TOPIC : PAYROLL METHOD CALCULATION

A project Submitted to
University of Mumbai for Partial completion of the degree of
Bachelor in Commerce(Accounting and Finance )
Under the faculty of Commerce
By
YADAV SONALI SABHAJEET
Under the guidance of
Ms.Sonal Shinde.
Changu Kana Thakur Arts, Commerce and Science College,
Sector – 11, New Panvel-410206
Academic Year : 2019-20
MEANING

Payroll is a list of employees who get paid by the

company. Payroll also refers to the total amount of money
employer pays to the employees. As a business function, it
involves: Developing organization pay policy including flexible
benefits, leave encashment policy, etc.
INTRODUCTION

1. A company's financial list employees.

2. payroll is the combination of all of the financial records

3. Total amount of money that a company pays to its employees.

PAYROLL GOALS & OBJECTIVES

1. Accuracy

2. Consistency

3. Cost Effectiveness

4. Compliance
FEATURES OF PAYROLL SYSTEM FOR SMALL BUSINESSES:

1. It can handle multi company transactions

2. It can calculate bonuses, commissions and advance payments
3. It can calculate monthly salary, EPF, SOCSO and PCB.
4. It can generate various management and operation reports
5. It gives accurate calculation.
6. It is suitable to maintain employees’ profiles.
7. It provides payroll detail report
WHAT DOES A PAYROLL MANAGEMENT DO?

 Payroll Management

 Leaves management

 Expense management

 Benefits, bonus management

 Income tax and deductions

 Time and attendance tracking

 Reports, payslips, forms

 Record - keeping
 PAYROLL TAXES

1. Payroll taxes in the United States

2. Employee Taxes

3. Employer Taxes

4. Freelance Taxes
PAYROLL DEDUCTIONS AND REIMBURSEMENTS

 There are two types of payroll deductions that are taken out of gross pay

1. The first type are mandatory deductions

2. The other type of deductions are then considered to be voluntary deductions.
HOW TO CALCULATE PAYROLL?

I. Notify Employees
II. Collect timesheets
III. Review and approve timesheets
IV. Enter hours worked
V. Enter wage rate changes
VI. Calculate gross pay
VII. Calculate net pay
VIII.Review
IX. Pay employees
X. Remit taxes
XI. Distribute pay.
POST-PAYROLL PROCESS

1. Statutory compliance

2. Payroll accounting

3. Payout

4. Reporting
TOOLS USED FOR PAYROLL CALCULATIONS
1. ADP

2. Zenefits

3. Surepayroll

4. Gusto

5. Ascentis

6. Time2pay
TECHNIQUES USED FOR PAYROLL
CALCULATIONS
1. Cash Method

2. Payroll Check Method

3. Direct Deposit Method

4. Debit Card Method

5. Manual System

6. Accountant

7. Payroll Software

8. Contracted Payroll Companies

ADVANTAGES OF PAYROLL SYSTEM

1. Easy Calculations

2. Easy Forecasting

3. Save Time

4. Safe Backup

5. Cost Effective
DISADVANTAGES OF PAYROLL SYSTEM

1. Manual

2. Outsourced/External

3. On-Site Computerized
IMPORTANCE OF PAYROLL CALCULATION

Why is payroll process important for any organization……….

i) Irrespective of the size of the organisation, payroll plays a huge role in maintaining the
morale of employees to the financial stability of the company.

ii) Typically processing of a payroll is time consuming and complex task.

THANK YOU !!!