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1 What are the rates (Percentages) paid as Employer's Share of PF in A/C No.1, A/C No.10 & A/C NO.

21 A PF Employer contribution:---12% of Basic+DA+1.61%-----Out of this 12%--3.67% will go to Povident Fund (Ac No: 1)-8.33% will go to Pension Fund ( Ac No: 10)----And--1.61% on PF contribution is Bifurcated into 3 parts :---1.1% Admin charges--0.01% Admin on EDLI---0.5% EDLI ----PF Employee Contribution:--12% of Basic+DA --Entire amount will deposited to PF (Ac NO: 1)--Employee can make higher contribution but he can't contribute less than employers contribution. 2 What is exemption limit of gratuity A In India its Rs.3.5 lacs maximum.----, Now its raised to INR 10 lacs. 3 What are the general deductions made while doing payroll for an employee in an organization? A Deduction on account of absent from work(Leave without Pay)---Lunch and transport deduction(depends on organisational policy )--PF,ESI,TDS,LWF,PTax based on applicability---Advance recovery. OR Profession Tax(Note that PT is not deducted for Delhi salaried employee)--TDS(not deducted for contract employees)--ESI (Is deducted only if employee's monthly gross earnings is less than 10K). 4 What are the benefits achieved by computerized payroll system? A With the computerised payroll systems:-- You saved a lot of your time,--Your accuracy and efficiency is increased by many times.--Your are free from small and small human mistakes in calculation and linking etc.--Once master data is updated(CTC,Reimbursement),--rest is taken care by the systems once input is given as and when salary is processed.--Better control is exercised. 5 what is the journal entry at the end of the year for the 13th salary provision A cr.provision for bonus--dr.bonus(one month salary pd as bonus). OR --Bonus Dr.--Bonus Payable Cr--or some companies don't pay bonus they pay it as incentive/Performance Bonus---Incentive/Performance Bonus Dr.--Incentive Payable/ Performance Bonus Payable Cr. 6 How payroll works? A An employe works his/her hours which are designated by the company, which in turn makes up your wages (Over-Time). Deductions are made accordingly and recorderd. Tax and NI are paid to HRMC, Monthly, Quarterly, End of year. OR it works as under mentioned.--the input (Attendance with new joinee,left) is received.--On the base of the same is salary is processed and Sent to the clients 7 How do you calculate Gratuity? A Basic+DA --26 - Working Days--15 - Half of the month---No.of Years Basic+DA/26*15*No.of Years 8 How to define payroll? A Payroll means maintaing records of employees. In/Out data updating. Processing Salaries, statutory payments like PF,ESI & TDS deductions and payments. Generate Payslips and distribution. In short "Maintaing Employees' Data, Distributing Salries and making all statutory deductions & Payments is called Payroll Processing" 9 What do you understand by Verience report in payroll? A Deductions in Tax, NI, Pensions which differ from the total. 10 What is the minimum period to revise the Basic Salary of Employees? A Wage Revisions as per wage policy every finanical year means April of the every year will revised. at the same time Basic is revised as per appointment order like we are given probation period to every employee after completion of the employee probation than basic also revised and depends upon Organisation Structure also. Basic is revised as per appointment condition under the employer.i.e. Six months to One year as per organisation rules. 11 What report are provided to accounting dept. from payroll every month? What reports are generate at end month, qtr & year end in payroll dept? A For making accounting entries the accounting dept will need the total transactions of the particular payroll run grouped into various expenditure/liability/Income items like salary,loans,ees pension,ers pension,tax, PF/NI etc. This information should be employee wise & relevant cost center of the employee(in a large organisation).--Mostly payroll will have expenses/liabilities only. Few payrolls might have Income also. --To be specific to the reports bit of your question following reports are produced 1) Net pay reconciliations report 2) Deductions report comprising all voluntary and non voluntary deductions 3) Payments report 4) Costing report 5) Exceptions report 6) High pay salary report 7) No pay salary report

12 If Gratuity Calculation :Gratuity=Last Basic Pay*15 Days* Number of Year ServiceA person works for 41 year & 6 months in a company.Calculate the Number of the service year A RE: Gratutity Calculation ---41 years and 6 months count as a 42 yeare 13 who is contingent worker? can we run payroll for a contingent worker? A Contingent or temporary workers have little or no job security as their employment is based on a temporary Contingent workers are not committed to the organization for a long run, as they know that they will be out of there in very short period of time.-- depends on whether the contingent worker is a employee or not, can be temporary employee. If he is, then pay them through payroll, issue W-2, otherise, pay through A/P, issue 1099 if over $600 a yr. 14 What is payroll card? A A payroll card is a plastic card allowing an employee to access their pay by using a debit card. A payroll card can be more convenient than using a check casher, because it can be used at participating automatic teller machines to withdraw cash, or in retail environments to make purchases. Some payroll cards are cheaper than payday loans available from retail check cashing stores, but others are not. Most payroll cards will charge a fee if used at an ATM more than once per pay period. The payroll card account usually is held as a single account in the employer's name. That account holds the payroll funds for all employees using the payroll card system. Some payroll card programs establish a separate account for each employee, but others do not.----- Payroll cards are used for clocking in/out, determins the pay, weekly/monthly/fortnight pay. 15 What is accrued-tax? A Deduction of tax to date.---- Tax accrued on the Income-To-Date or Year-To-Date (whichever applicable), but which is paid at the end of the Accounting Period 16 What are payroll taxes? A Income Tax--Professional Tax--Fringe Benefit Tax for Non-payroll reimbursements. 17 What is salary tds? A Means whatever income any employee received from the organisation and on that tax to be deducted. (e.g. gross salary, overtime, bonus, incentives etc.) --Tax is deducted on Taxable salary income paid to employee. Meaning of salary vary depends on position occupied. Salary excludes Reimbursement of Expenses claim for salary TDS. Eligiblility is determined after considering Basic Exemption Limit specified under the Income tax Act. 18 What is Payroll Disbursements Journal? A Payroll Disbursement Journals is the entry which to make towards the payment of netsalary / reimbursements / other income & against the deductions like IT / PT / Statutory & other Company Cost related with employee welfare . OR When Due: Salary A/c Dr 100 To Deductions (Tds, Pf) Cr 10 To Salary Payable A/c Cr 90 When Making Payment: Salary Payable A/c Dr 90 To Bank A/c Cr 90 Tds amounting to 10 paid to government in particular due date 19 Based on Internal Revenue Service rules, what criteria distinguish a consultant from an employee? A A person must know the accounting principles and company management in account dept., how to tackle the situations in accounting criteria and full responsibility of company accounts. OR Do you have control of their time? Employee: In hiring a employee you control what will be done and how it will be done. Do they share the responsibilty for income taxes? Consultant: In hiring a consultant you have the right to control and direct the result of work and not the means and methods of accomplishing the result 20 what is the job description of a payroll officer? A 1. Collection of attendance / collation of attendance 2. Scrutunizing the received attendance 3. Calculating the salary as per the attendance, based on LOP received 4. Once the Payroll Processing is over, the gross salary should be checked with Master Data of salary. 5. Netpay has to request for bank transfers / cheque 6. Need to take care of statutories like PF / ESI / PT / Income Tax 7. While processing salary, statutory deductions like PF / ESIC / PT and income tax calculations tobe taken care. 8. Arriving the salary structure for New Joiners 9. F&F tobe done for resigned employees 10. PF & ESI Nomination has to take care for the new joiners 11. PF Settlement / PF transfer has to take care for the resigned employees after 60days from the date of resignation. OR

It differs from company to company, If you are in In-house payroll, then a) Maintaining the attendance, b) CTC calculation for new joining, c) Investment details of employee All three things you need to collect and sent it to BPO payroll team for processing and check the reports given by the BPO team. If you are in BPO payroll you need to collect all above detail from client and process the same and provide the report to client. 21 How higher management in an organization gets benefited by payroll reports? A It gives information about Cost to compay employee wise, Head count of the Company, Amout paid to Government (PF, ESI, PT, Income tax, etc..), Average Salary paid to the candidate, Projection for next month payroll, New joinee details, Resignee details. OR It helps the management to find whether the human resources working in particular department is profit or loss to the organization based on the total salary paid for particular department 22 What are Payroll source documents? A The Payroll source documents are the employee Time Sheets (or equivalent) that record when the employee worked and generally what they did. These records are subject to audit by the Labor Department, EEOC and probably others that I haven't encountered. These should be bound into a Payroll Source Document folder. However, there are other employee documents that need to be retained, e.g., their original employment application, employee reviews (if you do them),that record their federal/state tax exemption choices,reporting their annual wages and withholdings, etc. These can be filed in separate Employee files (by employee name or number) -- or simply integrated into the Payroll Source Document folders (in the week in which they occur). I very much favor the latter -- especially if you're doing computer accounting -- in keeping with my "always file chronological" bias. 23 What is Payroll Journal? A A payroll journal is like a payroll register. It has salary, bonuses, commission in other words earnings, any deductions such as 401k, fsa etc, state and income taxes etc. It shows the gross salary less any deductions "Net pay" for the period. 24 What is Payroll transaction? A Payroll Transaction is nothing but the calculation of salary for a month / week / day of an individual / group of employees depends upon the attendance / variable inputs / other benefits / salary component and generate the reports for IT / Statutory / PT payments. 25 what is pf and esi compliance work details in bpo A provident fund process: form-2 - tobe collected from new joinee for pf nomination & declaration form-5 - tobe filed every month ( addition of employee for the month) form-10 - tobe filed every month ( deletion of employee for the month) challan-12a - tobe filled and paid for monthly pf contribution amount form-6a - tobe filed yearly ( annual returns contribution) form-10c / 19 - tobe filled by resigned employee for withdraw the contributed pf amount after 60days from the dor form-13 -tobe filled by resigned employee to transfer the contributed pf amount after 60days from the dor. esic process: form-1- tobe collected from new joinee for pf nomination & declaration form-37 -tobe collected from employee for change of employee details from esic returns form-01a - annual information of factory form-3 - returns of declaration forms form-5 - returns of contribution details form-5a - statement of advance payment of contribution form-6 - register of employee form-11 - accident register form-2 - addition / deletion of employee nomination details form-9 - claim for the sickness form-14 - claim for permanent disablement form-19 claim for maternity benefit form-22 - claim for funeral expense form-24 - dependent benefit declaration

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