Payroll
Also called: salary processing
What is Payroll?
Payroll is the whole process of paying employees: calculating gross pay, applying statutory deductions such as provident fund, ESI, professional tax and TDS, paying net salary, and depositing and reporting the deductions.
Why Payroll matters
Payroll is the largest recurring payment most businesses make and the one with the tightest deadlines. Late statutory deposits attract interest and penalties regardless of why the delay happened.
How Payroll works in practice
Fix a monthly calendar: attendance cut-off, payslip issue, salary payment, statutory deposits and returns. Keep attendance and payroll on one record, since reconstructing a month of attendance later is where errors enter.
Frequently asked questions
Provident fund, ESI where applicable, professional tax in states that levy it, and TDS on salary above the taxable threshold.