Responsibilities of a Payroll Specialist:

 Check some of the major responsibilities of a Payroll Specialist provided below.

 Collecting important information such as working hours and days of the employee
 Preparing and processing the final payment
 Resolving the queries of the employees regarding the salary
 Coordinating with the senior management before finalizing the payment
 Calculating benefits, wages, commissions, tax deductions etc.

Eligibility to become Payroll Specialist:

 Check the minimum eligibility criteria for a career as a Payroll Specialist provided below.
 BA/ BSc in accounting/ business or any other relevant field
 At least 2-3 years of work experience in payroll
 Knowledge of payroll practices and basic accounting principles
 Hands-on experience with some software such as Pay force, Kronos and Microsoft Office

Apart from educational qualification, he should have a good understanding of Microsoft Excel. Some
additional skills are required for Payroll Specialists such as excellent communication abilities, time
management skills, strong organizational skills, problem-solving skills and computer skills. Those who
are looking for admission in any course such as B.sc in Business Management required for career as a
Payroll Specialist may fill the Common Admission Form.

Types of Job Roles Payroll Specialist:

You will be required to start your career as a Payroll Clerk before applying for a job as a Payroll
Specialist. After that, you will be working independently in preparing final payment report, verifying
employment verification forms and coordinating with the managers. Job roles of a Payroll Specialist will
depend on the experience and skills in computers and other accounting software. Some job profiles
available for Payroll Specialist are provided below.
 Payroll data analyst
Payroll clerk

Payroll Payroll
manager manager

Payroll Payroll
manager manager
Payroll administrator Payroll director

1. Income Tax formula for FY Financial Year (2019 – 2020) = (Basic Pay+ Allowances –
Deductions) * 12 – (IT Declarations + Standard Deduction)
2. Deductions are the sum of PF, ESI, and PT etc.
3. Deductions = (Provident Fund + Employee’s State Insurance + Professional Tax)
4. TDS is calculated on (Basic Pay + Allowances – Deductions) * 12 – (IT Declarations +
Standard Deduction)
5. For example professional tax of an employee is $ 400 per month and the provident fund
which they deposit in their account of company is $ 300 per month. Employees’ State
Insurance per month is $ 200.
6. The basic Pay of an employee is $ 2000 per month and 4% allowances are given by the
company to its employees.
7. So annual basic pay of an employee is $ 2000* 12 = $ 24,000
8. Allowances which are given by the company annually: 24,000* 4/100 = $ 960
9. So, total annual income of an employee is $ 24,000 + $ 960 = $ 24,960
10. Now the deductions:
11. Professional tax annually: $ 400 * 12 = $ 4800
12. Annual Provident fund: $ 300 * 12 = $ 3600
13. Employees’ state insurance: 200 * 12 = $ 2400
14. So, Total annual deductions are: $ 4800 + $ 3600 + $ 2400 = $ 10,800
15. Annual Net Income or payroll for an employee is:
16. $ 24,000 + $ 960 - $ 10,800
17. $ 24,960 - $ 10,800
18. $ 14,160 is the net income or net annual pay for employees.
19. Now TDS:
20. TDS is calculated on (Basic Pay + Allowances – Deductions) * 12 – (IT Declarations +
Standard Deduction)
21. TDS = $ 14, 160 * 12 – ( $ 630 + $ 240 )
22. $ 14,160 * 12 – ( $ 870)
23. $ 169,920 – 870
24. $ 169, 050
25. So, exact deduction from Tax deducted sources
26. 169,920/ 14,160