Payroll Component are a building block of any payroll software and it varies across organization as requirement of each organization is quite dissimilar , the component can be same across organization but the calculation method is totally different . Our Payroll Component Management has been developed to address this diverse requirement.
Payroll Component Management Module by SaralPayroll allows you to define custom payroll structure for your organization. Payroll Components can be defined as the basic element needed for the calculations of employee remunerations. All the components required in defining the payroll structure are defined here. It gives you option to define component as an earning, deduction, tax, employer contribution, variable earning or variable deduction. You can also the select the method of calculation whether on amount or formula
Component Management has provision to add statutory components, these components are already created in the system, you can check to activate these components in SaralPayroll. Following Statutory Component are present in SaralPayroll.
Employee Provident Fund (EPF) : Employers and Employee Contribution is equal in P.F which 12%. This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts. 8.33 % on Family pension Fund and 3.67 % on Employee Provident Fund E.S.I.C: E.S.I.C is also Statutory Deduction from employee whose GROSS salary is less than or equal to Rs. 15,000/-. E.S.I is calculated on Gross Salary of Employee @ 1.75% as Employee contribution and 4.75% from Employer Contribution there by totaling to 6.5% of Gross Salary. Professional Tax: Professional Tax is a Tax which is levied by the State on the Income earned by way of profession, trade, calling or employment. This Tax is levied based on slab rates depending on the Income of the Individual.
Add Payroll Component
Add Payroll Component allow you to define customized payroll components for your organization by defining the type Earnings, Deduction , Employer Contribution Variable Earning , Variable Deduction and the method of calculation amount or formula.
Basic, HRA, Travelling Allowance
Components which adds up in salary
Components which gets deducted in salary
Component paid in month
Employer Contribution for PF
Paid by Employer
Define Component on Amount
Component Management allows you to define components on amount i.e. directly on the value.
Define Component on Formula
Component Management formula builder allows you to define formula for the components which can be dependent on single/multiple components
SaralPayroll Component Management System helps you add and use from the inbuilt list of statutory components and use these components in Payroll Structure. As the formula are fixed as per Statutory laws of India for the statutory components like Employee State Insurance Contribution (ESIC), Employee Provident Fund (EPF), and Professional Tax (PT) are already defined in the system, and can be used directly.
Variable Component are defined as component which are assigned to an employee in a particular month Variable component can be created on earning as well as deduction and can be defined on amount as well as on formula.