Monthly Payroll Processing and Generation of Salary Slips

Monthly Payroll Processing and Generation of Salary Slips

Payroll processing is a business function which involves arriving at a due amount called ‘net pay’ to be paid to an employee after careful analysis and deductions of tax etc. To avoid errors and irregularities, the payroll officer must carefully devise the steps to be followed during the payroll process.

What is a salary slip?

A salary slip also called a pay slip is a document that contains an in-detail breakdown of the salary of the employee including deduction of tax etc. for a certain period of time. A salary slip is generated once in a month by the employer. All companies are legally entitled to generate salary slips every month as proof of payment of salary to the employees.

Components of Salary Slip

The following components constitute the income side and deduction side in a salary slip.

Income side

Basic salary
House rent allowance
Medical allowance
Conveyance allowance
Special allowance
Dearness allowance

Deduction side

Professional tax
Employee provident fund
Tax deducted.

We at bestlegalservices.in and our experts can assist you in smooth processing of payroll and generation of salary slips.