Rs.1999/- per month

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.

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• Defining payslip components like basic, variable pay, HRA, and LTA

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• Gathering other payroll inputs (e.g., organization’s food vendor may supply information about the amount to be recovered from the employees for meals consumed)

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• The actual calculation of gross salary, statutory as well as non-statutory deductions, and arriving at the net pay 

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• Releasing employee salary

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• Depositing dues like TDS, PF, etc. with appropriate authorities and filing returns

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In short, we can say that payroll process involves arriving at what is due to the employees also called as ‘net pay’ after adjusting necessary taxes and other deductions.