Payroll Accounting and Statutory Deductions Guide
Connect salary records, deductions, payments and ledger entries.
Connect salary records, deductions, payments and ledger entries. Use the sections below to understand the practical decisions, records and compliance points before taking action.
Build a controlled payroll input
Use approved employee masters, attendance, leave, joining and exit data, salary revisions, incentives, reimbursements and recoveries for the period.
Separate earnings and deductions
Map basic salary, allowances, bonuses, reimbursements, employee deductions, employer contributions and payable balances to appropriate ledgers.
Reconcile the payment file
Net salary payable should agree with approved payroll and actual bank disbursement. Failed or returned payments require separate tracking and correction.
Track statutory balances
PF, ESI, professional tax and TDS can create employee and employer liabilities. Applicability, rates, due dates and filings require current-law review for the business facts.
Post month-end entries
Record payroll expense, employer contributions, deductions and payable balances using an approved journal supported by the payroll register.
Protect confidential information
Limit payroll access, avoid uncontrolled email sharing and retain only necessary records under a clear access, backup and retention process.
Official References
Rules and portal requirements can change. Review the current official material relevant to the proposed company.
This article provides general information and is not a substitute for legal, tax or investment advice. Applicability should be reviewed for the proposed entity and current law.