Payroll Process - TTK Prestige One Intranet · PAYROLL PROCESS Objective To ... Separation Separation ... Details of Confirmation, Promotion, Transfer or any change in location,

Payroll Process

Effective from 1stJanuary, 2017

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PAYROLL PROCESS

Objective

To achieve timely & error free results in Payroll processing.

To clarify roles & responsibilities and process flow to all stakeholders so that process is adhered to

without deviation.

Scope

It is applicable to payroll process of all Permanent/Probation/Trainee employees in MEO category

working in TTK Prestige Limited.

Process Overview

Monthly Payroll Processing by

Payroll Team on 26th & 27th

Data of New employee joining

details not later than 26th of the

month

Attendance Data by 26th of

every month

Yearly Updations - on or before 26th of respective

months

Monthly Updations on or

before 26th of respective month

Payslips updations in

Prestige Intranet Portal

on 1st of every month by

Payroll team

Payroll posting to GL by Payroll

department on 1st of every

month

Reconciliation of Payroll results & posting to FI before 8th of

every month by Accounts

Transfers/

Confirmations/Promotions

data by 26th of respective

months

Separations –Input by respective stakeholders on or

before 26th of the last month of

working

Create/ update employee Master

in SAP by Payroll Team

Payroll Register, Variance

statement prepared by payroll is

checked by H.O.Accounts /

H.O.Commercial on 28th & 29th

Statutory Payment

Information by payroll

1. Employee Life Cycle

Data

Changes

3. Payroll Processing 2. Periodic Data

updations

4. Payroll Process Outcomes

H.O Accounts / Plant

Accounts / Branch Commercial make

statutory payments as per

schedule

Issue to employees in the month of May/June every

year

Confirmed Payroll Data by

Payroll team

IT Form 16 generation

during May /June every Year

Bonus Off Cycle Payroll Run

by Sept / Oct every year

Bank transfer of salary to

all employees by last working day by

H.O.Accounts

Payroll runs for Separated

employees every 5th

Head Count Reconciliation &MIS by Payroll team on or

before 5th

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Phases of Payroll Process

1. Input Phase

1. 1. Changes in Employee Life Cycle

a) Joining

Concerned Plant HR Manager/ Branch Commercial In-charge needs to share hiring details

within 24 hrs of employee joining to enable Payroll team to create new record in SAP

employee master.

b) Separation

Separation steps are detailed in Separation Management Process.

The payroll /full & final settlement will be processed by 5th of succeeding month of the

separation except for retirements.

While serving the notice period, separated employees’ payroll will be processed in regular

payroll cycle except for the last month of working. For e-g , For the employee who has

resigned in the month of Jan-17 & serving 3 months of notice , salary for Jan-17 & Feb-17

will be paid in regular payroll cycle. The salary of March-17 will be processed on 5th April-17

along with his /her full & final settlement.

c) Confirmation, Promotion, Transfer, Change in Pay

Details of Confirmation, Promotion, Transfer or any change in location, or any other

transaction which requires Salary Change would be communicated to the Payroll Team before

26th of the month, in order to carry out the appropriate action in SAP. If these details are not

received on time, the change will be carried out in the succeeding month only.

1. 2. Monthly Data updations

Respective stakeholders should send the following data to Payroll team on or before 26thfor on time

processing payment of salary.

Input Applicability

Branch

Commer

cial

Plant HR

Manager

Sales/

retail

Head

Payroll

Team

Attendance inputs on leave taken & loss of pay ( 26th

of

preceding month to 25th

of succeeding month ) *

Medical reimbursement claims with bills & Medical

Allowance list

Changes in the Professional Tax slabs as per Statute

Canteen deduction

Sunday Working (Supervisors/Officers )

Sales Incentive data

In case of new employee addition :

Sodexho Coupon /Allowance Payment list

Superannuation monthly payment

Coverage Eligibility as per State Law & Rules

Professional Tax Slab

Labour Welfare Fund Amount

* Taken from Attendance Management System

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1.3. Payroll Inputs - Annual

The following actions would be carried out by concerned stakeholders on or before 26th of the

respective month for on time processing payment of salary.

Data/Input Action By Target Month

LTA for Plant Locations & S&M Managers Payroll Dept. October

LTA for Officers & Executives in S&M Payroll Dept. April

Superannuation ad hoc payment Payroll Dept. April

Diwali Gift Coupon / Cash Payroll Dept. October

ISO Payment Payroll Dept. As per MR confirmation

Bonus Payroll Dept. September

Cloth Grant List to Accounts by payroll team Accounts Dept. September/October

Income Tax Computation Process :

o IT Computation Sheet for every month will be prepared by Payroll team and the same

will be sent to Head of Corporate Accounts. After his approval, the TDS deduction will

be effected on taxable Gross Salary by the Payroll team.

o Payroll Team will remind employees through e-mail.

a) To submit their IT declaration form on or before May 25th.

b) To submit the proof of savings declared on or before Jan 31st. Proof not submitted (if

any) need to be submitted on or before March 10th.

o If the IT declarations are not submitted by employee by the said date, the payroll team

will deduct income tax at the rate applicable for his/her taxable gross salary.

o Income Tax on Perks will be computed by Corporate Accounts Department and

communicated to the Payroll Team.

o IT form-16 will be issued to employees to facilitate employees’ to file Income Tax

Returns during May /June.

Annual Increment data updation process

o The changes in the salary parameters & variable pay would be updated in Payroll on or

before 26th of the month in which increment is effected. Variable pay will be paid along

with the salary after deducting tax at source.

o Gross Pay Master has to be prepared in the month of April after Increment Process which

will be used for Variance Analysis every month.

2. Payroll Processing

All the Collected data has to be uploaded into SAP on 26th/27

th of every month by Payroll Team.

Every month, the gross salary for all the active employees on the rolls of the company has to be

compared with the master. The payroll register would be sent to Head of Corporate Accounts for

Plants and to Head of Commercial Department for Sales and Marketing, for verification on 28th&

29th of every month. Appropriate corrective action needs to be taken if variance is found before

closing the payroll & Bank Transfer to employees. The variance statement needs to be signed off

by Payroll& H.O Accounts /H.O Commercial before bank transfer to employees.

Payroll Dept. would provide the final revised payroll register to Accounts Department. Based on

this, H.O accounts team would do the bank transfer of salary to all employees on the last working

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day of the month through NEFT. In case of last day of the month falls on holiday, salary will be

paid one day in advance, based on management discretion.

Payroll department should upload the payslips into the intranet portal by 1st of every month.

3. Payroll Register Reconciliation Phase

Payroll reconciliation is carried out by Accounts department to verify that employees have been

properly paid, expenses are applied to the appropriate accounts and taxes are paid and reported

accurately.

Payroll Posting to GL has to be done by Accounts Department from 1st to 5

th of succeeding

month. Any Payroll module issues have to be sorted out by payroll team before posting of payroll

result into the Fi Module.

By 8th of succeeding month the Accounts Department should do reconciliation and close the

reconciliation process on monthly basis.

4. Statutory Remittance Process Phase

The following payments have to be made to the respective govt department as per following details:

Sl No Task Deadline Input By Payment By

1 Income Tax TDS payment (monthly) 7th

of succeeding

month.

Payroll

Team

H.O Accounts

2 Prof Tax Payment (Monthly) 21stof succeeding

month

Payroll

Team

Branch Commercial

Plant Accounts

3 PF contribution Payment (Monthly) 15th

of succeeding

month

Payroll

Team

H.O Accounts

4 ESI Contribution Payment (Monthly) 21st of Succeeding

month

Payroll

Team

Branch Commercial

Plant Accounts

5 Labour Welfare Fund contribution of

Employee and Employer (Annual)

21 of January of

every year

Payroll

Team

Branch Commercial

Plant Accounts

6 LIC Superannuation Contribution

Payment (Annual)

21 of April every

year

Payroll

Team

HO Accounts

7 LIC EDLI premium contribution

payment (monthly)

21st of Succeeding

month

Payroll

Team

H.O Accounts

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5. Statutory Benefits Administration:

Sl

No

Task Deadline Input By Updation By

1 PF Form 2 (Nominations) Within 24 hrs of employee

joining .Latest by 26th

of the

month

HR Manager Payroll Team

2 ESI Form 1 (Nomination) Within 24 hrs of employee


of the

month


4 ESI Smart Card Form Issue

details

Within 24 hrs of employee


of the

month


5 Gratuity Form F (Nomination) Within 24 hrs of employee


of the

month


6 Superannuation Nomination

Form for Managers (Non

statutory Company benefit)

Within 24 hrs of employee


of the

month


7 PF Form 13 (Transfer Form) Within 24 hrs of employee


of the

month


8 PF Form 19 (Withdrawal

Form)

2 months after

Separation/Relieving


9 PF Form 20 (PF withdrawal in

case of death)

As early as possible with death

certificate


10 PF Form 10 D ( Pension form

in case of death)

As early as possible with death

certificate

HR manager Payroll Team

11 EDLI Withdrawal Form LIC As early as possible with death

certificate


12 Personal Accident Claim As early as possible with death

certificate


13 PF Form 10 C ( Pension

Withdrawal form) – for

service less than 10 years cash

withdrawal/ Above 10 years to

get Scheme Certificate

2 months after

Separation/Relieving


14 PF Form 10 D (Pension on

Superannuation from Service)

On the date of Retirement/

Retirement month 1st Week


15 PF Form 31 (PF Withdrawal

during service - Advance from

the Fund – PF Loan)

On need basis HR Manager Payroll Team

16

PF Form 24 (PF Statement –

“PF Slip” during the service

PF Accumulation Statement)

May/June of every year, When

EPFO, announce readiness of PF

Slip in Web Portal

EPFO EPFO updation,

Retrieval by

Payroll Team.

17 Superannuation Withdrawal

Form LIC

On the date of Retirement/

Retirement month 1st Week


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Frequently Asked Questions in Payroll Process

Attendance & Salary Payment

1. How is my attendance calculated?

Your attendance is captured from 26th of preceding month to 25

th of the on-going month. The leave

availed during that period will be taken into account and salary will be processed accordingly. If

there is any LOP (Leave without Pay) pro-rata salary will be deducted for the period of absence.

2. How do I ensure my attendance is right?

o Please log into Prestige Intranet. Access your Attendance Self Service System. Through this, you

can view your attendance and check if any updations are pending.

o Employees working in non-swipe locations, the Branch Commercial Dept. will monitor through

Attendance Register being maintained at the Branch.

o Please update OD / leave on time.

3. When will I get my salary?

You will get the salary on the last working day of the month through bank transfer to your Bank

account.

4. How do I see my payslip?

You can view and download your payslip from Prestige One Intranet under My HR tab.

5. Whom should I contact in case of clarifications?

You can reach out to your HR Managers in case of any clarifications.

Income Tax

6. What are the documents required to be submitted for IT declarations? When should I

submit the same?

o Please refer to IT Declaration Form 12BB available in Prestige Intranet Portal. It is available under

“Templates” slab.

o You must submit your IT declaration Form 12BB by 25th of May for that financial year

o Jan 31st will be the last date for submitting proof to support IT declarations you made

o The final proof of Income Tax should be submitted before 10th March.

o Failing the above, Income Tax will be deducted according to the rate applicable for your taxable

salary.

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7. To whom should I send my IT documents?

You must send your IT documents to Payroll team at Corporate Office, 2nd

Floor ,Brigade Towers,

Bangalore -560025 with the label “IT Documents”

8. Why should I submit my PAN card details?

If you have not submitted the PAN CARD copy during your recruitment, kindly submit it at the

earliest. Failing to do so, your Income tax liability will be calculated at 20% of taxable salary and

Income tax will be deducted and remitted to the Department.

9. When will Form 16 be issued to me?

It will be issued during May/June of the consecutive financial year. This is to enable you to file

your Income Tax Returns.

Employee Benefits

10. How can I check my PF balance?

You will receive PF statement for the period April-March in the month of June/July every year or

the same can be checked in EPF website.

11. What is Superannuation? How can I benefit by this?

o Company has got Superannuation Fund administered through LIC of India for the benefit of post

retirement security of the employee. It is applicable for employees in managerial grades.

o Two months of the Basic salary per annum (i.e.16.66% of your Basic Salary) is the superannuation

contribution by the company towards the superannuation fund. The Superannuation Fund is

managed by the LIC of India.

o Employees in the MG1L1 to MG3L4 can opt to receive the payment as a part of salary yearly or

monthly. Once they choose the option, it has to be followed throughout the employment with the

company.

o Managerial Category Employees in the Grade of MG4 L1 (GM and above / or Head of Function

and above) compulsorily have to contribute to LIC of India, maximum 1 lac balance amount of

16.66% of their Basic is paid as Ad hoc. This is to adhere to Income Tax Notification on ceiling

for contribution to the Superannuation Fund.

o There is a lock period for Superannuation withdrawal, as per the Superannuation Trust Rules. It is

up to retirement or 15 years from the joining the Fund.

12. How can I benefit by Sodexho Pass?

If Sodexho pass is availed, the amount is tax exempt. If the Pass is not availed, the equivalent

money can be received as an Allowance.

13. How to avail LTA exemption?

LTA exemption has to be claimed by employee in the prescribed Form, which has to be submitted

to Payroll Team.

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14. How to make use of Medical Reimbursement which is tax exempt?

By producing bills, you can claim Medical reimbursement. If the bills are not produced, it will be

treated as paid as Allowance, which is taxable.

15. Am I eligible for ESI benefits ? How Do I get my ESI cards?

If your monthly gross salary is below Rs.21,000/- you will be eligible for ESI benefits. ESI Smart

Card will be issued by the ESIC. Company will facilitate the issue of the card to you. Once the ESI

Smart Card is issued, the employees who are covered under the ESI would get the ESI benefits.

16. How Can I have my Pf No. and ESI no allotted to me?

You can view this information in your Payslip from consecutive month after joining.

17. Where my PF contributions are remitted?

It is remitted to Whitefield, KR Puram PF Sub Regional Office, Bangalore 560 036.

Other deductions

18. What is Labour Welfare Fund?

It is statutory contribution and non-refundable to the employee.

19. What is Professional Tax?

Professional tax is the tax by the state governments in India. It is as per the different State Laws.

As per different salary slab, Professional tax will be deducted and remitted to the Commercial Tax

Department. The amount of Professional Tax paid is allowed as a deduction under Section 16 of

Income Tax Act.