HR FORMULAS.

Slides:

Advertisements

Similar presentations

EasyPAY Complete Payroll Management Software Complete Payroll Management Software. Employee Management Salary Management Leave Management Loan & Advance.

Advertisements

A Sample Wage Slip.

E MPLOYEE ’ S P ROVIDENT F UNDS AND M ISCELLANEOUS P ROVISIONS A CT, 1952 EPF & MP Act, 1952.

GUIDE TO SALARY INCOME TAX RETURNS PRESENTED BY FORESIGHT MANAGEMENT SERVICES PVT. LTD. BALARAM COMPLEX, STATION ROAD BHUJ-KUTCH PHONE ,

Problems. The general rule : 1.Calculate the social insurance exemption separately 2.Calculate annual tax bracket 3.Calculate the tax due.

INCOME UNDER THE HEAD SALARIES

Main Features: 1. Provides for a Basic Allowance of $25,600 and, 2. Provides for a second Basic Allowance of $19, Effectively exempts from Income.

Presented by Lorraine Moreno, Regional Manager TMRS Membership.

EFFECTIVE DATE : APPLICABLE TO : Employees of all establishments contributing to Employees’ Provident Fund EMPLOYEES DEPOSIT LINKED INSURANCE.

Overview of Retirement and Social Security Benefits Presented By: Jehangir Daruvalla.

Tax implication on Salary Income Presented by: Sachin Gujar Chartered Accountant.

Chapter Eight Employee Earnings and Deductions Accounting Is Fun! Performance Objectives 1.Calculate total earnings based on an hourly, piece-rate,

Payroll Definition Payroll is defined as a method of administrating employees’ salaries in the organizations. The process consists of calculation of salaries.

2.3.9.G1 February 12, 2014 Getting Paid State Comparison Project TodayLast Class The Places You will Go! Notes Worksheet.

Taxation What is Tax Charge made by the Government to the public to meet its expenses for the nation It can be on an individual It can be on a corporation.

Employee benefits Session-15.

INCOME TAX ON SALARIES.  1.The levy of income tax in India is at present governed by two acts. a)The Income Tax Act,1961 b)The Finance Act passed each.

1. Objective 2. Salary income 3. House property income 4. Other sources of income 5. Tax savings instruments 6. Tax structure and slabs 7. Tax filing.

Defined Benefit Vs. Defined Contribution

The Payment Of Bonus Act, 1965

HUMAN RESOURCE DEPARTMENT 1 By Rajasekar.  The Employee’s Provident Funds Act 1952  Employer role & responsibility  Employee role & responsibility.

 Employer provided group term life insurance in excess of $50,000 for employees is considered by the Internal Revenue Service (IRS) to be a benefit that.

EasyPAY Payroll Management Software >> Press Enter to go to the Next Slide Sensys EasyPAY A Complete Payroll Management Software  Employee Management.

TAXES AND SPENDING Obj. 4.01: Explain taxes on income.

Chapter 23 Understanding Income and Taxes

Advances in Human Resource Development and Management

ABP FY Income Tax related Financial Information Payroll and Trust Management.

FIVE HEADS OF INCOME Income under head salaries.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1 Overview Bencor Special Pay Plan (DROP Participants) For Employees of the School District of Lee County.

Population in excess of 1 Billion 35 States and Union Territories 24 Languages 7 Religions 3000 communities.

Meaning of Salary →salary is a form of periodic payment from an employer to an employee. →salary is fixed amount of money or compensation paid to an employee.

FIVE HEADS OF INCOME INCOME UNDER HEAD SALARIES

Chapter Eight Employee Earnings and Deductions. Copyright © Houghton Mifflin Company. All rights reserved Performance Objectives 1.Understand the.

Session -5 &6 Computation of Total Income By B.Pani M.Com,LLB,FCA,FICWA,ACS,DISA,MBA

NS 5.1.2: Consumer Arithmetic Students learn about calculating earnings for various time periods from different sources, including: Wage  Salary  Commission.

PROFIT IN LIEU OF SALARY [17(3)]

Employee Benefits By Muhammad Zohaib Sufyan SZABIST.

All business will insure their business against loss. This is normally a big expense for a business. It is a contract between 2 parties – the insurer.

Insurance solutions exclusively for you, at your workplace!

SALARY - Meaning Salary includes – 1) Wages 2) Pension 3) Any gratuity 4) Any fees, commission, perquisite or profits in lieu of or in addition to any.

G1 © Family Economics & Financial Education – Revised March 2008 – Paychecks and Taxes Unit – Understanding Your Paycheck Funded by a grant from.

THE RIGHTS OF EMPLOYEES: WAGES

 ISSUED VIDE O.M DATED – SUPERANNUATION BENEFITS 30% OF BASIC.  SUPERANNUATION BENEFITS TO INCLUDE P.F, GRATUITY, PRMS AND PENSION.

INCOME FROM SALARY Presentation by: DR. N.K.GUPTA.

 Gross Pay - income earned before any deductions  Salary - monthly or annual  Hourly - regular and overtime  Piecework - earn a set amount per item.

Earning an Income Review. A purposeful course of action or purpose in life that generally provides income.

Submitted to:Submitted by: Ms. Nisha AggarwalSunayana Khanduja (4279) Dhruvika Sharma(4321)

THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952.

Budget: a plan for managing income and expenses Expenses: Money that is required to be paid once a month Fixed Expenses: expenses which usually do not.

SALARY. Salary Salary, as commonly understood, means a fixed payment made periodically as compensation for regular services rendered. It covers wages.

 FULLY TAXABLE COMPONENTS AND ALLOWANCES  FULLY EXEMPTED ALLOWANCES  PARTLY EXEMPTED ALLOWANCES  RETIREMENT BENEFITS  TAXABLE PERQUISITIES.

Lecture 26 Computation of Salary Income. Salary and Its Computation Exercise 1 Compute taxable income and tax thereon from following information/ data.

SALARY INCOME. What is salary?  Payer & Payee  More than one source  Foregoing salary is salary income  Tax free salary should include the tax paid.

Standard 1 VOCABULARY.  Career – a purposeful course of action or purpose in life that generally provides income  Earned Income –money received for.

03 TAXATION. PROVIDENT FUND The contribution paid by employee from his salary is not a deductible expense. Employer contribution is exempt upto 10% of.

Payroll Office Payroll information and understanding your payslip.

My Paycheck Chapter 3. Types of Income Earned Income – Money received from working. Six types: wages, tips, salaries, bonuses, commissions, royalties,

Sensys EasyPAY A Complete Payroll Management Software

Presentation on Salary Taxation

Social security measures in India

THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952

AS-15 (REVISED EMPLOYEE'S BENEFITS)

Content Meaning of Employee State Insurance Scheme Motto of the Scheme

Income Tax Management

Income Tax Management

Meaning of Payroll The term Payroll refers to a series of accounting transactions involved in the process of paying employees for the services rendered.

Presentation transcript:

HR FORMULAS

Salary Calculations How monthly Gross is calculated? Annual CTC Base Pay divided by 12 How Basic is calculated? 35% to 45% of Gross Salary (depends on the Co.’s policy). Most companies follow 40% of Gross Salary. How Dearness Allowance is calculated? Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary. Rates vary as per rural/urban areas etc.

Salary Calculations How House Rent Allowance (HRA) is calculated? HRA – 50% of Basic (Chennai, Kolkatta, Delhi, Mumbai ) HRA - 40% of Basic if Population > 10lakhs & 10% of Basic if Population < 10 Lakhs (Other Cities)

Salary Calculations How Leave Travel Assistance is calculated? Leave Travel Assistance : 12%-13% Of Basic (Depends Of Co.’s Policy) What is the Eligibility of Children Education Allowance? CEA : Rs. (200 Per Month) What is the Eligibility of Conveyance? Rs. 800 per month What is the Eligibility of Medical Allowance? Rs.15000/- P.A. (Till 15000/- Tax is not exempted) What is the Eligibility of Food Coupons? Food coupons are given from Rs.500 to Rs.1650/-(varies from co. to co. according to employees levels) How Special Allowance is Calculated? Special allowances is calculated from: Monthly Gross – (Basic+HRA+Conveyance+Food coupons+LTA+Children Education+Medical Allowance+other allowances). Varies From Co. to Co

Salary Calculations How Bonus is calculated? Bonus is calculated from a rate of 8.33% to a maximum of 20%(employer’s wish) of an employee’s salary or wage for the days he/she has worked during that accounting year. Maximum Salary considered will be Rs.3500/- per month If the basic exceeds Rs.10000/- bonus is not applicable

Salary Calculations How Leave Encashment is calculated? as below a. In case of company: Basic x no of leave balance 30 b. In case of factory: Gross x no of leave balance 26

Salary Calculations How PF is calculated? PF:1. Employees share PROVIDENT FUND 12% of basic 2. Employers share 12% of basic of which 3.67% goes to Provident fund and remaining 8.33% goes to Pension fund (PF is calculated on 12% of basic, where the maximum deduction should be 780 or whichever is less- i.e. basic should not exceed 6500/-)

Salary Calculations How Employee State Insurance (ESI) is calculated? ESI – employees whose gross salary is Rs.10000/- and below are eligible for ESI Employee’s share:1.75% on salary (gross) Employer’s share:4.75% on salary (gross) How Employees Deposit Linked Insurance (EDLI) is calculated? Only Employer has to make contributions @ 0.5 % of basic wage & dearness allowance

Salary Calculations How Gratuity is calculated? 26 Gratuity is paid after 5 years of completion of service The amount does not exceed Rs 3,50,000/- Formula for calculating gratuity Salary (Basic + DA) x 15 days x No. of yrs 26 Simple calculation= 4.81% of basic

Salary Calculations How Pension is calculated? - Pension Amount = (Pensionable Service (No. of Years) * Pensionable Salary ) 70 How Attrition is calculated? - Resigned employee x 100 No. of existing employees (done either monthly or yearly depending on the company)

Salary Calculations How Full and Final Settlement is calculated? Payable to Employee:- Salary, Bonus, Leave encashment, Gratuity, Traveling expenses, Sunday working day, Medical expenses reimbursement, Motor car / scooter expenses Receivable from Employee:- Advance against salary, Loan Imprest ( Advance Money for e.g. for clothing, Accommodation, and company will cut the money after 4 to 5 months from the salary), Tour advance, Notice pay, Income tax, interest on loan Payable minus receivables = FF S Always calculate amount of Notice period on Gross payment for the month ( Basic+ other allowances which are paid in salary. )

Salary Calculations How Professional Tax is Calculated? Professional Tax is a state based Tax- deduction is from the gross income Duration of deduction is half year 1st day of April to 30th September 1st day of October to the 31stMarch of a year. PT is deducted slab wise-fixed by the state government (it varies according to the salary range)

Salary Calculations How salary is calculated? Salary is been calculated on the basis of number of days in that particular month, For January it will be 31 days, for April would be 30 days and for February it would be 28 or 29 days.

Workmen’s Compensation How WC is calculated? - Case 1) Death of Employee – WC Eligibility is 50% The calculation is – Check worker’s Age and his Factor Maximum Wages x 50% x Factor Maximum Eligibility for Fatal Injury - Rs.4,57,080 - Case 2) Permanent Total Disablement - WC Eligibility is 60% Maximum Wages x 60% x Factor Maximum Eligibility for Permanent Total Disablement - Rs.5,48,496 - Case 3) Temporary Total Disablement First 3 days are excluded The calculation will be No. of days – 3/15*25% No. of days – 3 x 25% 15 Maximum Eligibility for Temporary Disablement - Rs. 2000 pm up to a period of 5 years Case 4) Maximum Eligibility for Permanent Partial Disablement - According to incapacity caused

Performance Link Bonus How Performance Link Bonus is calculated? For Eg:6 months and 50% PLB calculation is 50/100*6/12*Yearly Bonus Eligibility of an employee Patricia