Payroll
Payroll is the end-to-end process of calculating employee salaries, deducting taxes and statutory dues (PF, ESI, TDS, PT), generating payslips, and disbursing net pay to bank accounts each pay period.
What is Payroll?
Payroll covers everything from collecting attendance and leave inputs to running calculations, applying statutory deductions, generating payslips, and pushing salaries to bank accounts. In India, it must comply with the EPF Act, ESI Act, Income Tax Act, and state Professional Tax laws. A payroll system handles these steps and produces audit-ready reports each month.
How Payroll is used
Payroll runs once per pay cycle (typically monthly in India). HR finalises attendance, the system computes earnings and deductions, payslips are released to employees, and a bank advice file is sent for salary credit.
Payroll FAQs
What does payroll software do?
Payroll software handles salary calculation, statutory deductions (PF, ESI, TDS, PT), payslip generation, bank advice files, and statutory returns like ECR and Form 16.
How often is payroll processed?
In India, payroll is typically run once a month. Some companies run a mid-month advance and a month-end balance.
What inputs does payroll need?
Attendance, leave-without-pay days, overtime, reimbursements, variable pay, tax declarations, and any one-time additions or deductions.