CHAPTER -1

INTRODUCTION:

Wages and salary are the major remuneration for employees. Payment of
wages and salary and maintenance of pay role records are vital activities
of finance or wage department. While for the work man who includes
machine operator inspectors, maintenance of workmen, clerical staff
technical assistance, and other direct or indirect workmen the payment is
called as ‘wages’. For the officers and responsibilities and where
services can be requisitioned any time the payment is called ‘salary’.

For the purpose of making the system I for payment of wages and salary
has been used which here means wages and salaries for the respective
cadres.

SALARY

MEANING OF SALARY.

The word salary derives from the Latin word ‘solarium’. Any
remuneration paid by an employer to his employee in consideration of
his services is called salary. Lt includes monitory value of those benefits
and facilities provided by the employer which are taxable.
DEFINITION OF SALARY

Under section 17 [1] of the income tax act 1961 Defines Salary
includes:

a. Wages
b. Any annuity or any pension.
c. Any Gratuity.
d. Any advance of salary but not loan for purchasing a car, cycle.
Scooter. Or a house etc.
e. Any fees, commission, perquisites, or profits in lieu of or in
addition to salary or wages.
f. Any payment received by an employee in respect of any period of
not availed of by him.

FEATURES OF SALARY

 Relationship of employer and employee

It is very essential for a payment to fall under the head salaries. That the
relationship of employer and employee must exist between the payer and
the payee. Every servant is an employee but an agent may or may not be
an employee.

Employment and profession.

Employment should be distinguished from profession. If employment is
merely incidental to the exercise of a profession. The gains from such
employment are not chargeable to tax under the head salaries.

 Compulsory deduction from salary,

The compulsory deduction from salary is mere instances of application
of income. The amount such deductions is added back to the amount of
net salary received by an employee.
 Salary of a Member of Parliament [M.P]
The salary of a member of parliament [M.P] is governed by the salaries
and allowances of Member of Parliament act 1954

 Salary or pension of United Nations employee.

Salary paid by the United Nations to its employee is exempt from
taxation act 1947.

BASIS OF CHARGE ON SALARY

 Due Basis
Any salary due from an employer to an assess in the previous year
whether paid or not is chargeable to tax.

 Payment Basis
If any salary is paid by an employer to his employee to an asses in the
previous year before it becomes due to him. Such salary is texted on the
receipt basis

FORMS OF SALARY

 Leave salary
Leave salary is one of the important from of salary. It is also called
enactment of earned leave. Earned leave entitlement cannot exceed 30
days for every year of actual service with the employer who is paying of
the cash equitant of earned leave. The central government has notified
that the maximum limit of 300,000 for employees who retire after1-4-
1998.

 Compensation for Retrenchment

Any compensation received by a workman under industrial disputes act
1947 at the time of retrenchment is called compensation for
retrenchment.

 Fees and Commission

Fees and Commissions are anthore important forms of salary. This is
paid by an employer to his employee for doing any extra work [not over
time] other
  Bonus
Bonus is another form of salary. This paid by an employer to his
employees is taxable as salary in the year of receipt.

 Commutation of Pension
Pension is payable to an employee every month after retirement from
service as per the terms of employment. This taxable as a salary.

 Annuity
Annuity received by an employee from his employer is taxable under the
head salaries. If is received from present employer it is taxable as salary
but it is received from employer it is taxable as profit in lieu of salary.

WAGES

MEANING OF WAGES

A wage is a compensation which workers receive in exchange for their

labor. Wages represents hourly rates of pay. They differ from employees
to employee and depend upon the nature of job, seniority, and merit.

TYPES OF WAGES.

 Minimum wage.
Minimum wage is the one which provides not merely for bare
sustenance of life but also for the preservation of the efficiency of the
worker.

 Fair wage.
Fair wage is understood in two ways, in a narrow sense, wage is fair it is
equal to the rate prevailing in the same trade and in the neighborhood for
similar work. In a wide sense it will be fair, if it is equal to the
predominant rate for similar work throughout the country and for trader
in general.

 Living Wage
Living is stepped high for than wage. Living wage may be described as
one which should enable the wage earner to provide for himself and his
family not only the bare of essentials like food, clothing, and shelter, but
also a measure of frugal comfort including education for children
protection against ill health, requirements of essential social needs.

PAYROLL SYSTEM

In the user story serves the purpose of the problem statement and the
specifications. The user story provided by the client was as follows:
“You are to design and implement a payroll system that should accept
employee hours worked compute net pay and record all a payroll data
for subsequent processing. The system should prepare pay cheques and a
payroll ledger, and maintain data on a sequential payroll file. Non
statutory deductions such as union dues and pension plans to be
made.”The payroll data are employee number, employee name, pay rate,
and union member flag. The year-to-data total should contain eamings,
federal tax, pension plan, and union dues” To accomplish these tasks, we
had to meet with the client to find out exactly what the program is meant
to do. Here are the sub stories that we were able to get form the client.

 The payroll accepts employee hours worked

 The payroll computes net pay
 The payroll record all the data for subsequent processing
 The payroll should prepare pay cheques
 The payroll should prepare a ledger
 The payroll shouldmaitain data on a sequential file
 Non statutory deductions such as union dues and pension plans to
be made
 Year to data total should contain earnings, federal tax, pension plan
and union dues
 Payroll data are employee number, employee name, pay rate, and
union member flag
Terminology Definition

This section gives a definition and explanation of some of the terms used
in the project

Employee Data: this is employees’ information in the company. It

consists of the employee identification number, employee name, pay
rate, pension plan flag, and union member flag.

Payroll Records: the payroll records are used to store each month’s
hours worked, and the rates for that month.

Rates: Rates consists of the percentage that would be deducted from the
gross pay depending on union membership status, pension plan, state
and federal tax. Each employee can have a unique

Payroll Ledger: this is a table that shows the calculated pay of

employees and the month in which they earned the pay. The ledger can
be filtered by name, identification number, year and month.

Hours Worked: this is the number of times that an employee work in a

month the hours worked is used to calculate the pay that an employee
will receive for that month.
Net Pay: the net pay is the final salary amount that would be given to
the employee after all the deductions are subtracted from the gross pay.
The deduction include among others taxes, union member dues and
pension plan.

Gross Pay: the gross pay is the amount that the employee earns before
the deductions are subtracted.

Deductions: Deductions are made up of taxes, union membership dues,

pension plan. They are subtracted from the gross pay to give the net pay
which is the employee’s final pay for the month

Taxes: The taxes consist of the state dues and federal dues. A
percentage of the employee’s salary goes to state and country.

Union Membership Dues: This is meant for employee’s that are union
workers in the company. They get to pay a percentage for union dues.
An employee can be a union member and later change status to be a
non-union member.

Pension Plan: Employees that opted to use the pension plan of the
company get to pay a particular percentage of their pay in preparation
for their retirement.

Pay slip: These are similar to pay cheques. They allow the employee to
have his or her pay printed out on paper so that they can cash it.
Year-To-Date Total: The year –to-date total is the summation of all the
previous earnings till the month before the current month.

MEANING OF PAY ROLL SYSTEM

Pay Roll system refers to a list of employees receiving wages or salaries

with the amount due to each and total sum of money to be paid out to
employees at a given time.

PAY ROLL DEPARTMENT

The Payment of payroll or wage sheet is work of payroll department. In

most of cases, it is usual to see sepal-ate payroll department function
under the control of cost accounting department, although in some case
the cost office itself may accomplish the work.

FUNCTION OF PAY ROLL DEPARTMENT

 To maintain art employee record for every worker who is

authorized for employment
 To calculate wages ordinary and overtime on the basis of
their working.
 To compute additions to wages.
 To compute authorized deductions for wages.
 To arrive at the net wages payable.
 To prepare departmental payroll.
 To prepare pay slips.
  To send necessary record to cash and cost accounting
department.

SALARY

MEANING OF SALARY.

Any remuneration paid by an employer to his employee in consideration

of his services is called salary. It includes monetary values of those
benefits and facilities provided by the employer which are taxable.

The K. S. R. T. C. followed government rules for giving the salaries of

their employees. It gives the salary according to the designation of the
employees.

THE TABLE SHOWS THE PRESENT SALARY STRUCTURE

OF THE EMPLOYEES OF TUMKUR DIVISION

S.L DESIGNATION NEW SCALE (as on 1-1-2016

NO
1 Helper’s 10000-12000

2 Helper. A 12000-14500

3 Conductor 18000-20500
4 Assistant artisan 20000-24000
5 Driver 18500-21000

6 Senior driver 40000-55000

7 Traffic controller 25000-27800

ALLOWANCES
Payment in cash made by the employer to his employees monthly, other
than salary is called allowances.
There are three types of allowance
 Taxable allowances.
 Allowances exempt up to specified limit
 Fully exempted allowances.
The following are the some of the important allowances:

DEARNESS ALLOWANCES.

This is a very common allowance in these days on account of high

prices. Sometimes additional DA is also given. It is included in the
income from salary and is taxable in full.

POLICIES AND PROCEDURE ON DA FIXATION.

DA IS Based on the all Indian consumer index. DA is changes once in a

3 month. DA also changes according to the basic salary of an employee.
The K.S.R.T.C. is followed government rules on fixation of DA. On 1-1-
2016 onwards this corporation gives 15% of DA all designation of
employees according to basic pay washing allowance

TABLE SHOWING THE DA STRUCTURE EMPLOYEES

SL. DESIGNATION BASIC PALY AMOUNT OF

NO DA
1 Helper. A 10000 1500
2 Helper’s 12000 1800
3 Conductor 18000 2775
4 Assistant artisan 20000 3000
5 Driver 18500 2775
6 Senior driver 40000 6000
7 Traffic controller 25000 3750

HOUSE RENT ALLOWANCE

An allowance granted to an assessed by his employer to meet

expenditure incurred on payment of residential accommodation occupied
by him is exempt from tax certain extent.

The K.S.R.T.C is given 12. % of H.R. A for all the designation of

employees according to their basic pay.

TABLE SHOWING THE H.R.A. OF EMPOLYEES.

SL.NO DESIGNATION BASIC PAY AMOUNT
1 Helper’s 10000 1250
2 Helper. A 12000 1500
3 Conductor 18000 2250
4 Assistant artisan 20000 2500
5 Driver 18500 2312
6 Senior driver 40000 5000
7 Traffic controller 25000 3125

WASHING ALLOWANCE@ KSRTC

Washing allowance is given any for the driver conductor mechanics

sweepers attendees traffic controller security guard at RS 200 per month.

TABLE SHOWING THE WASHING ALLOWANCE OF

EMPOLYEES AS ON 1-1-2016

SL.NO DESIGNATION AMOUNT

1 Driver 200 per month
2 Conductor 200 per month
3 Mechanics 200 per month
4 Sweepers 200per month
5 Attendees 200per month
6 Traffic controller 200 per month
7 Security guard 200 per month

EDUCATION ALLOWANCE

The education allowance is given only for professional education

TABLE SHOWING THE EDUCATION ALLOWANCE

SL .NO EDUCATION AMOUNT

1 Diploma 1500 per semester

2 Medical 200 per semester

3 Engineering 200 per semester

SHOE ALLOWANCES

The shoe allowances are given all employees once in a year.

TABLE SHOWING THE SHOE ALLOWANCE

SL.NO CATEGERIES AMOUNT

1 Male 700 per year

2 Female 700 per year

MECHANICAL ALLOWANCE.

The mechanical allowance is given only for the mechanics at Rs 120 per
month.

RAIN COAT ALLOWANCE.

The rain cost allowance is given all the employees once 4 years at Rs
950.

NIGHT HALT ALLOWANCE

The night halt allowance is only for the drivers and conductors.

TABLE SHOWING THE NIGHT HALT ALLOWANCE

SL.NO DESIGNATION AMOUNT

1 Driver 150 per night

2 Conductor 150 per night

SECURITY GUARD ALLOWANCE

SL.NO DESIGNATION AMOUNT

1 Divisional security inspector 400p.m
2 Assistant security inspector 350p.m
3 Watch and ward inspector 320p.m
4 Security hawaldar 280p.m
5 Security head guard 230p.m
6 Security guard 200p.m

DEPOT ALLOWANCE

SL.No DESIGNATION AMOUNT

1 Junior assistant 280 per month

2 Assistant 280 per month
3 Supervisor 280 per month
4 Store keeper 280 per month
5 Cashier 280 per month

TYPIST SPECIAL ALLOWANCE

SL.NO DESINGNATION AMOUNT

1 Typist 250 per month
2 Junior Typist 200 per month
3 Personal assistant 300 per month

RE-PAST ALLOWANCE
SL.NO DESIGNATION AMOUNT
1 Helper B 50 Per day
2 Security guard 50 Per day
3 Hawaladar 50 per day
4 Sweeper 50 per day

NIGHT OUT ALLOWANCE

Night out allowance is given only for the drivers and conductors

First night Rs. 50

Second night Rs. 70

Mumbai trip Rs. 150 per night

Interstate trip Rs. 120 per

SPORTS ALLOWANCES Sports allowance is given all the

designation of employees participates in state games Rs.500 per month
until they retire employees participates in national games Rs 1000 per
month until they retire

CHECKING INSPECTOR ALLOWANCE Checking inspector

allowance is given only for the checking inspector @ rupees 13 per day
 CHAPTER -2

Review of Literature and Research Design

MAJOR DUTIES OF HR

Ensurestimely and accurate preparation of all institution payroll

operation and works closely with the Human resources office to ensure
that payroll action are the conformance with employment and benefits
practice and accounting procedures.

 Oversees preparation of all the federal and state payroll tax reports,
including quarterly and year ending returns ; determents taxability
non –wage payment and services as in house contact for
technically tax compliance issues .Including tax liabilities of
foreign nationals.
 Interface routinely with human resources on employee benefits
issues (Deductions, Retirement payments, etc,) to ensure timely
and accurate processing.
 Handles federal and state agency audits and maintenance close
contact with ITI and other regulatory agencies to ensure that the
institutions has accurate information and is in completeness .
  Maintains all payroll records, report, computerisations and audit,
including periodically internal audit, including periodic internal
audit tests of labour utilization: work closely with internal and
external auditors to ensure compliance with relevant tax laws and
government regulations.
 Work closely with management information system on developing
payroll application that ensure internal control and facilitate the
implementation and maintenance of payroll and HR master files.

 Provide periodic analysis of payroll and disbursement records to

ensure that adjustment are in record with management criteria.

PAYROLL METHODOLOGY

 SAP – source is a software – Talent payroll service provider

which can take best of the
 Available software to suite client need
 We can use any payroll software strong methodical service
orientation.
 To believe sensitive activity like payroll service is more
important than the tool used.

Execution Objective
  To build methodical &services oriented approach in
execution of payroll as it is a sensitive activity and needs to
be executed,
 Timely & consistency
 Correctly to the last detail
 To give complete picture every month to management and
employees
 Supportive & predictably
 Methodical structured approach to payroll outsourcing
 To help us access, Analyse and to build solid execution
 Analyse stage – documenting the details gathered
 Transition stage – preparation
 Pilot stage – verification
 Production stage

Stage -1: Analysis

 Understand client business

 Alignment of out sourcing strategy with the corporate

strategy
 Assess requirement
 Review environment
 Confirm viability
  Identification of an out sourcing champion
 Establishment of clear timelines around the
 Outsourcing initiative

Stage – 2: Transition
 Team mobilization
 Training in tools and procedure if required
 Hand –over of responsibility to our team
 Establishing necessary set – up
Step – 3: Pilot
 Data collection and entry in the D/B
 One time data
 Company & employee
 Monthly data
 Data in between the months
 Data validation with client
 Verify per checklist ,if we have received the monthly
data in complete
 Enter the data in the salary processing software
 Data entry validation
 Verify if software has given consideration to all
exception.
Stage – 4: Execution
 Monthly
 Salaries slip to the employee with leave balance
& to date fig.
 Considerate report to the management
 Note to the bank for disbursement of salary

 Monthly tax deduction statement

 Monthly society contribution
 Quarterly tax return document to company and
to employee
 Salary certificate to the employee
 Attending to the call of the employee specific
issues

Payroll Back office scope of services

 Maintenance and updating of employee information sheet / salary

register

 Calculation and preparation of monthly salary sheets,

 Calculation and deduction of statutory deduction like provident
fund,
  Profession Tax, Income Tax etc, as and when they are applicable,
 Calculation of withholding tax, statutory and non statutory
deductions on salary,
 Monthly pay-slips to employees
 Quarterly IT report to employees
 TDS CERTIFICATES
 Issue Form 16 to all employees
 TDS RETURNS, filing of quarterly salary E-TDS returns

Why payroll software used in the organisation

Payroll system
Payroll statement
The study specifically seeks to answer the following problems in
manual payroll process:
 Speed in processing payroll tends to be slow,
 Prone to mathematical errors that could consume much time then it
should and could cause financial or legal trouble,
 Tallying of time cards is done manually,
 Time consumer in double checking the consistency of all the
report,
 Difficult and time consuming in keeping up-to-date in taxes and
other deductions,
  Storage of files is susceptible to be damaged as well as lost of data
significance of study,
 Speed in processing payroll will have a faster performance by
means of decreasing the manual input areas,
 Mathematical errors will be prevented by automatic computations
that the proposed system will provide and you may not have to
worry about having financial or legal trouble,
 The proposed system will record all data in all report at the same
time so you can make sure they are consisted and it also saves
time,
 Employers will never have to spend much time in keeping up to
date with taxes and deductions because the system will be designed
updated to such deductions,
 Storage of files will be safe and secured with “username and
password” and can easily be accessed,
Scope and Limitation
After several interviews and observations, the researchers have come to
identify how the payroll works, the aim of the research is to provide as
specific school, Hillcrest Baptist academy, a computerized payroll
system, the proposed system will guide the employer though all the
stages of the process,
The system can only do the following:
  Compute monthly net income, PAG-IBIG, withholding Tax and
other deductions

THE PROBLEM AND REVIEW OF RELATED LITERATURE

As computer technology changes at such fast phase, many businesses

sectors try to cope up by upgrading computer system constantly in order
to stay competitive, The multi- function ability of technology for its
advance system is also an important factor for a company to use
software, It makes efficient use of the advanced technology and has
ambition to discover more,
Computers have the great impact on the profession of accounting. With
the rapid growth of technology today, there is no doubt that computer
will become a common asset in all profession.

The program also allows the monthly payroll schedule to be calculated

accurately. Just by having all employees’ info like name, working hours,
wages etc.to enter in the database, therefore, payroll can be done with
the guide of the program; The system is good in for its specialty in the
fields of accounting. It is easy to use, effective and effective and
efficient in organizing and calculation the payroll,
In addition, this study aim to develop a reliable and manageable
computerized payroll system for a better manageable of a business, the
proposed computerized payroll system will give a big relief of the
employers as well.

HOW THE INPUT PROVIDED BY THE CLIENT

Story provided by the client was as follows:

“You are to design and implement a payroll system that should accept
employee hours worked, compute net pay and record all the payroll data
for subsequent processing, The system should prepare pay cheques and a
payroll ledger, and maintain data on a sequential payroll file, non-
statutory deduction such as union dues and pension plans to be made.
“The payroll data are employee number, employee name, pay rate, and
union member flag, The year-to-data total should contain earnings,
federal tax, pension plan, and union dues” To accomplish these tease
tasks, we had to meet with the client to find out exactly what the
program is Meant to do, here are the sub stories that we were able to get
from the client:
 The program accepts employee hours worked
 The program computes net pay
 The program record all the payroll data for subsequent processing
  The program should prepare pay cheques
 The program should prepare ledger
 The program should maintain data on a sequential payroll file

 Non-statutory deduction such as union dues and pension plans to

be made
 Year-to-data total should contain earnings, federal tax, pension
plan, and union dues
 Payroll data are employee number, employee name, pay rate, and
union member flag

Terminology Definition

This section gives a definition and explanation of some of the terms used
in the project

Employee Data: this is employee’s information in the company. It

consists of the employee identification number, employee name, pay
rate, pension plan flag, and union member flag.
Payroll Records: the payroll records are used to store each month’s
hours worked, and the rates for that month.
Rates: Rates consists of the percentage that would be deducted from the
gross pay depending on union membership status, pension plan, state
and federal tax. Each employee can have a unique
Payroll Ledger: this is a table that shows the calculated pay of
employees and the month in which they earned the pay. The ledger can
be filtered by name, identification number, year and month.
Hours Worked: this is the number of times that an employee work in a
month the hours worked is used to calculate the pay that an employee
will receive for that month.
Net Pay: the net pay is the final salary amount that would be given to
the employee after all the deductions are subtracted from the gross pay.
The deduction includes among others taxes, union member dues and
pension plan.
Gross Pay: the gross pay is the amount that the employee earns before
the deductions are subtracted.
Deductions: Deductions are made up of taxes, union membership dues,
pension plan. They are subtracted from the gross pay to give the net pay
which is the employee’s final pay for the month
Taxes: The taxes consist of the state dues and federal dues. A
percentage of the employee’s salary goes to state and country.
Union Membership Dues: This is meant for employee’s that are union
workers in the company. They get to pay a percentage for union dues.
An employee can be a union member and later change status to be a
non-union member.
Pension Plan: Employees that opted to use the pension plan of the
company get to pay a particular percentage of their pay in preparation
for their retirement.
Pay slip: These are similar to pay cheques. They allow the employee to
have his or her pay printed out on paper so that they can cash it.
Year-To-Date Total: The year –to-date total is the summation of all the
previous earnings till the month before the current month.

REVIEW OF TECHNOLOGY TEAM TO MEET CLIENTS

REQUIREMENTS:

The client knows how far organisation software is coming and knows
what to except at one particular time or the other, the software is build
exactly the way the client wants it to be built.

Project Deliverables
We met with our client on a few occasions to show our progress so far,
In the long run, showing the client part of the finished product in stages
helped, There were a few things he brought to our understanding and we
were able to change those things, If we had waited till we finished the
coding, we would have found it really difficult to correct the errors we
found in such a short time,
The graphical user interface was acceptable to the client at this stage
even though we could improve on it with title more time, From our
project deliverables, the client was able to bring to our understanding
that the employees should have different pay rates and that it would be
safe (for recode purposes) to calculate the employee’s year-
to-date total salary earnings, These observation were later incorporated
into the final deliverable,
Software development practices adopted in Talentpro,
 Extreme programming to build the software,
 The whole team approach in which the client was involved
throughout the software development,
 Simple designs which were as simple as the current functionality
allowed by the system, we first began with very simple design
which is incrementally improved,
 Continuous integration was also used where each code was
compiled run and tested before
Adding to the system after which the system must meet all the criteria
 The most important practice adopted was pair programming, the
technology team paired up with member of the payroll term and
each team met at various times to code. After each pair coded, they
 made sure they tested and compiled it, then added it to the main
system which they sent to the other group members,
 We also made sure that we coded according to coding standards,
the development codes were
Consistent and had the same style throughout,
Research is the process of systematic and in-depth study or search for
any particular topic, subject or area of investigation, backed by
collection, compilation, presentation of reverent details or date.
It is a careful search or inquire into any subject matter which is an end
ours to discover and find out valuable facts which would be useful for
further application or utilization research many in love a scientific study
and result in discovery or invention in which would and either scientific
development or decision marking. If may be concern with general
abstract, preconception subjects, these cannot be any, research which
does not increase knowledge or improve the scientific knowledge.

RESERARCH DESIGN

Introduction:

Research is the process of systematic and in-depth study or search for

any particular topic, subject or area of investigation, backed by
collection, compilation, presentation of reverent details or date.
It is a careful search or inquire into any subject matter which is an end
ours to discover and find out valuable facts which would be useful for
further application or utilization research many in love a scientific study
and result in discovery or invention in which would and either scientific
development or decision making. If may be concern with general
abstract, preconception subjects, these cannot be any, research which
does not increase knowledge or improve the scientific knowledge.

Research

According to Francis Rummel “Research is a careful inquiry or

examination to discover new information or relationships and to verify
existing Knowledge”.

Research Design:

Research design is a method and procedure for acquiring information

needed to solve the problem. A research design is nothing but a basic
plan that helps in data collection or analysis. It specifies the type
information to be collected at that source and data collected is relevant
to the objective to be achieved.

According to C. sell tic and others “A Research Design is the

arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in
Procedure”.
Research:

According to oxford dictionary research means. “A search for

investigation directed to discovery of some fact by careful consideration
or study of subject”.

Essential Features of good Research Design:

 It is a plan that should specify the objectives of studies and

hypothesis to be tested.
 It should be specify the methods should be adopted for gathering
and analyzing of data.
 A time schedule for the entire research, including speculations,
deadlines for specific phase of research.
 Personnel and administrative set-up.
 Yields maximum information.
 Minimizes bias and maximize reliability of data collected.
Steps in Research Design

 Formulation of the problem.

 Prepare a list of information needed.
 Design the data collection.
 Selecting a sample size.
 Determining the sample size.
 Conducting pilot study.
  Organizing the field work.
 Analyze the data and report the findings.
Title of the Study
“A study on payroll system in K.S.R.T.C. with special reference to
Tumkur Division-1”

Statement of the problem.

The payroll system is differing from one public sector to another public
sector. Hence I have selected K.S.R.T.C. to study the payroll system
followed by it.

Objectives of the study.

 To know the growth and development of K. S. R. T. C in
general.
 To study about payroll system.
 To identify the various components of payroll system
 To know the savings practices followed by the employees.
 To suggest remedial measures for major findings.
 To know the tax provisions applicable for savings.

Scope of the study

This study covers theoretical factors on payroll systematic @ K.S.R.T.C.

payroll system is a major factor in a financial department.
Methodology of Research

The sampling technique used to draw the required sample is “random

sampling survey.”

Sampling area-Tumkur division

Sample size – 150 respondents

Sample units –40 drivers + 40 conductors+ 35 mechanics in depot + 35

staff

Sources of Data.

Data for study consists of both primary and secondary data.

a) Primary data
Primary data consists of original information gathered for specific
purpose. This data is collected with the help of interview schedule
method by using questionnaire from target member interpretation can
also be done correctly by this method. This because the method is much
helpful in Factors such as obtaining the significant and answer to their
ability.

Data collection tools:

The following tools will be used for collecting primary data.

A. Questionnaire
 B. Interview
b) Secondary data.
The research started by examining the data like books: Journals news
papers also from related documents of income tax act.

Geographical area of the study.

This study will be confined at K.S.R.T.C. Tumkur division-1

Limitations of the study.

 The full project work preparation is restricted to three months only.

 The survey results cannot be generated to the whole employment
of K.S.R.T.C.
 The analysis the study was limited to information gathered from
the sample size
 The study is restricted to K.S.R.T.C. tumkur division only.
 Suggestions are based on limited data collected from the employ

CHAPTER SCHEME
Chaptar-1: introduction deal with meaning of salary, definition,
features, basis of charge on salary, forms, wages: types, payroll system
meaning payroll department, function of payroll department

Chaptar-2: introduction, steps in research design, total of study

Statement of the problem, Objectives of the study, scope of the study,
Methodology Research sources of the data, Geographical area of the
study, limitation of the study.

Chaptar-3 this chapter deals with company profile and industry profile

Chaptar-4 Analysis and interpretation of data

Chaptar-5 Summary of finding, suggestion and conclusion