Payroll Management System is the system by which an employer can manage the salaries of the employees. The salary structure includes salary, allowances, deductions, and net payable to the employees. It also deals with the generation of pay slips.
The payroll management system is a set of processes that helps you streamline salaries, bonuses, deductions, taxes, and other necessary aspects of the net pay of all the employees in your organization.
A payroll is calculated at the end of each pay-period. There are a few important considerations while defining pay periods. All government reporting related to payroll corresponds to financial years and is broken down into monthly, quarterly, half-yearly and annual returns of different types.
Here the basic salary will be calculated as per follows Basic Salary + Dearness Allowance + HRA Allowance + conveyance allowance + entertainment allowance + medical insurance here the gross salary 594,000. The deduction will be Income tax and provident fund under which the net salary comes around 497,160.
In some organizations, payroll is considered a part of the Human Resource Management department because they deal directly with the people being recruited and are also responsible for deciding the salary, bonus, and incentives of all employees.