, ESI, PT, ESI and TDS Form 24, Form 16 etc.

PART C : TAX SAVING - DEDUCTIONS AND EXEMPTIONS

Chapter 11 Deduction (u/s 80C - u/s 80U) of Chapter VI-A of Income Tax Act, 1961

Chapter 12 Validation or Examination of Investment Proofs and Reimbursement Claims

Chapter 13 LTA, HRA, Leave Encashment and Gratuity Exemption Calculations

Chapter 14 Deduction of Entertainment Allowance and Professional Tax

Chapter 15 Deduction of Interest on Housing Loan u/s 24(b) of Income Tax Act, 1961

PART D : STATUTORY COMPLIANCES AND THEIR COMPUTATION

Chapter 16 Employee Provided Fund – PF

Chapter 17 Employee State Insurance – ESI

Chapter 18 Professional Tax – PTAX

Chapter 19 Labor Welfare Fund – LWF

Chapter 20 Tax Deduction at Source - TDS

Important (Practice F2F)

Appendix The Bottom line (Questions and Answers)

Forms Important Forms and description of Forms and Returns

Bibliography Sources, Referenced, Titles of the works, website and Tables

let's learn payroll

L L P

What is The Payroll?

A sum of amount that a company does pay to its employees for doing their job service in a organization is called Payroll.

But

Payroll definition can’t be complete without given description of gross payments, gross deductions and actual net payout to an employee in a calendar date and noted that these Payments and Deductions can calculate according to rules and laws which may be differ organization – organization and state to State.

Payroll का मतलब = कुल वेतन भुगतान, भुगतान रजि�स्टर

Payroll is an important part of financial accounting.

In accounting, payroll is important because payrolls (payroll pay, taxes Deductions) greatly affect the net income of most companies. Payroll is also often subject to numerous laws and regulations that companies need to cooperate with.

Of course, payroll is also incredibly important to its recipients: the employees of a company. Employee morale can be negatively affected by errors and irregularities in payroll, so an organization must distribute payroll in an appropriate and precise manner.

Understood: Payroll is essential to a company’s financial accounting for many reasons.

Download Payroll Notes of AKumar’s From www.thepayroll.in

Mainly A Payroll Management Module includes

Organization Management

Payroll Management

Employee Help Desk

Performance Management

Leave & Loan

Recruitment & Training

PF, ESI, TDS, Statutory compliances

Appraisal & Career Mgmt.

Reimbursement

Employee Self Service

Attendance Processing

Arrear & Bonus

Retirement

Final Settlement …. more

FUNCTIONALITY OVERVIEW – PAYROLL

FUNCTIONALITY OVERVIEW – PAYROLL PROCESS MODULEFeatures Utilities User Definable Earnings / Deductions with multiplePayment units Cost Center, Designation & Grade wise Salary Inputs Employee Master Auto Number Generation Formula Inputs Attendance & Leave, Over Time Details Loan / Insurance details PF Register, ESI register Income Tax (TDS) & e-TDS JV Passing, Reconciliation email – Salary slip Employee Reporting Hierarchy Input Wizard & Simulation Process, Screen wise User Editable Help Arrears Computation Bonus Computation

Final Settlement / Gratuity Leave Encashment Reimbursements Comprehensive Income Tax Data Ownership (user wise) Locking of Pay Process Locking of Inputs Backup and Restore Import Data From Excel & Export to Excel Recruitment, Appraisal & TrainingReports Monthly pay slips Monthly salary report Salary disbursement sheet & Journal Voucher Bank covering letter Leave statement Outstanding loans Arrears salary statement, Leave details and Leave register

Bonus statement Statutory forms & returns Monthly ESI statement Provident fund report Monthly journal reports Form 16 & Form 24 MIS reports Highlights User Definable Pay Periods – (Monthly, Weekly etc.) Any number of Payment Processes can be defined(Overtime payments, Reimbursements etc.) User definable Pay slip format & Separate Pay-Slipsfor the defined payment process computation formula Supplementary payments History of employee information and pay structure Generates Cash / Bank advice statements

Extensive covering of all the tax rules related to TDS Loan details and maintains current balances Utility for bulk loan issue Easily integrated with Attendance recording systems User definable custom reporting and querying facility Electronic bank transfer Pay slip Mailing Customizable for any future changes in pay structure e-TDS, Form 3A -DBF conversion Declaration forms for ESI and PF, CTC Statement, ESI & PF challan, Custom Query Builder for Report, Multiple Group creation for PF, ESI & Tax Multi User creation & PrivilegesAttendance Processing System

Pro video @ INR 3999

Call Now + 91 9654421288, Buy full tutorial video

Payroll in India was once upon a time (before 10 - 15 years) considered to be part of Accounts Department. Those are the days when payroll was seen as a mere compliance function and also as finance/accounting function as money was involved. Performance appraisal was more a ritual done once in a year and performance was not adequately related to pay. Moreover, Accounts personnel were the only people considered to be fit for doing statutory compliance related jobs such as PF and ESI jobs in an organization.

In countries like US, even before 15 years Payroll was treated as part of the Compensation & Benefits Management, which is basically HR function. Payroll, as you can see, is only an event, which is happening at a frequency as may be stipulated by the country/company rules, and is guided by the policy on Compensation & Benefits Management program of any company. Other countries gradually adopted the concept.

Payroll is also a sensitive matter as employees may have queries when they receive their PaySlip. Not to generalize, Accounts personnel are not very much the right persons to have the kind of human relations skills to answer such queries with empathy and patience. So, Payroll also became a matter of human relations over years when employees mattered.

Another reason is the salaries have become more and more linked with employee performance and retention with a substantial part of salary paid as performance-linked incentive. Performance Management being the HR function, payroll management in a performance-oriented reward system has become HR function.

Accounts department mainly performs a control function and is therefore made as bottleneck. A bottleneck approach is not the right approach when you need to reward people's performance in a dynamic business environment. So, the payroll function has been transferred to HR to make it stay nearer to the people of the organization so as to respond quickly to the employees' queries and performance. Of course, Accounts will ultimately monitor the expenses and give their advice regarding any lapse in controls through audit and other tools.

If HR is not handling payroll with a difference and with what purpose it should handle this function, then it does not matter if Accounts handles it or HR handles it.

“Self creation is become you most dedicated.” - A Kumar

Institute website

www.iptm.org.in