Accounting refers to the systematic and detailed recording of financial transactions of a business. They may be of various types ranging from accounting for small businesses, government, forensic, management accounting, and accounting for corporations. Payroll training enables the attendants to understand the minute details of Payrolls and manage payrolls perfectly. It includes maintaining data of employees, basic pay, allowances, and various deductions from the salary of employees.
What is Payroll?
Payroll is an important function of any organization in which a record of employees is maintained which generally includes the amount of salary being paid to them and deductions being made.
Main components of the Payroll:
Gross Salary and Wages:
This is the total amount to be paid by an organization to an employee over a period of time. This may include basic salary and allowances before deduction to be made from it.
Benefits and Allowances: Allowances may include HRA, dearness allowance, travel allowance, children’s education allowance, medical benefits, and transport allowance. Some organizations give other benefits to their employees that include health insurance, car maintenance allowance, meal vouchers, target-based incentives, and bonuses, etc.
Deductions: Generally, the following type of deductions are made from gross salary:
Provident Fund (PF)
Employee State Insurance (ESI)
Professional Tax (PT),
Loans and advances
Payroll Processing may include the following steps:
Determine the pay structure: Pre defines the structure of pay and annual or biannual increments to be paid to the employees.
Collection of Information: Collect data from all the employees.
Validated the Information: Validate the data collected from various sources.
Process the information and release the salary: Process the payment and release it on a pre- decided date
Deposit of Tax and other deductions: Deposit the deducted amount from the account of the employees to the concerned departments like the income tax department and insurance companies.
Payroll Accounting Treatment: The data from payrolls will then be incorporated into account books, ERP and SAP, etc.
Learning Objectives: Upon completion of this course, one will understand the basics of payroll processing, maintenance of payrolls, and account treatment of payrolls.
Payroll training courses in Chandigarh provide Payroll professionals guidance on handling topics such as exemptions, deductions, and travel pay.