Payroll, at its most basic, is the process by which an employer pays an employee for work performed. If you own your own business, but don't have any employees, then you don't have to worry about payroll. But as soon as you hire your first worker, you have a responsibility to pay that employee on time and the correct amount.
If your business has one or more employees, you should have a payroll management system in place. An automatic payroll process helps you comply with legal and tax requirements and simplifies the process of paying your employees.
A payroll management system helps you to calculates the amount you owe your employees based on factors such as the time they worked, their hourly wages or salaries, and whether they took vacation or holiday time during the pay period. A payroll system involves everything that has to do with the payment of employees and the filing of employment taxes. The system adjusts gross pay by calculating and subtracting taxes and other withholding amounts.
A payroll management system also processes tax information and helps you comply with your tax obligations. A payroll processing system can also calculate the amount of payroll tax you owe and automate your payments to taxing authorities.
Payroll reports can help a business manage one of its highest expenses -- labour. A payroll system generates a multitude of reports for hourly and salaried employees.
As per the provision of the domestic tax laws every employer is required to estimate the annual tax liability of its employees in respect of salary expected to be paid to the employee and any other income reported by the employee. Thereafter, employer must withhold appropriate taxes at source from salary paid to them.
The Company is required to undertake compliances under PF law. In this regard, scope of work shall be as under: