What is a Salary Slip Format, Components & Calculation

employees earning basic

So, at this stage, the gathered and validated input data is fed into the payroll system for actual payroll processing. After evaluating all the components including EPF, ESI, LWF, PT, Statutory Bonuses, Statutory Bindings and applicable taxes, the salary is computed. The final result is the Net Pay or Net Take Home Salary with adjusted taxes and other deductions. Once the payroll process is over, it is always advised to reconcile the values and verify data for accuracy to prevent errors.

Transparency ensures that employees do not have too many queries about their salary payouts. Calculating payments is a complex task due to multiple and variable inputs to the process. It is important to have a system that does it accurately and timely month on month for every employee in every location the company operates in. From the company’s point of view, the software should be easily customisable and routine tasks be simple to automate.

Also known as Conveyance Allowance, this is a monetary allowance given to the employees by their employers to compensate for the amount that they spend on traveling from their residence to the workplace. Hostel Allowance is provided by the employers to the employees for their children’s hostel fee. It is eligible for exemption up to INR 300 per month and INR 3,600 per annum for maximum 2 children. This can be integrated with our in house accounting management system, so not only is the salary processed but it’s reflection in the company’s accounting system is also done simultaneously.

Payroll Data in Tally.ERP 9 Post Migration

Once salary structure is defined, it is assigned to respective employees, for the system to know about the details of payment to be made. Once you have configured the value of all components in a salary range, click on ‘Save’ button to finish creating salary structure for the chosen salary range. You can either choose to hide an existing salary component from the payslip of employees, or configure this when creating a new salary component as well.

This computation needs to be done as per the employee’s last drawn salary. An employee is only eligible for Gratuity if he/she has completed 5 years of service with a single organization. Any payment done under Gratuity is exempted for upto INR 20 lakhs for a lifetime. Professional tax is the tax levied and collected by the state governments in India.

Medi Soft is a multi-user web application which can be used in both intranet / internet environment. The access rights (read / write / modify / delete) of each user is defined as per his role in respective departments by the administrator. We cover everything you need to handle Investment declaration for payroll. Payslips are one piece of the HR puzzle that is very important to every employee. This post is the first part of a two-part announcement, with this one focusing on thePayroll Softwarewhile the next one will be about the other aspects of ourHR software.

If a company’s fiscal year began on July 1, its three-month YTD financial statement would cover July 1 through September 30. The period begins on the first day of the current calendar or fiscal year and ends on the current date. YTD data can be used to analyse business trends or compare performance statistics to competitors or industry peers. Our experts suggest the best funds and you can get high returns by investing directly or through SIP.

Real-time Information for the Top Management!

In case you are having trouble setting employees’ PF contribution, write to Fill in the blank with desired maximum monthly amount you wish to contribute. In case you are having trouble hiding the component from payslips, write to You can either choose to make an existing salary component customisable at employee level, or configure this when creating a new salary component as well. In case you are having trouble with salary revision of an employee or want to do a bulk salary revision of multiple employees, write to Once done, this will update the salary component amount of all employees in bulk.

How to claim your tax back when you’ve been made redundant – The Money Pages

How to claim your tax back when you’ve been made redundant.

Posted: Thu, 01 Oct 2020 07:00:00 GMT [source]

Check if the work location (State/UT) of employees , in applicable for PT deduction. States are also responsible for deciding contribution rate and frequency of LWF. Any gratuity received by an employee of the Central Government, State Government or local authority, on death or retirement is fully exempted from tax. Required to submit proof of hospitalisation for one month or more with leave certificate for that period from your employer. Yes, contribution to PF is mandatory for employees who are earning Basic Salary upto Rs. 15,000 per month.

How to create a payslip?

Displays the net total amount paid every month till date, as well as the tax adjustments. Basically, YTD is the total of transactions from the start of the financial year up to now. If you are on the last month of the financial year, the YTD for ‘Basic Pay’ shows how much you received as ‘Basic Pay’ for the whole year. Year to Date of Salary Head is the cumulative earnings accrued in the Salary Head from the beginning of the financial year until the current pay period. YTD in stock market analysis gives a clearer picture to the investor of the performances of various stocks and instruments on a time sensitive basis. All the analyses are categorically available to be filtered according to indices, sectors, industries, top performing, etc.

  • ‘Not applicable’ represents that the component is not present in salary structure of the employee.
  • Multiply your gross earnings per pay interval instances the number of pay durations leading up to a certain date to find your gross 12 months-to-date earnings.
  • You have plenty of years to experience out the waves of aggressive stocks.
  • Employee and the Employer contribute 12% of your basic salary into your EPF account.

When you get started with the fiscal year, you free your payroll staff from doing extra validation on the previous month or year’s payroll data. When the software is used by the organisation, it ensures employees get their payments on time every time. With our auto report scheduler, reports can be directly emailed to the concerned members at specific dates and times. Also, you can choose the type of report output you want to send, like PDF, Excel, or Word. Our 200+ pre-built payroll reports and custom report builder tool empower payroll teams to take data-backed proactive actions that positively impact your company’s bottom line.

Other Statutory Compliances

A category of leaves such as the earned leaves which are not availed by an employee within a particular period can be encashed. The accumulated leaves are usually encashed at the time of Full & Final Settlement or after every financial year. The amount paid under Leave Encashments is exempted from taxable income under special constraints defined by the government.

ytd full form in payslips can claim reimbursement of expenses incurred on books, newspaper subscription, periodicals, journals and so on. Allowances are a part of employees’ CTC (Cost-to-Company) and are paid in addition to basic salary. This is the key process of maintaining and verifying the actual monthly payout including accurate records of employee wages, withholdings, and segments of tax details with the accounting records in the ledger. Payroll reconciliation ensures that you steer clear of piled up paperwork at the time of submitting periodic tax deposits and tax forms and ultimately prevent any fines or legal troubles.

All this can be done just by logging in to the factoHRs mobile app or self-service portal in a self-service way. For any payroll system to know the details of salary that needs to be paid out to employees, it is important to have a salary structure in place for all your employees. Salary structure of an employee, in simple words, can be defined as group of compensation items (a.k.a. salary components) with defined values. There are many reasons why payroll management is necessary for organizations irrespective of the number of employees and type of industry. Firstly, it ensures that employees are paid accurately, on time, and have outstanding experience in the organization. Secondly, an efficient payroll management system help organizations save money, time, and resources spent on recalculations and mismanagement.

YTD provides a clearer picture of the performance of numerous stocks and items over time in stock market analysis. All analyses can be categorised and filtered according to indices, sectors, industries, top performers, etc., often referred to as Sector Scan. To identify seasonal trends or anomalies, compare the current year’s September YTD financial statement to September YTD financial statements from the prior year or years. A fiscal year is a 12-month period that does not necessarily begin on January 1. Accounting and external auditing are utilised by governments, corporations, and other organisations.


Other components’ value/calculation, that exists in a salary range, can differ for each employee falling within this range. For updating the component value of individual employee, enter the annual amount for the component (in case the component doesn’t exist in employee’s salary, enter 0). Blank field will take the default maximum amount configured at the salary structure level. Once done with adding the amount/value, click on ‘Update’ button to override the amount at individual employee level. On the popup that appears, click on the toggle button to enable pay slips viewing. You can also choose to email payslip to your employees by clicking on the check-box to select and then clicking on ‘Send Email’ button.

Once all dues are paid, then quarterly/half-yearly/annual returns/reports are filed and submitted to the respective government bodies. Year to Date payroll for an employee is the gross income earned during the current financial year. A YTD payslip shows accrued values for each salary head; this helps employees to predict the tax liability and also shows details on the tax paid so far. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources.

Medical allowance to cover the cost of medical expenses during the employment period. The employee only gets the claim on the submission of medical bills as proof. At the end of the financial year, the employer shares the PF statement with the employees after receiving them from the EPFO. It is recommended that employee with lower CTC should opt for a lower Basic salary since this is going to get them higher monthly net pay.

PAYE70023 – PAYE operation: aspects of PAYE operation … – GOV.UK

PAYE70023 – PAYE operation: aspects of PAYE operation ….

Posted: Wed, 13 Apr 2016 07:00:00 GMT [source]

A particular period/month of year is defined for the revision to happen, for all employees. Employee and the Employer contribute 12% of your basic salary into your EPF account. In case you are facing trouble while configuring PT for your employees, write to In case of PT applicable state needs to be defaulted to any specific organisation’s location, select ‘Use Default State’. Click on ‘+Add’ button to choose the default state that needs to be considered for PT deduction.

In case you are having trouble with issuing bonus to an employee or want to do a bulk bonus assignment to multiple employees, write to Detail Pay-slip along with Tax computation and information of consolidated YTD figures as well as estimated salary figures and month-wise TDS deduction details. Web-e-PAYROLL processes and manages the salaries of the employees and thus converts the attendance into pay-slips with no effort. The risk of mistakes and errors goes down exponentially when you incorporate a reliable payroll system and consult payroll experts.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top