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# Topic : Payroll Method Calculation

A project Submitted to
University of Mumbai for Partial completion of the degree of
Bachelor in Commerce(Accounting and Finance )
Under the faculty of Commerce
By
Sanap Pragati Jayhind
Under the guidance of
Ms.Sonal Shinde.
Changu Kana Thakur Arts, Commerce and Science College,
Sector – 11, New Panvel-410206
Meaning

## • A list of a company's employees and the amount of money

they are to be paid.

Introduction

##  A company's financial list of the salaries, wages, bonuses, net

pay, and deductions of their employees.

##  Within a company, payroll is the combination of all of the

financial records of their employees salaries, wages, bonuses and
deductions.

##  A payroll is a company's list of its employees, but the term is

commonly used to refer to the total amount of money that a
company pays to its employees. a company's records of its
employees salaries and wages, bonuses, and withheld taxes.
Objective to Study

## iv. To study how to wages and salaries calculate in companys.

Features of payroll Method Calculation

 Payroll Management

 Leaves management

 Expense management

##  Reports, payslips, forms

 Record - keeping
Functions of Payroll Method Calculation

## d. The payroll department takes care of wage deductions, record keeping

and verifying the reliability of pay data.
Payroll Calculation Methods with formula

## No. Method Formula

1) Daily Wage Method A) Monthly Gross Salary = (Net Daily Wage)*Present Days
B) Monthly Gross Salary = (Net Daily wage)*Present Days + WO

2) Total Days Method (TDM) Gross Salary = Net Salary * (Present Days + PL+WO+F)/Total Days in month

3) Work Days Method (WDM) Gross Salary = Net Salary * (Present Days + PL)/ Working Days in a month

Where,

## WO = Weekly Off , PL = Paid Leaves , F = Festival Leaves

Payroll Calculation Methods with Examples

## 1) Daily Wage Method

A) Given :
Net Salary = 400 , Total days = 31 , Present days & Paid leaves = 22

Formula :
Monthly Gross Salary = (Net Daily Wage)*Present Days
= 400*22
= Rs. 8,800

B) Given :
Net Salary = 1,000 , Total days = 31 , Present days & Paid leaves = 21 , Weekly off = 3

Formula :
Monthly Gross Salary = (Net Daily wage)*Present Days + WO)
= 1,000*(21+3)
= Rs. 24,000
2) Total Days Method (TDM)

Given :
Net Salary = 10,000 , Total days = 31 , Working days = 27 , Present days & Paid leaves = 27 , Festivals = 0 , Weekly off = 4

Formula :
Gross Salary = Net Salary * (Present Days + PL+WO+F)/Total Days in month
= 10,000*(27+4+0)/31
= Rs. 10,000

## 3) Work Days Method (WDM)

Given :
Net Salary = 11,000 , Total days = 31 , Working days = 27 , Present days & Paid leaves = 25

Formula :
Gross Salary = Net Salary * (Present Days + PL)/ Working Days in a month
= 11,000*25/31
= Rs. 8,871
Need of Payroll Calculations

## 1) A payroll system is software designed to organize all the tasks of employee

payment and the filing of employee taxes.

## 2) These tasks can include keeping track of hours, calculating wages,

withholding taxes and deductions, printing and delivering checks and paying
employment taxes to the government.
Steps for Calculate Payroll

I. Notify Employees
II. Collect timesheets
III. Review and approve timesheets
IV. Enter hours worked
V. Enter wage rate changes
VI. Calculate gross pay
VII. Calculate net pay
VIII.Review
IX. Pay employees
X. Remit taxes
XI. Distribute pay.
Tools used for payroll calculations

2. Paychex

3. Patriot Software

4. Intuit

5. Gusto

6. Zenefits

7. Wagepoint
Techniques used for payroll calculations
1. Cash Method

## 4. Debit Card Method

5. Manual System

6. Accountant

7. Payroll Software

## e. store data such as payslips and annual reports in a secure, easily

accessible system

## 3) information access, quality and control

Importance of payroll calculation
Why is payroll process important for any organization……….

i) Irrespective of the size of the organisation, payroll plays a huge role in maintaining the
morale of employees to the financial stability of the company.

THANK YOU !!!