Payroll
Payroll overview
OfficePortal Payroll streamlines payroll management, a vital aspect of organizational operations, ensuring full compliance with government standards. This cloud-based payroll software empowers businesses to execute precise, on-time employee payroll processes, backed by OfficePortal s exceptional technical support for optimal results. Updated with the latest statutory compliance, OfficePortal adheres to the Income Tax Act s regulations, enhancing payroll [ ]
Dashboard
The OfficePortal dashboard provides a comprehensive view of payroll expenses throughout the financial year, utilizing graphical representation via column charts and tabular displays for different datasets. Here s how it s structured: Graphical Representation of Monthly Payroll Expenses: Utilizes a column chart to visually represent monthly payroll expenses. Provides filters for viewing data on a monthly and [ ]
Pay runs
Pay run is the act of processing salary payments to the employees for the pay period usually a month or the no of days employees worked in a month. The first pay run and the subsequent pay run periods are derived from the settings configured on the pay schedule page and to configure (or) view the [ ]
Loans
The loans section allows you to keep track of all the interest-free or concessional loans you have given to your employees. Add a new loan Select the employee s name from the list for whom the loan is being recorded. Then, you can either choose the loan name from the list of loan types or create a new loan type by tapping [ ]
Salary Components
Salary / Earning Component What is salary or earning components? Employees are getting paid salaries for the time and effort they have rendered to the employer in exchange for their services. Salary payment is usually paid in a structure with multiple earning components included in it such as basic, different allowances, perquisites, etc. The total [ ]
What is the Basic Salary
https://www.youtube.com/watch?v=Vbi5fV9Dwo0 ab_channel=OfficePortalHrms Basic salary definition The basic salary is the foundation of an employee s salary structure and is used to calculate other components of the salary and other perks. Basic salary is typically calculated as a percentage of the employee s total compensation package and is used to determine various deductions such as income tax, provident fund contributions, [ ]
Understanding and Optimizing Your House Rental Allowance
Introduction Definition of House Rental Allowance House Rent Allowance (HRA) is a type of financial benefit provided by an employer to its employees to cover their housing expenses. This allowance is usually a fixed amount paid as part of an employee s salary package and is intended to help employees meet the cost of renting a [ ]
Unlocking the Benefits: The Complete Guide to Conveyance Allowance
What is Conveyance allowance? Conveyance allowance is paid to meet the expenses in the performance of official duties during working hours. Employees cost during official travel expenses on daily basis is called conveyance expenses. Employees are required to travel between places for official duty during working hours for performing the assigned task. During the travel, [ ]
Transport Allowance
Transport allowance is included as a salary component in employees salaries to meet the expenses of traveling home to the workplace. Costs spent by employees while commuting from living place to workplace and vice versa are exempted from taxable income within the allowable expense limit. Earlier conveyance allowance received as salary component is exempted up [ ]
Travelling Allowance
What is travelling allowance? Travelling allowance is paid by the employer to meet the cost of travel on an employee’s tour or transfer. Travelling allowance includes the cost of airfare, train fare and any other transportation costs. Any such allowance is paid by the employer to meet the ordinary daily expenses incurred by an employee [ ]
How to calculate the bonus in an easy way?
What is Bonus? Bonus is an additional remuneration paid to employees excluding the regular monthly salary. A bonus is also called a performance bonus or yearly bonus which is usually paid once or twice a year. Bonus is usually calculated based on the financial performance during the year and paid as per company policy. The [ ]
Commission
What is commission? The commission is the additional compensation paid to an employee when the target performance is achieved. It is provided to motivate the employee’s performance and is usually paid as a percentage linked to the achievement. For instance, the sales commission paid to the salesman when they achieve 100% sales will vary and [ ]
Children Education Allowance
What is children s education allowance? Child education allowance is paid to the employees to meet their children’s educational expenses. It is exempted up to rupees 100 per month per child and up to a maximum of two children, with a maximum exemption of rupees 2400, as per Section 10 (14) of the Income-tax Act, 1961. [ ]
Leave Encashment
What is leave encashment? Leave encashment is the money received in exchange by an employee for unused leaves during that financial year. The encashment of leave balance can be availed by the employee during the service, retirement, or resignation. How is leave encashment considered? Employees are qualified for different types of leaves such as sick [ ]
How is Gratuity Calculated?
What is Gratuity? Gratuity is one of the settlement benefits, which is paid by employers to the employee at the time of his/her retirement from the organization. The gratuity amount is paid as gratitude for the services rendered by the employee during the period of employment. Gratuity is payable to a person on resignation, termination, [ ]
Notice Pay
Notice Pay What is Notice Pay? Notice Pay refers to the amount that an employee is eligible and may receive in lieu of providing services during a “Notice Period,” which will be as per the offer letter agreement between both the employer and the employee to serve the employee’s separation from service date. When an [ ]
Fixed Medical Allowance
What is fixed medical allowance? Medical allowance is a fixed salary component paid to the employees as part of their salary CTC to meet their medical needs. Medical allowance is paid every month no matter whether the employee submits the medical bills as proof of the expenses. Fixed medical allowance is provided along with the [ ]
City Compensatory Allowance
What is City Compensatory Allowance? Employees salary is often not enough to meet the rising prices, especially the cost of living in metro cities. City Compensatory Allowance is one of the salary components employers offer to their employees to meet the increasing cost of living in the metro and large cities. This is offered to [ ]
Daily Allowance
What is daily allowance? The daily allowance is the cost that would reimburse the employee if he/she has gone to stay outside on official duty. IT companies pay daily allowance to their on-site employees to meet their local expenses such as food and local conveyance. Allowances paid during transfer or tour, to meet the ordinary [ ]
Dearness Allowance
What is Dearness Allowance? Dearness allowance is calculated as a fixed percentage of the basic salary and given to employees against inflation and changing economic pressure. Dearness allowance is fully taxable at the hands of the employee. Dearness allowance is known as DA by its short form in India and is usually part of the [ ]
Helper Allowance
what is helper allowance? Helper Allowance is any such allowance, granted to meet the expenditure incurred on a helper where such a helper is required to perform the official duties. Employees sometimes require additional support to complete their official duties on time. Some of the jobs by nature require additional helper support based on the [ ]
Hostel Expenditure Allowance
What is the hostel expenditure allowance? Employees kid s educational-related expenses are many and one of them is their hostel expenditures. Hostel expenditure allowance is included in salary packages as a marginal relief for employees to get an exemption for their kid s hostel expenses. Hostel expenditure allowance is exempted as a fixed amount up to a [ ]
Uniform Allowance
What is a uniform allowance? Uniform allowance is paid to meet the expenses related to the purchase and maintenance of uniforms for performing an employee s official duties. Often employees are required to report in their official uniform while performing their tasks, especially in factories, hospitals, and many other industries to distinguish the employees department-wise, designation, [ ]
Books and Periodicals Allowance
what is the Books and periodicals allowance? Books and periodicals allowance is paid seldom as a salary component mostly in high CTC structures or for supervisory cadre employees. Employees often incur expenses on books, newspapers, periodicals, and journals and are allowed to get the reimbursement of the expenses from the employer which is exempted from [ ]
Research Allowance
What is research allowance? Research allowance is paid for motivating the research pursuit in academic and professional projects by the employer. Research allowance is paid usually in pharma, automobile, and tech companies where there are constant product development is under process. Many companies provide a separate portion of the CTC for incurring external training expenditures, [ ]
Food Coupon
Food coupon What is a food coupon? Food coupons provided by employers to employees through non-transferable vouchers which can be used only at the canteen provided by the employer may be tax exempt only if the cost of such meal is up to Rs—50 per meal. In case of cost of the free meal is [ ]
Custom Allowance
Any allowance given to the employees based on the organization operating model to facilitate in performing the duties for a job well done by enhancing the speed is a custom allowance / miscellaneous allowance. OfficePortal has configured a custom allowance as a key/ gateway to create multiple additional allowances as per the user’s desire. i.e., [ ]
Food Allowance
What is food allowance? Employee’s salary CTC has many components and one of them is food allowance. Usually, manufacturing companies will have food allowance as one of the salary components and service-based companies will offer food allowance for their employees who are all working during the night shift. Free food and beverages provided to the [ ]
Project Allowance
Project Allowance What is project allowance? Project allowance is paid by the employer to the employees who are engaged in a specific project to compensate for the expenses incurred due to their engagement in the project. Project allowances are usually paid for a particular project, or another specific branch of work in an organization and [ ]
Holiday Allowance
What is a holiday allowance? Holiday allowance is the salary amount payable to an employee if he works on a declared holiday and the amount is fully taxable. Overtime salary is paid when the employee work on a normal calendar working day more than the shift hours. Holiday allowance is a benefit that some employers [ ]
Reasons Why Telephone Allowance is a Valuable Perk
Telephone allowance Introduction In today s world, it is essential to stay connected with people for work purposes, especially in a corporate environment. One of the ways to maintain communication is through the telephone. However, the cost of telephone services can be a significant burden on employees, especially in a country like India, where the call [ ]
Employee summary
The employee summary page shows a columnar view of employee wise salary details for the current pay run such as gross salary, paid days, deduction, taxes, benefits allowances, reimbursement, and the net salary payable. You can also manage the employee’s salary process from the summary page, and they are listed below. The edit option [ ]
How to import previous payroll data easily to OfficePortal
Previous payroll data import Importing previous months payroll data is an essential task to keep up-to-date payroll records under one software when companies switch between different payroll applications during the same financial year. It is convenient for companies to keep all the payroll data in the same financial year in one place instead of juggling [ ]
Pay Schedule
The pay schedule refers to the monthly salary calculation and salary payment date. The employer calculates the no of workdays and will credit the payment to the employee s bank account on the selected payday. When is the first pay period? You can select any month as your first pay period, on which month you would [ ]
Taxes and deduction summary
The tax deduction summary view shows all the statuary deduction details by their total amount for this pay run. The tax details are shown by statutory components like Income Tax (TDS), PT, Pre-tax deductions such as EPF, ESI, and Post-tax deductions like “Loan”.
Pay run summary
Pay run cost summary Pay run cost summary is a report that shows the total cost for this pay run with a pie chart representation of the total cost. It displays each detail such as net salary, income tax (TDS), PT, EPF, ESI, LWF and the total payroll cost. It helps the companies to manage [ ]
CTC Components
What is CTC Components CTC Components refers to the Cost to Company that occurs to the company in a year on each employee. Cost to Company (CTC) refers to the employee s salary package, inclusive of all direct components such as basic pay, reimbursements, various allowances, commission, gratuity, variable pay, bonus, etc. CTC also includes indirect [ ]
Earning Components
Earnings are the total compensation earned by the employee as monthly salary in cash or at their bank accounts. Earnings are direct benefits received from the employer and are taxable. Earning components or salary components are structured by the employer to arrive at their employee s gross monthly salary. Salary components are calculated based on the [ ]
Reimbursements
Reimbursements are covered for a year and enabled for the payroll period. Reimbursements allowed under FBP are exempted from taxable income subject to submitting the bills related to the reimbursement. You can configure reimbursements based on your organization s policy under Settings Payroll settings CTC Components Reimbursements. The following are the reimbursements available for [ ]
Statutory Components
Statutory components are the mandatory deduction that is deducted from the employee’s salary by every month. The employer calculates the deduction amount of every employee and the corresponding employer contribution and then process the net salary to the employees. This deduction will vary based on the salary of employees as per the slabs and limits specified [ ]
Professional tax
The state government levies a professional tax, and it is used towards the improvement of services for professionals in the state. As per Article 276, the State government is authorized to levy a professional tax for a maximum of Rs 2,500 per person and cannot charge more. It is levied on employees, a person carrying [ ]
Labour welfare fund LWF
The Labour Welfare Fund (LWF) scheme is an initiative by the Indian government to improve employees standard of living in the unorganized sector. Labour welfare fund is constructed for funding activities towards employee welfare in the respective states, also calculated automatically based on the company profile and the location of its operation. This act has [ ]
Deductions
Pre-Tax Deductions Pre-tax deductions are those excluded from the gross salary before arriving at the employee s taxable income. To Add new Pre-tax deductions Post-tax deductions Post-tax deductions are applied after the tax calculation from the taxable monthly gross salary. To add new Post-tax deductions
Contractor Pay Option
OfficePortal’s Contractor Pay Option simplifies contractor payroll management, ensuring accuracy and compliance. Follow these steps to get started: 1. Set Up Contractor Profiles Add the contractor’s profile in OfficePortal. Set the employment type to Contractor. Enter the contractor’s PAN number to enable customizable TDS values. If the PAN number is not entered, a default 20% [ ]