Additional Payroll Components
Payslip
Section titled “Payslip”A salary slip is a document issued to the employees by employers. It contains detailed information of all components of the Salary
Form 16
Section titled “Form 16”Form 16 is a document issued by the employer and contains the required information to prepare and file income tax returns. This document needs to be given every month on or before June 15 of next year.
Reimbursements
Section titled “Reimbursements”Reimbursement is the amount paid by the employer to an employee for the official expenses such as
- Official phone calls
- Cab expenses for travel for official purposes
- Meals during official Trips
- Hotel stay during official trips These are non-taxable as they are expenses incurred by employee on behalf of the company
Incentive and Bonus
Section titled “Incentive and Bonus”Incentives are paid for if an employee meets specific set goals. Bonuses are paid in the form of a yearly reward and based on salary of employee, they can be mandatory as explained in Bonus Section
Ad-hoc pay
Section titled “Ad-hoc pay”Ad-hoc pay items include one-off or occasional pay such as annual bonus, incentives (based on performance), festival advance, etc. Employers may further offer salary/wage-advance on employee request, which are also considered as ad-hoc pay.
Income Tax
Section titled “Income Tax”Income tax is a tax imposed on employees income. An employee receives his/her salary after the employer deducts the tax. It s is known as TDS(Tax Deduction at Source). It is explained under a separate section with all details
Employee Investment Declarations
Section titled “Employee Investment Declarations”At the beginning of the financial year, an investment declaration has to be made by the employee to the employer. Basis the declaration, Employer will deduct the tax accordingly from employee’s monthly salary.