Calculating employee’s salary & pay structure is generally referred as payroll. Some companies also address the employees on salary basis as employee on payroll. The payroll works in a simple manner; employees working hours are calculated as per the company policies & he/she is paid against his/her services offered to companies. Earlier this process was done manually. Today, in small companies this may be done manually, but in medium or big companies most of the payroll processing is done through payroll software.

Payroll is automatically calculated by the payroll software based on the following factors:

• No. of working days of employee
• No. of present days
• No. of absent days
• PF/ ESI deduction
• Other taxes deduction

Payroll or salary is calculated after computing all the deduction & final salary is disbursed to the employees

Steps in payroll process:

• Establish your employer identification number
• Collect relevant employee tax information
• Choose a payroll schedule
• Calculate Gross Pay
• Determine each employee’s deduction
• Calculate net pay & pay to employees
• Keep payroll records & recheck for errors if any
• Other considerations (If any)

Free software is definitely available in the market. You can also go for the free software, but in practical situations free software provides you with very limited features. Therefore it is better you go for paid advanced software like Sunshine HR Payroll , with detailed features to help you manage your payroll easily.