Assignment:
Task to Complete:Prepare CTC structure for each employeePrepare salary statement for the month of AugustIssue payslip to each employee for the month of August
FINC Finance Private Limited has started business during the year and hired employees with following salary and other details:
Note:
- Employee codes format: FINC 101
- CTC Structure: Basic – 40% of Gross Salary; HRA-40% of Basic; Other Allowances – 44% of Gross Salary.
- Assume Company has taken PT, PF and ESI registration.
- Assume PT for the month is Rs.200 if the Gross salary is more than Rs. 25,000.
- EPF is calculated at 12% of Basic, restricted to Rs.1800 per month
- ESI is calculated at 0.75% of Gross Salary if the Gross Salary is less than Rs.21,000
- Company assumes standard 30 working days in all months.
- Employees are eligible for gratuity of 15 days salary per annum. Only for the purpose of calculation of gratuity, number of days in a month to be taken as 26 days.
- Marketing team members are eligible for the variable pay at 15% on CTC upon achieving target and 25% on above target.
- TDS deductible for Suvarna Bhat is Rs.2580 per month, For others Zero
- Nandan K has taken loan and monthly deductible amount is Rs.2,200
The company also provides medical insurance to all employees, based on the following monthly salary ranges:
Check your answers:
Net Salary Payable for Nandan K for August is ?
Net Salary payable for Suvarna Bhat for the month of August is ?
What is the total Gratuity Provision the company needs to account for?