A. Payroll fundamentals
To
gain an understanding of various aspects of payroll module please go through
the following articles -
1. Scope of payroll - gain an understanding of the types of employees which are covered in payroll
2. Design of salary - what are the different components of salary structure and what are the tax
implications
3. Understanding tax implications - refer to this article to understand the various types of tax free heads
4. Flexi-pay / Flexible benefits - if you want to allow employees to design their own salary then this option
needs to configured
5. Payment of Overtime - how to pay overtime to employees
6. Payment of Gratuity - details on payment of Gratuity
7. Payment of Bonus - managing payment as per Bonus act
8. National Pension Scheme - how to setup and use NPS option
9. Managing perquisites - some perks and loans if given attract perquisite tax
10. ESIC - managing deductions under Employee State Insurance rules
11. Multiple country payroll and changes in employee's location - if the employee is transferred from one location to another some cases his
status changes from local to expat or even within a country there might be different
laws at the state level
B. Setting up the system
To
understand how to setup the payroll module please go through the following articles
1. Payroll setup – this is the overview article which further gives the links to each section
2. Uploading year to date data - if payroll system is being initialized from middle of year then you will need
to upload historical data
C. Processing payroll and associated activities
Activities
to be done during payroll processing are covered in the articles given below
-
1. Payroll process overview - This article summarizes and gives links to further articles explaining the
activities needed to be done during the monthly payroll run
2. Payroll reimbursements – this process is use for claim reimbursements like Fuel, LTA etc. Employee can
claim their amounts through the portal and upload supporting documents
3. Full and Final processing – this process is use for separation to employees which are working in organization
4. Quarter / Six month / Year end processing – some challans have to be submitted
at the end of quarter, six months or year. These are created by the Payroll Manager
as per requirement. The end of tax year processes include unclaimed reimbursements,
net tax deductions, annual payments are managed and the setup for the next year
is prepared
5. Tax Saving Declarations and Tax Saving Submissions – there are various components like House Rent, VPF, Tax Savings, Medical, LTA
which can be used by the employees to save tax. Tax is calculated on declarations
for the year till Jan / Feb period after which the employee is expected to submit
proofs
6. Updating payment details - once payments are made to the Government the details need to be updated back
in payroll module, these details are needed for subsequent generation of compliance
documents
7. Managing Loans and Advances - loans can be given and an instalment deducted from monthly payroll. Loans can be with or without interest and can have perquisite tax linked to them
D. Third Party Services
1. Marketplace Overview
2. Applying for a loan through EarlySalary
3. Applying for a loan through KreditBee