EMPLOYEE PAYROLLS

: Payroll is prepared by the payroll department with the following objectives :
i) To determine gross and net earnings of each worker.
ii) To provide information about cost of wages for departments or jobs etc.
iii) To summarise wages according to cost centres
iv) To determine deductions like EPF, ESI, LIC premiums.
v) To help in ascertaining hourly rate of labour cost of each department.
vi) To calculate and summarise employer’s contribution to ESI and PF.
vii)To summarise the cost of overtime premium incurred and cost of bonus payment.
viii)To facilitate management in controlling labour cost by means of comparing actual wages with budgeted wages.