FAQ-Payroll

1. What is Gen - Payroll software all about?

Answer: Gen - Payroll is a comprehensive and powerful HR tool for calculations of various components of Salary earnings and deductions such as P.F., ESI, Professional Tax, Bonus, Arrears, Loans and Advances, TDS on salary, Leave management, Overtime, etc. and generating Pay-slips, MIS and statutory registers, reports and e-returns for the purpose of employees and management of any organization.

All such work is done in the precinct of Indian laws related to Industries, employees, labour and labour welfare.

2. How can we create functionality for calculation of any earning and deduction components?

Answer: We have a dynamic formula creation utility by which even a complex or typical pay out structure depending upon criteria and conditions can also be calculated easily.

3. For how many companies and their further employees’ data can be maintained?

Answer: You can create ‘n’ number of companies and employees data, there is no limitation to create and maintain number of companies and employees in this software.

4. Can we create separate logins for our HR, Finance and Administration, etc. with their individual rights to use this software?

Answer: Yes, as a matter of security reasons for important data we have provided an option through which your management can create different user IDs with differential rights to them for login on the software.

5. Which Labour, Industrial and miscellaneous laws compliances are maintained by this software?

Answer:

e-TDS (Income Tax) Employee State Insurance
Provident Fund Professional Tax
Pension Scheme Payment of Bonus
Minimum Wages Payment of Wages
Payment of Gratuity Contract Labour
Over-Time Arrears
6. What kind of compliances is being filled online by this software?

Answer: Till now following Government departments have enabled online e-filing and so we have done it:

  • PF e-Return
  • ESI e-Return and
  • TDS e-Return.
  • 7. What kind of reports can be generated through Gen-Payroll?

    Answer: The following reports are generated from its user’s specific point of view:

  • Employees and Labour Requirements:
  • Appointment Letter
  • Pay slip generation ( With E-mail & Export facility)
  • Pay Voucher
  • Daily Pay Slip
  • Arrear Slip
  • Form-16,16AA and 12BA
  • Salary Computation Sheet
  • ITR-1 (SAHAJ)
  • Bonus Slip
  • Any other Template Basis Letter or certificate.
  • All other forms of labour and industrial laws such as:
  • Nomination Declaration
  • Withdrawal of PF and Pension amount forms
  • Allotment of SSN number and many more.
  • HR or Mangement Requirements:
  • Attendance Reports
  • Payroll Registers
  • Muster Roll cum Payroll Register of wages and salary.
  • Salary Comparison Sheet
  • Memorandum of Differences
  • Status Report
  • Retirement Report
  • Resigned Employees’ Report, etc.
  • 8. Can we add our routine requirement of Letters and certificates?

    Answer: Yes, you can add Template Basis Letter or certificate such as:

  • Letter of Intent
  • Salary Certificate
  • Relieving Letter
  • No Dues Certificate
  • Experience Certificate, etc.
  • 9. Is there any option to take Backup and Restore?

    Answer: There is option to take Backup and Restore of complete database. It also provides a facility to take Backup and Restore of individual company or organization.

    10. In how many ways I can distinguish employees?

    Answer: There are six types of classification in which you can distinguish your employees:

    Branch Category
    Designation Department
    Scale (Pay Grade) Shift
  • This is the maximum criteria to classify employees that we have provided.
  • 11. Can I maintain a typical kind of Leave structure?

    Answer: Yes, you can maintain different types of leaves structure that an employee can avail monthly or annually as per your organization’s requirements, such as:

  • Earned Leave
  • Casual Leave
  • Bereavement Leave
  • Maternity Leave
  • Paternity Leave
  • Personal leave of absence
  • Sick Leave
  • Medical Leave
  • Compensatory Off
  • 12. Is there any Tax computation facility in it?

    Answer: Yes, Automatic Tax computation facility is given within this software.

    13. What is the miscellaneous information facility?

    Answer: This helps you to get the miscellaneous information like PIN codes, STD Codes, ISD Codes, Distance Search, PAN/TAN-AO codes, Service Tax ranges, Bank BSR and Nodal banks Codes, MICR codes, IFSC codes ,TIN facilitation centres, Valid PAN/TAN etc.

    14. Is there any option to generate TDS Challan and filling the TDS quarterly report?

    Answer: Yes, There is an option to generate TDS Challan and filling the TDS quarterly report on a single click by this software.

    15. Is there any E-mail or Export facility for Pay slips?

    Answer: Yes, Once All Employee’s e-mail addresses saved in Master Details, it can email the pay slip automatically to all or selected employees with user-defined message, subject and in Excel, Word, PDF and HTML Format.

    16. What about the loan setup and User can maintain the loan accounts?

    Answer: One can create setups for desired Loan structure e.g.

  • Soft Loan (usually of small amount): without Interest
  • Loan with Interest: It automatically deducts EMI from monthly salary, etc.
  • 17. Can I file ESI online and what about it’s various forms?

    Answer: Yes, you can file ESIC Challan online and upload the return and further we have added following routine compliances:

  • Monthly Forms ==>> Monthly ESI, ESI Challan
  • Half-Yearly Forms ==>> Form-5, 6, 7, 37, 53, 86, etc.
  • On-line Form-1 (Declaration Form) Submission
  • 18. Is there any Automatic Transfer facility of Master Data of Employees to Next Financial year?

    Answer: Yes, you can Automatically Transfer of Master Data of Employees, Salary setup, Salary Detail, Leave Setup to Next Financial Year with or without resigned employees.

    19. What if reverse salary calculation required?

    Answer: Yes, we do have an option in “Utility” to calculate Reverse salary as many times this is also required.

    20. How can we file PF online through this software?

    Answer: First you need to enter 15 digits “Code no. allotted by EPF” department as a combination of Region code (2), Office Code (3), Establishment Code (7) and Extension Number (3) digits and then you can generate the ECR file i.e. (.txt) file which is finally going to upload on PF website.

    21. What is ESI Number?

    Answer: ESI number is unique number allotted by ESIC department after we apply for registration.

    22. What is ESI Local office?

    Answer: The office of ESIC under whose jurisdiction your office is falling.

    23. What is PTO Circle No.?

    Answer: When you have registered your firm with professional tax department they give you the Professional Tax Officer’s Circle no. under whose jurisdiction your PT is being handled.

    24. How many types are there for Leaves set up??

    Answer: One can create his Leaves set-up as:

  • Calendar year wise
  • Financial year wise
  • 25. Is there any facility for State-wise Professional Tax?

    Answer: State-Wise Professional Tax Forms are there, with its monthly, quarterly and annual returns requirements.

    26. What are the different types of Employers this Software can be helpful?

    Answer:

  • Statutory Body (State Govt. /Central Govt.)
  • Autonomous Body (State Govt. /Central Govt.)
  • Local Authority (State Govt./Central Govt.)
  • Company (as per Companies act, 1956)
  • Branch / Division
  • Associate of Person (AOP/Trust)
  • Body of Individual
  • Individual / HUF
  • Firm
  • 27. How can I add Voluntary Provident Fund (VPF) Contribution?

    Answer: You simply need to add a Head of salary as ‘VPF’ given by default in software in ‘Master Details’ > ‘Salary Setup’ option and required to give its manual or auto calculation and this will include the amount of VPF in ECR challan automatically.

    28. How can I deduct ‘Advance Salary’ taken by employee?

    Answer: If you have entered ‘Advance Payment’ in ‘Salary’ option then for its deduction you need to select ‘Advance’ as Head for Salary in ‘Master Details’ > ‘Salary Setup’ for its deduction, you can deduct this amount on Random or monthly basis. (You can also create Advance Type by going to ‘Master Details’>’Salary Heads’ and add the new field as under Advance category.)

    29. How can I deduct Loan Installments if taken by an employee?

    Answer: If you have entered ‘Employee Loan details’ in ‘Salary’ option then it automatically creates a Head for its deduction as but only thing is we need to add it with deductions in ‘Master Details’ > ‘Salary Setup’ option.

    30. What if I have to Import Bulk Details instead of entering one by one?

    Answer: We have integrated following details which can be imported on bulk basis in one go:

  • Employee details
  • Attendance sheet
  • Salary Sheet (Manual Inputs)
  • Arrears
  • HRA (House Rent allowance)
  • Perquisites
  • Investment Declaration
  • Leave balances
  • Monthly Leave consumed
  • 31. What is PAO Code?

    Answer: PAO means “Pay and Accounts Office” Code usually this term used in Government departments as from which Office payroll (or) salary is getting prepared. Pay and Accounts Office under Central and State Government or similar offices under Government of India / State Government / Union Territories / Autonomous bodies responsible for maintaining the contribution details for subscribers covered under New Pension Scheme. The DDOs functioning as CDDOs will be also be considered as PAO in CRA system.

    32. What is DDO Code?

    Answer:

  • DDO means “Drawing and Disbursing Officer” code required as from which authority the salary is getting disbursed. Drawing and Disbursing officer of Central and State Governments or similar offices under Government of India/State Governments/Union
  • Territories/Autonomous bodies responsible for collection and forwarding of Subscriber details like registration, maintenance, contribution etc.
  • 33. What is CTC stands for?

    Answer: The literal meaning of ‘CTC’ is “Cost to Company” which includes any amount payable by a company as salary, allowances, perquisites, incentives, yearly benefits such as Bonus & ESI; retirement benefits such as Provident Fund (PF), Gratuity, Superannuation, Pension, etc. collectively in a year to an employee.

    34. What are Reimbursements?

    Answer: Reimbursements like

  • Medical
  • Moving & Relocation
  • Personal reimbursements
  • Petty Cash
  • Revenue funds
  • Travel & Food expenses reimbursements
  • Telephone bill reimbursements,
  • Leave balances
  • LTA, etc.
  • Get paid only when done in actual and bill/invoice shown for claim as employee’s have to pay the amount first at their end and then it get reimbursed by the employer, the reimbursements provided for employees may vary from company to company policies.
  • 35. What are the statutory and basic deductions from Salary?

    Answer:

  • PF (Provident Fund contribution),
  • ESI (Employee State Insurance contribution),
  • Professional Tax (depending upon state),
  • TDS (Tax deducted at source),
  • LWF (Labour Welfare Fund),
  • Loan deduction (if any; taken against Salary, PF, etc.)
  • 36. What is Gratuity?

    Answer: Any amount received by an employee who has rendered long and unblemished service to employer after serving for 5 years and more as gratuitous amount is known as Gratuity.

  • Generally it is paid for a retiring employee and employee who are leaving after completing 5 years of service in a company. But in 1972 the government passed the Payment of Gratuity Act that made it mandatory for all employers with more than 10 employees to pay gratuity.
  • Trainees and interns are not eligible for this compensation.
  • Gratuity shall be payable to an “employee” on the termination of his employment after he has rendered continuous service for not less than five years.
  • On his superannuation
  • On his retirement or resignation.
  • On his death or disablement due to accident or disease.
  • 37. How is Gratuity calculated for the purpose of exemption under Income Tax act?

    Answer: Condition: (i) the amount received under the Applicability of Payment of Gratuity Act, exemption will be up to the extent of following:

  • Amount of Rs. 10,00,000/-
  • [Last drawn salary * 15/26 * No. of year of service] (Here, Last drawn salary is for every completed year of service (or) part of the year in excess of six months will be treated as a complete year i.e. 11 years 7 months will be counted as 12 years)
  • Actual amount received as Gratuity.
  • Exemption will be: Which ever is lower among the above three amount.
  • Note: Salary for condition (i) purpose means (Basic salary plus dearness allowance).
  • Condition: (ii) If Payment of Gratuity Act is not applicable; exemption will be up to the extent of following:
  • Amount of Rs. 10,00,000/-
  • [Last drawn salary * 1/2 * No. of year of service] (Here, Last drawn salary is for every completed year of service (or) part of the year in excess of six months will not be treated as a complete year i.e. 11 years 10 months and 25 days will be counted as 11 years).
  • Actual amount received as Gratuity.
  • Note: Salary for condition (ii) purpose means (Basic salary plus dearness allowance plus Commission on sales on Turnover basis).
  • Exemption will be: Which ever is lower among the above three amount.
  • Condition: (iii) Gratuity for government employees is fully exempt.
  • 38. What is TAN number?

    Answer: Tax Deduction account Number (TAN) is a Unique 10 digit alphanumeric code allotted by the Income Tax department to those who have are required to deduct tax at source of income. It is mandatory to quote TAN on all TDS (Tax Deduction at Source) returns (including e-TDS return) or any TDS payment Challan.

    39. What is Professional Tax (PT)?

    Answer:

  • In India, Professional Tax is a state level tax and every state has its own slab of rates. PT is collected on professional services rendered and a fee/remuneration received against such services, trades, and callings or holds an appointment public or private or is employed in any manner in the state for the benefit of the state.
  • Every employee has to pay professional tax on the basis of his earnings. Employer deducts the tax from the salary and remits to state government account every month in specified form.
  • In our “Gen-Payroll” software PT is applicable automatically depending upon the state you have selected under ‘Master Details’ > ‘Employee Details’ > ‘Other details’ > ‘PT Group’. The slab of rates also has an auto input option, just need to enable it once.