What Is Payroll Management System?
It is a system that employers use to pay salaries to their employees. There are many fracture payroll management such as salary management, allowance management, a deduction system, and net payable. This system deals with the pay slips of the generation.
It’s the structure of different remuneration components which includes basic salary, allowances, perquisites, and retirement benefits. The basic salary is the basics remuneration as per the contract made with the employers. It includes HRA, DA, and child care allow. Thence, prerequisite includes Transport facilities and rent fee accommodation and retirement facility, including pension fund and gratuity fund. Different companies have different components for all the companies give importance to taxation and compliances.
These compliances include provident fund, employee state insurance, bonus, gratuity, professional tax, and TDs. Without making these compliances, you cannot prepare payroll. If We talk about the applicability of EPF, then you should know that if 20 or more people are available in the company, then EPF is applicable.
In EPF rate of employer is12%, the employee is 12%, these rates can also be increased, employee Admin and EDLI expenses are ( 0.5+0.5)% maximum up to Rs 50. In the case of ESI, if the factory has 10-20 employees, then it is applicable. The total rate is 4%, where employer-3.25% and employee- 0.75%.