Monthly Archives: March 2011

ESI – Coverage

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Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States.

The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.

The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).


The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories


All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.UNION TERRITORIES Delhi, Chandigarh and Pondicherry


Coverage(As On 31 st   March, 2010)
No. of Insured Person family units 14300000
No. of Employees 13896150
Total No. of Beneficiaries 55484000
No. of Insured women 2600250
No. of Employers, etc 406499

Know More Employee State Insurance – ESI

Provident Fund – Employee

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For Employees
For New Entrants:

  • Enrolment: An employee is eligible for membership from the day he joins the covered establishment.
  • If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s)  with the consent of employer.
  • Declare previous employment details, if any, in  Form No. 11  to the employer.
  • On becoming a member of the Schemes file details in Form No. 2 ( family particulars/ nominations) through the employer.
  • Rate of contribution payable by a member shall be @ 12% of his emoluments.
  • A member can contribute statutarily over and above the prescribed rate.

For Existing Members:

  • Enrolment:
  • Any change in the family status, such as, –
    • marriage of the member.
    • additions / deletion in the family.
    • Legal adoption of the children.
    • Change of nominee, is to be filed in Form No. 2 through the employer.
  • In the event the member is holding a Scheme Certificate (under EPS, 95), he should surrender the same to the concerned EPFO office, through his employer.
  • A member is entitled to various benefits & facilities such as withdrawals, advances, pensions, death insurance etc.

For more details visit Provident Fund India Website

How payroll software benefits accounting

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Do you find calculating employees’ salary a very tedious process? If so, continue reading. In this article, I will share with you why you should use payroll software to calculate employees’ salary. The reason why many businesses are starting to use payroll software is because it can automate a lot of processes. It makes calculating payroll much easier.

Good payroll software also allows you to calculate taxes and deduction, as well as to file your tax electronically. A payroll system has many other features. So before you purchase any system, make sure that you find out what your company really needs. Now, let me share with you some things to consider:

The first thing that you should consider is the number of employees you have. If you have less than 10 employees, it doesn’t make sense to buy a payroll system, go for online payroll software. However, if you have a lot of employees and have difficulty finding time to calculate employees’ salary, then it is definitely time to get a payroll system. Payroll software is ideal when your company has a lot of employees as it will automate the payroll process and save you a lot of time. Also, it will reduce the margin of error as we are not doing the calculation manually.

Next, you need to consider the features that you want to have. You should get a payroll system which allows you to do basic payroll accounting, such as salary calculation, commission calculation, department differentiation, electronic tax filing, etc. So get a system that can fulfill your needs.

You can be sure that the last thing your employees want to see is an error in their payroll. So invest in a good payroll system to prevent this from happening.

The next time you ask yourself whether you need a payroll software, consider these 3 things: 1) Spend your valuable time at what you are good at, focus on your business rather on clerical work 2) What features do you need in a payroll system? 3) Explore online payroll software options as well.

Why to have a payroll software

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Payroll Software Should you have employees, payroll duties immediately turn out to be portion of one’s “to do” list. Correct and timely payment calculations are an essential part on the smooth and legal working of any organization. Payroll computer software offers really are a very good strategy to streamline these concerns in your business.

According to the dimension and the intricacies of one’s organization, you will need some form of standardized method of coping with your payroll connected tasks. Payroll program gets to be an increasing number of vital as your firm grows, and computer system technology, adequately harnessed, can be quite a fantastic approach to take care of the mundane duties related to wages and added benefits.

If your workers are all in a single place, and get the job done inside a single location, things are less complicated. If they get a straight salary, and you can find no distinctive differentials, the undertaking is even simpler. Alternatively, using a more dispersed workforce, hourly charges, overtime premiums, or shift differentials, points start out to have an increasing number of complicated. Add many taxation laws for numerous states, union contracts, and so forth, and the requirement for payroll software program turns into much more rapid.

With payroll software all you really need to do to solve these payroll problems is usually to obtain and run a program plan in your personal computer. Not only would it do all your calculations and database operate it might also print checks and pay vouchers when hooked as much as a printer. In some instances, the payroll software comes equipped with typical updates that keep you in touch with every one of the alterations in tax prices.

As your company grows and evolves, the payroll needs of the company will also modify over time. Once the business enterprise is modest, and you also are functioning out of one particular workplace, it truly is feasible, even useful, to keep data manually or working with easy Windows applications like Excel sheets. You can also easily print and distribute shell out checks ideal out of your desktop and your printer.

Nevertheless, as soon as your corporation starts to grow, staff raises, so you have offices in far more locations, payroll application is a beneficial idea to help keep updated and on track with an effective way of managing employee wages and advantages.

Perk Payroll Software

Make Payroll Processing More Efficient – 6 Effective Tips

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Efficiently carrying out your company’s payroll requires proper management. As your company grows, the processing of the payroll will become more complex. Here are some useful management tips to make payroll processing more efficient:

Make sure you have a system to monitor your employee’s time in and time out of the job

In order to perform payroll processing, the hours worked by each employee is entered into the system. Your salary computations could be erroneous without a step-by-step method of keeping track of working hours of your employees. To avoid this problem, you need to ensure the reliable tracking of hours worked by utilizing electronic time clocks and online time loggers.

*Time clocks. Unlike time clocks of old, many newer time clocks calculate the number of hours between “in” and “out” stamps automatically, making payroll calculations much simpler. These units use manual time cards and are recommended for organizations with fewer than fifty employees.

*Computer-based time loggers. To facilitate time keeping in a large business, your computer can act as a time clock either by the submission of a unique identification number or the swiping of an employee identification card. You can download online time logging software from the internet for free or you can buy them using payroll software.

Review salaries for changes or adjustments: –

Before gathering the record of hours worked, make sure you check for changes in employee salaries. Adjust the amounts to include the money needed for salary increases, new hires, deductions or anything that may affect the normal payroll.

Always figure the salary using the correct manual method, or utilize a payroll software system: –

When calculating an employee’s earnings you should understand there is more to it than mere salary. You need to include overtime fees, bonuses, commissions, as well as Provident Fund, ESI, Professional Tax and TDS and other amounts to be deducted in the proper order. In order to avoid confusion on your part or on the part of your accountant, ensure you regularly do follow the same method of computation for all your employees, irrespective of whether you are doing it manually or are using payroll software.

Secure a personal bank account to handle your payroll needs: –

Getting paid means that you must have your own personal bank account. Besides being lawful, a separate account will make it easier for you to differentiate salary payouts from other business expenses. It makes it simple to track the approval tasks.

Make use of a uniform delivery system for checks: –

Though several options are available, the safest and quickest access to your earned money is via direct deposit. The thing to remember is to deliver pay checks in a consistent way so the process is easy to manage with as few slip-ups as possible.

Payday information should be saved in a file that is easy to find: –

Save payroll details for every applicable payday for your convenience. This assists in verifying the payroll of your enterprise and guarantees accurate monthly statements. Finally, always keep printed copies of payroll summaries organized for back up.

You can more efficiently and accurately manage your payroll using these tips, regardless whether you use payroll software or do it by hand. The question of whether to manually compute wages or use software is up to you to decide, depending on which is more beneficial for your company.

Do more research and learn about on Payroll Software

Get more efficient with online payroll software

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The old payroll process, which used to involve old-fashioned punch clock with lots of employees waiting for their time cards to get stamped, is not effective any more. This payroll system has made employees a little worried about human errors that can result in lost wages or delayed payroll processing. Online payroll software gives an opportunity to employees to gain access to their salary and tax information with less paperwork and time connected with obsolete paycheck methods. This service involves sifting through which errors can be found and rectified before having an effect on the pay checks. The other feature of this service is that it sends paychecks straight to the debit card offered by the company, which allows employees to use their money instantly.

Receiving services from a well know web based payroll service provider can help employers in creating new hire forms, applications for unemployment and year-end tax information, without wasting too much time and hence they have more time for more important works. However before choosing a payroll service provider you should be aware of their quality and benefits that they are able to provide. ion as to which plan best suits the needs of your employees.

Questions when choosing Online Payroll Software or

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If you’re in the marketplace for a new payroll and HR system, look at your choices in Software-as-a-Service (SaaS). Contrary to conventional installed and ASP software package products, utilizing SaaS involves no need to install and configure on your machine whilst SaaS providers support the application and maintain your data. Regardless of whether a company currently uses a payroll and HR system in-house program or previously has outsourced to a different producer, businesses could evaluate the positive aspects and prices of utilizing Software as a Service.

Companies employing a SaaS based system for HR and payroll software pay for SaaS on a subscription or per-use license and not an upfront investment, simplifying finances preparing, lowering upfront charges, increasing predictability of installments and decreasing the total cost of ownership. Additionally, upkeep is small as the merchant ***umes the duty for the hardware and software.

Also, Companies using a SaaS based system can log on anyplace with access to the Internet and a compatible web browser letting businesses to process payroll, access HR data or handle benefits administration at all times.  And, because the software is held on the vendor’s servers, the vendor makes developments and deploys replace with out any consumer action required.

Questions to Ask a Software-as-a-service Payroll Company

What does existing customers say about the service?

Find out how many clients the SaaS service presently gives services to and the size of these clients to gauge their level of experience. Customer testimonies also il****rate a way to determine this information.

Which is the service renewal rate?

Find out how much it should cost to renew a subscription to their services and if the rates will stay similar after the original deal.

Which kind of training and customer training do they offer?

Complete training is crucial to be capable to manage and make use of any new application. Ask about what ***istance the vendor can delivers and if there is added charges related with the facilitate and training. Make sure a complete customer support package is available.

What are the integration capabilities?

Learn how the SaaS software should integrate with the rest of your environment and how it can work with your existing systems. Additionally, if the SaaS provider offers more than one company similar to payroll, HRIS and benefits administration, ask if those are on or separate applications.

What is customizable and how often are updates released?

Learn which kind of options they supply and at what price. Make sure the company frequently updates their SaaS application.

How secure is your system?

Ensure they have had a third party audit of the security of their system.

What to Look for in a SaaS Provider

  • Because SaaS based programs run online, availability to access company information is vital. Vendors should offer you 99 % uptime for applications.
  • Integration within the SaaS system is additionally something to look for, in particular if it is meant to function for payroll services, HR information management and benefits administration. Compatibility with present software is additionally vital, to streamline enterprise processes and cut down on data entry mistakes.
  • Guarantee the SaaS provider regularly builds their software package to keep up with constantly changing necessities concerning payroll and HRIM.
  • Determine if the SaaS vendor costs by a subscription or uses a pay-as-you-go for fee of the services
  • Ensure the SaaS company can guarantee the security of the information, in particular with the sensitive nature of payroll and HR information.

Can online payroll software reduce stress

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Ready to move up from manual payrolls or from an expensive payroll service? One fast way to do that is to buy your own payroll software. There’s a cost to owning software though. You must learn how to use the system and then you must keep updating it. Updating payroll software is essential since payroll rules keep changing. Another option you may consider is online payroll software. Here’s what you gain.

Updates By Them.

Stop worrying about software updates. The online payroll people stay busy keeping all the tables and calculations changed to meet the rules. You know just keeping up with changes is a full time job for some people. Who has the time for that? Even if you have purchased software, you most likely are going to need a service just to keep you updated about what to do. Remember, somebody has to keep all the state tax tables updated too. That’s either you or somebody else. It’s easier if it’s somebody else.

Filed By Them Too.

An online service makes electronic tax filing really easy too. That’s one less thing to worry about too. Maybe a lot more than one less thing. Don’t forget about state tax returns too. Then you can include online tax payments too and eliminate more steps and more chances for errors and mistakes. See you get a more streamlined payroll system by eliminating several steps and in effect outsourcing a good part of the payroll process. That’s freeing up somebody to do more important work than worrying about filling out forms and keeping up with those forms and getting them in the mail.

Checks and Deposits.

Integrated with all this you get your payroll checks prepared and ready to print out. Why you can even set up for direct deposit for your employees too. That’s a benefit many people like. But you want more than just the preparation of checks.

Integration With Other Software.

You can get a service that just does payroll check preparation. You probably want much more than that. You want a service that exports data to your main accounting software so there is no need to do any kind of double entering of data. Especially if you use one of the major software packages like tally accounting software, SAP Business One, make sure the payroll system integrates well with whatever software you have. That way everything goes together and all the costs and disbursements go right where they need to be. That’s the way you want it.

You really can make payroll days go easier and faster with online payroll software. Now owning your own software gets you many advantages, but maintaining the software isn’t free or easy either. It’s going to cost you. It may be that it’s cheaper to just let someone else handle much of the updating and maintenance. Use an Internet service as a tool to eliminate waste and spend more time on more productive work. That’s the way to avoid many of the hassles of those payroll days that seem to come just one right after the other in a never ending stream.

Payroll Software Simple Facts

By | Blog, Business, Employee Attendance, ESI, Human Resource, Payroll, Security | No Comments

Whenever you do the illustrations with regards to certain concepts, it can be pretty important to first elaborate the which means of the word that is the standard dilate of the entire picture. Now, as you plan to initiate payroll software program for your company, initially it truly is extremely essential to gain understanding with regards to the computer software and what is its major purpose? Becoming aware of the fact in entire manner genuinely develops your understanding as well as rejuvenates you to arise high inside your work profile.

Payroll plays an essential role inside the company for a number of causes simply because it keeps the records of the employee salary, bonuses, and increments, etc. Each and every employee in any country wait for their salary along with the companies provide the payroll slips, which contain the detail info associated to the income of the employee. Every country announces the spending budget as soon as a year the government employee is very much considering getting the payroll slips to know how much government make a decision to enhance inside the salaries.

Payroll plays an essential role inside the business for several factors because it keeps the records of the employee salary, bonuses, and increments, etc.Every employee in any nation wait for their salary and the corporations supply the payroll slips, which incorporate the detail details associated to the earnings of the employee.oyee. Each nation announces the budget once a year the government employee is considerably considering obtaining the payroll slips to understand just how much government make a decision to improve in the salaries.

Now, let us focus to elaborate the idea of payroll software, what does it genuinely means? The calculations and processing of the payroll that is handled by the organization in a standardized manner is basically a role of payroll software. It also assists in calculating the amount which is adjacent to employees and even persists with records which can be accurate. The essentiality of this software would be to help the complete process to develop into much more efficient.

Certain firms do accomplish to initiate needs concerning payroll as an outsource activity, as thinking about it to be viable. While other businesses agree to, sustaining the procedure in house with persistent to payroll software program is additional practical decision. Retaining to such activity, often proposes you with attaining flexibility caricaturing to high level standards.

This predominant procedure over the companies has influenced working filled with comfort and comfort and additional persists with maintaining the records, that are preferred associated to their primordial requirement. Even the expenses that are to be reimbursed to the employees, has become convenient using the initiation of this software.

Applications of Payroll Software

The software plays an vital role for the firm in receiving rid of the work burden. Numerous small companies prefer to the payroll software program to maintain all information and facts about its employee.

I should suggest that you study research about Efficacy Attendance Payroll Software and also Efficacy Employee Self Service and Online Payroll Software.

What is Payroll Software?

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The term “payroll” mean the sum of all financial records like employee salary, wages, bonuses, and deductions. It encompasses every employee of a company who receives a regular wage or other compensation.

In a company, there are employees who are paid a fix salary and there are employees also who are paid for hours worked or the number of items produced. All of these different payment methods are calculated by a payroll specialist or payroll software then the appropriate paychecks are issued.

In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons:

Accounting Point of View:

payroll is crucial because payroll and taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. Income Tax Act, 1961 India).

Business Ethic Point of View:

Payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee morale requires payroll to be paid timely and accurately.

The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings (Tax deducted at source) and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings (Tax deducted at Source), and deductions from a paycheck.

What is Payroll  Software?

Payroll Software is a computer application that allows you to manage your employee payroll services in a most accurate and easy way. Today, there are lots of Payroll Softwares in the internet like Efficacy Attendance & payroll software.