Payroll Management
The following tasks are covered in the Basic Services offered
  • Creation of Monthly Salary Registers as per the remuneration package of each employee. The register will be prepared based on the following monthly inputs from the client
    • Attendance records
    • Overtime details
    • Employees on No Pay
    • Any additional payments or deductions a part from the regular salary
    • Increment Letters
    • Joining reports of New Employees
    • Resignations
  • Generation of individual payslips for each employee providing details of each Allowance, the Gross salary, the Deductions, and the Net Pay.
  • Processing of Voucher Payments for expenses incurred by the employee on behalf of the company or any additional payments made which do not form part of the regular payslip.
  • Computation of Tax Deducted at Source based on
    • The Earnings, Deductions, and Projections,
    • Perquisites provided by the Company to the Employee namely Car, Driver, Company Accommodation, Furniture, Subsidised Loans, etc
    • The investments made by each employee for the purpose of obtaining tax benefits.
      • Preparation of the database or text files to be submitted to banks for direct credit of salary via ECS facilities.
      • Maintaining leave records under each head of Privilege Leave, Casual Leave, and Sick Leave.
      • Preparation and filing of quarterly e-TDS returns. Assistance in refilling the Returns in case of any notices from NSDL.
      • Returns in case of any notices from NSDL.
  • Incorporation of Company/Bank Loan Details with automatic monthly deduction of instalment amount as well as interest amount. Calculation of Perquisite on Loan for tax purposes.
  • Preparation of Lunch coupon report for clients who disburse these coupons to employees as part of the package.
  • Preparation of XML JVs to directly upload Payroll Data into Tally Accounts or preparation of SAP-specific Excel files for uploading the data onto the Client’s SAP Systems.
  • Preparation of Payslip files for Uploading onto the client's intranet site so that each employee can view their individual payslips OR Uploading onto the 'Veritech' Website with a Secure Access Link to all Employees to view their data on-line.
  • One time Ad-Hoc Management-specific reports as required from time to time or any other payroll-related advisory services.
  • Auditing and tracking Reimbursements under heads like Medical, Telephone, Fuel, Vehicle Maintenance, etc., and computing the amount to be passed against bills submitted (considering the entitlements) on a monthly basis.
  • Auditing the Tax-Saving documents received from the employees for completeness and compliance as per the Tax regulatory laws.
  • Advising applicability of TDS provisions on Salaries on various Investment instruments.
  • Mailing the Audit Reports to the concerned department so that, wherever the documents are not in order, employees can resubmit additional investment proofs.
  • Computing and preparing the draft Tax Computations once the documents are complete so that employees can review their TDS outflow based on actual investment proof submitted.
  • Preparation of Annual Tax Statements for filing of e-TDS returns.
  • Preparation of TDS Certificates in prescribed formats (Form16 (Part B)) for all the employees.
  • Determining Shortfall of TDS deducted for employees absconding mid-year.
Reimbursements are generally paid as an out of payslip payment on submission of bills by the employee on a monthly basis. Reimbursements are normally a part of the CTC of the employee but these payments would be done only on the submission of the bills & based on the entitlement of the employee. The reimbursement process runs separately from the normal payroll process. This process is also termed as "Flexi Reimbursement Process". An employee can opt in/out of this Flexi process at the time of his/her joining and at the time of increment. These payments can be done in two ways, as follows:
  • "Through Salary Account (ECS TO Bank)"– In this, the company can pay all the reimbursement payments through the employee’s regular salary account
  • "Employee Reimbursement Account (ERA Account)"– In this, the company maintains a separate account for each employee for the payments of the reimbursements.
The normal heads which are defined under flexi components, are as follows:
  • Fuel & Vehicle Maintenance
  • Driver's Salary
  • Telephone
  • Medical
And in certain top management cases they are also entitled to the following flexi heads:
  • Club Expenses
  • Gifts
  • Entertainment
The entitlement breakups within each flexi head is totally at the discretion of the company & its policies.
"Process Flow"- The typical flexi reimbursement cycle every month would be as follows:
  • By 10th of every month the client forwards the bills submitted by the employees.
  • Once the physical bills have been received, we carry out an audit of the same.
  • Controls and checks are in place to ensure employees are not paid greater than their entitlements.
  • After the audit based on these bills submitted, we create a corresponding Bank transfer file called “Flexi Entitlements” through our system.
MONTHLY REPORTS are covered under Basic Services and will be provided on a monthly basis.
  • Preparation of the Salary Register that includes the Employee Master Details, the Earnings, the Gross Salary, the Deductions, and the Net Salary.
  • Preparation of Bank Payment Register giving details of payments along with employee account number and bank name.
  • Preparation of Full and Final Settlement report that gives details of the employees resigned during the month and their final settlement amounts.
  • Preparation of the Provident Fund Details with an accounting break-up as per statutory laws (Form 12A).
  • Preparation of Employee State Insurance details as per government directives (Form 5).
  • Preparation of Summary report of the Profession Tax paid as per statutory regulations (Return-Cum-Challan Format).
  • Preparation of Income Tax Deduction list.
  • Preparation of Income Tax Working for the full financial year for each employee every month, to help employees with their tax planning, based on actual earnings till date and future earnings for the remaining period of the financial year (Projection Report).
YEARLY REPORTS (STATUTORY SERVICES) are covered under Basic Services and will be provided on an annual basis.
  • Preparation of Statutory Bonus Report for employees eligible for an Annual Bonus as per the Bonus Act.
  • Summary of Tax Deducted from the payslips as well as from the voucher payments made to employees.
  • Employee details for the purposes of calculation of Gratuity.
  • Month-wise break-up of the earnings and deductions of each employee for the year.
  • Employee details for the purposes of computation of Leave Encashment.
  • Form 16 as well as Annexure to Form 16 for each employee which provides details of annual salary, tax deduction, and investments.
  • Form 12BA for each employee giving details of the perquisites availed of like subsided loans, company accommodation, company car, club membership, etc.
  • Form 24 and Annexure to Form 24 for the company.
  • Form 217 for the company as per government regulations.
  • Preparation of Maharashtra Labour Welfare Fund deductions on a bi-annual basis.
  • Preparation of e-TDS files on a quarterly basis.