Institute Of Chartered

Accountants Of India

Presentation On Payroll
Presented To: Presented By:
Mr. Ved Maurya Sir Muskan Agarwal
ICAI Registration No.: CRO0583056
Acknowledgement
I am using this opportunity to express
my gratitude to everyone who
supported me throughout the course of
this Information Technology Training
Project on Payroll. I am thankful for
their aspiring Guidance, invaluably
constructive criticism and friendly advice
during the Project Work. I am sincerely
grateful to them for sharing their
truthful and illuminating views on a
number of issues related to the project.
Contents:
The Following Presentation includes The Following Points:
What is Payroll?
What is Payroll System?
Burden Rate
Payroll Taxes
Objective of Payroll Taxes
Treatment in Income Tax
Payroll Deduction Plans
Advantages and Disadvantages of Using Professional
Payroll Services
Tips for Choosing a Payroll Outsourcing Service
Some Payroll Outsourcing Companies
In Conclusion
What Is Payroll?
A payroll is a company's list of its employees, but
the term is commonly used to refer to:
the total amount of money that a
company pays to its employees
company's records of its employees
salaries and wages, bonuses, and
withheld taxes the company's
department that calculates and pays
these.
Payroll in the sense of "money paid to employees"
plays a major role in a company.
What Is Payroll System?
A payroll system is software designed
to organize all the tasks of employee
payment and the filing of employee taxes.
These tasks can include keeping track of
hours, calculating wages, withholding taxes
and deductions, printing and delivering
checks and paying employment taxes to the
government.
An Example Of Payroll
Report
Burden Rate
The burden rate consists of indirect costs
associated with employees, over and above
gross compensation or payroll costs. Typical
costs associated with the burden rate include
payroll taxes, worker's compensation and health
insurance, paid time off, training and travel
expenses, vacation and sick leave, pension
contributions and other benefits. The burden
rate provides a truer picture of total labor costs
than payroll costs alone.
Payroll taxes
Payroll Tax is the tax withheld, charged or levied
on the payroll of an employer. This includes all
gross salaries, wages, perks or any other forms of
remuneration paid to his or her employees.
This tax is charged without taking into
consideration the employees domicile, family
status or any other individual circumstances. In
short, payroll taxes are taxes required to be paid
or withheld by an employer on behalf of his or
her employees.
Objectives of Payroll Tax
The Payroll Tax incentive scheme was introduced
to meet the following objectives:

To help in growth and enhancement of the business sector

To facilitate the provision of rebate, which is paid by the
employer for his or her employees
To help prepare businesses during their formative years of
functioning
The aid businesses looking to shift base from one location to
another
To help businesses that are looking to expand their payroll and who
are looking to undertake the liability of the payment of payroll taxes.
Treatment in Income tax
Payroll Tax generally falls into two different
categories:
Deductions From An Employees Salary: This category of
payroll tax is tax that an employer is required to withhold from his or
her employees salary or wages. This tax is also known
as withholding tax & can be used to cover advance payment of
income tax or unemployment & disability insurances

Taxes Paid By The Employer In Lieu of Employees

Wages: This category of payroll tax is the tax paid by the employee
from his own funds. This tax is directly related to employing a
worker and can comprise of certain fixed charges or be
proportionally linked to a workers salary. These charges paid by the
employer generally cover the employers contribution towards social
security, insurance programs etc
Payroll Deduction Plans
A contribution plan in which an employer deducts a specified
amount from an employee's pay and puts the funds toward
insurance, healthcare or an investment account. In most
situations, employees enter into payroll deduction plans on a
voluntary basis.
Payroll deduction plans offer employees a convenient way to
automatically contribute income toward an ongoing expense
or investment. For example, it is common for employees to
deduct a set percentage of income and contribute it to their
Traditional or Roth IRAs. An employee may also choose to
have the premiums from an insurance policy deducted from
their pay, ensuring that a payment is never missed.
Advantages and Disadvantages of
Using Professional Payroll Services
Professional payroll services offer many benefits and a few
disadvantages. One major benefit of payroll services is their ability
to produce a variety of reports that simplify accounting procedures
and help companies ensure they are in compliance with legal and
tax filing requirements. The payroll service may also maintain a
record of how much vacation or personal time employees have
used.
On the downside, when companies outsource their payroll system,
they must rely on individuals outside the business for accurate
accounting. In the event of an error, the company's onsite personnel
must deal with upset employees. Companies might also face tax
penalties for the payroll service's error. In addition, payroll services
are more expensive than running payroll in-house. The services may
charge a set monthly fee or offer different payment structures for
varying tiers of service. Because of their cost, payroll services may
not be the best option for small companies with tight operating
budgets.
Tips for Choosing a Payroll
Outsourcing Service
How much control do you want to retain over your payroll and
other aspects of business pertaining to your employees.
Create a list of your needs.
Compare prices, but also check for hidden fees and other
unexpected charges you might incur.
Can the payroll service you are considering integrate with your
existing HR software?
Reputation and customer service. These are both areas of
trust.
Some Payroll Outsourcing
Companies
PaySquare Pune
Execupay
TopSource Pune
Data Management Payroll Services
Intuit.
Paychex.
SurePayroll.
MyPayrollHR.
ADP.
PayUSACoastal Human Resources Group.
Bank of America.
In Conclusion
The long process for registering a business in
India can be incredibly taxing without
professional help as can establishing and
maintaining success payroll operations in-
country. Outsourcing Indian payroll to a trusted
global payroll service can help organizations
apply their focus elsewhere in the business and
achieve ongoing compliance with all applicable
Indian payroll guidelines.