Common Misconceptions About Payroll

Common Misconceptions About Payroll


Myth : Payroll means only salary calculation

This is a very common and widespread myth about payroll. Payroll can be coined as a necessary workplace function for employees to receive their earned compensation.

Payroll is an administrative function that involves both human resources and accounting procedures.

Your payroll process combines Time & Attendance, Salary Calculation based on Leave policy, deducting TDS, deducting statutory PF, ESI, PT, Labour welfare fund, reimbursements, incentives, bonus & other items as applicable

While Salary calculation norms are based on your company policy, the rest deductions are subjected to a variety of central / state and local rules and regulations.

Hence payroll is and can never be confined to only salary calculation.

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