HI folks,
I have designed a salary structure. Gross income = BP+HRA+TA+DA+SPECIAL ALLOWANCE. Special allowance is calculated to adjust the difference. Other are calculated on percentage basis. Net Income= Gross income-deductions. I want to know, if we are giving a special reward to an employee in a month , how the calculation can be shown with out disturbing the above one and how will it appear in the pay slip?
From India, Kochi
I have designed a salary structure. Gross income = BP+HRA+TA+DA+SPECIAL ALLOWANCE. Special allowance is calculated to adjust the difference. Other are calculated on percentage basis. Net Income= Gross income-deductions. I want to know, if we are giving a special reward to an employee in a month , how the calculation can be shown with out disturbing the above one and how will it appear in the pay slip?
From India, Kochi
1
Hi Maya,
Agree with the views by Ram..it is not compulsory to show the special reward in payroll slip here you have two options..
* Give a cheque alongwith the apprecation letter citing the reasons or instances for which he/she is awarded..
* If the above is not possible then make a header in payroll slip called " others" as a provision/contingency like this one where the amount is mentioned..
Pls remember either way this award would be added to his taxable income..
It is advisable to use the first one to add the personal touch..after all this makes the difference n am sure he/she would remember this for a long time to come..infact i met a gentleman today who is about 45 years fondly remembered the cheque n letter given on the occassion of his marriage 20 year ago.. :D ..
So go ahead make a difference in their lives..
Have a great weekend..
Rajat
From India, Pune
Agree with the views by Ram..it is not compulsory to show the special reward in payroll slip here you have two options..
* Give a cheque alongwith the apprecation letter citing the reasons or instances for which he/she is awarded..
* If the above is not possible then make a header in payroll slip called " others" as a provision/contingency like this one where the amount is mentioned..
Pls remember either way this award would be added to his taxable income..
It is advisable to use the first one to add the personal touch..after all this makes the difference n am sure he/she would remember this for a long time to come..infact i met a gentleman today who is about 45 years fondly remembered the cheque n letter given on the occassion of his marriage 20 year ago.. :D ..
So go ahead make a difference in their lives..
Have a great weekend..
Rajat
From India, Pune
Hi Ram,
Thankyou for the info. The question arised when we developed an HR software for our internal usage. And we want to generate the salary monthly automatically. i got a doubt whether the gross income is fixed or not. The incentives and bonus given occassionally should affect the GI or not? or it should be added to the GI and the result is given a different term. ?
if gross income is supposed to the fixed salary, then i believe these incentives should not show a variation in GI when all the time we give some additional benefits.
I hope you are clear with my doubts. if i am making it manually, i can manage, but once its goin to get automated, i should be clear. please give your suggestions on this too.
Thank u ram
Regards
Maya Mathew
From India, Kochi
Thankyou for the info. The question arised when we developed an HR software for our internal usage. And we want to generate the salary monthly automatically. i got a doubt whether the gross income is fixed or not. The incentives and bonus given occassionally should affect the GI or not? or it should be added to the GI and the result is given a different term. ?
if gross income is supposed to the fixed salary, then i believe these incentives should not show a variation in GI when all the time we give some additional benefits.
I hope you are clear with my doubts. if i am making it manually, i can manage, but once its goin to get automated, i should be clear. please give your suggestions on this too.
Thank u ram
Regards
Maya Mathew
From India, Kochi
Hi Rajat,
thank you for the reply and information. i have mentioned my persisting issue in the other post . please give your idea too. i have decided to give a letter to the employee for winning the award. thanks
Looking forward for the reply
Rgds,
Maya Mathew.
From India, Kochi
thank you for the reply and information. i have mentioned my persisting issue in the other post . please give your idea too. i have decided to give a letter to the employee for winning the award. thanks
Looking forward for the reply
Rgds,
Maya Mathew.
From India, Kochi
Dear Maya,
Well, the practice followed in this neck of the woods is to give the award as a percentage of either: (i) Basic, (ii) Basic+DA (iii) Gross Pay.
The second system I have sometimes followed is to link the target achieved (Sales target in Rs.) and pay as commission as per percentage of the amount.
Both the above methods can easily be programmed into your Salary Generation Software by making few minor changes.
In conclusion I would like to say if you are paying at an adhoc basis then you will have to go for it manually or have to make some changes in the basic structure of the software if you pay as per slab basis. In the latter a separate software similar to Income Tax calculator is made and the incentive is generated which is finally linked to your main program.
Revert back for further assistance.
Kind Regards,
SC
Regards,
SC
From India, Thane
Well, the practice followed in this neck of the woods is to give the award as a percentage of either: (i) Basic, (ii) Basic+DA (iii) Gross Pay.
The second system I have sometimes followed is to link the target achieved (Sales target in Rs.) and pay as commission as per percentage of the amount.
Both the above methods can easily be programmed into your Salary Generation Software by making few minor changes.
In conclusion I would like to say if you are paying at an adhoc basis then you will have to go for it manually or have to make some changes in the basic structure of the software if you pay as per slab basis. In the latter a separate software similar to Income Tax calculator is made and the incentive is generated which is finally linked to your main program.
Revert back for further assistance.
Kind Regards,
SC
Regards,
SC
From India, Thane
Hi Maya,
The gross income is normally a fixed income and the reward schemes need not necessarily reflect in the pay slip. As rightly indicated by Rajat, a personal letter would significantly add value of the reward scheme rather than merely adding a row in the payslip and handing out some money. The scheme would be of more significance if the reward is handed over in a public function.
So the accounting part of this reward payout can be resolved by adding a account sub head under Reward. To summarise:
The incentives and bonus given occassionally should not affect the GI.
From India, Pune
The gross income is normally a fixed income and the reward schemes need not necessarily reflect in the pay slip. As rightly indicated by Rajat, a personal letter would significantly add value of the reward scheme rather than merely adding a row in the payslip and handing out some money. The scheme would be of more significance if the reward is handed over in a public function.
So the accounting part of this reward payout can be resolved by adding a account sub head under Reward. To summarise:
The incentives and bonus given occassionally should not affect the GI.
From India, Pune
hi maya
i get u,, better as u r developing a inhouse software means provide a separate column other than the main part in which u can add these rewards as rewards are not given to all n not each time right,, i too suggested this only wen v build a software.....
hope this ll support u..
regards
ram
From India, Madras
i get u,, better as u r developing a inhouse software means provide a separate column other than the main part in which u can add these rewards as rewards are not given to all n not each time right,, i too suggested this only wen v build a software.....
hope this ll support u..
regards
ram
From India, Madras
Hi gautam ,ram , swasthik ,
thankyou for the help. i have made bonus income without affecting the gross income by adding an additional reward column. it will add to GI if any .
Pay slip will give with out showing the additional reward.
The software is getting ready and i ve to test it live. once i use it, i may face difficulties .
I request you to help me in need as i am new to the HR field.
Thankyou very much friends...
Regards
Maya Mathew
From India, Kochi
thankyou for the help. i have made bonus income without affecting the gross income by adding an additional reward column. it will add to GI if any .
Pay slip will give with out showing the additional reward.
The software is getting ready and i ve to test it live. once i use it, i may face difficulties .
I request you to help me in need as i am new to the HR field.
Thankyou very much friends...
Regards
Maya Mathew
From India, Kochi
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