COURSE NAME: BUSINESS ANALYTICS

SKILL OFFERING ID: 2281

PROJECT TITLE: PAYROLL MANAGEMENT - EXCEL
PROJECT SUBMITTED TO: NSE ACADEMY
YEAR: 2023
DEPARTMENT: B.COM - GENERAL
SEMESTER: VI - SEM
GROUP NUMBER: 009
MEMBERS OF THE GROUP:
 VARSHENI.H
 VIJAYAPRATHA E M
 VISHALI RAJANP D
 SWETHA R
 SULAIHA BEEVI A
 SUGASHINI M
 SUBHASREE A

GUIDED BY: DR. MARY GEETHAM R.

. Email: marygeethamr@annaadarsh.edu.in
Phone: 9003266598
CLASS IN CHARGE: DR. S. ANITHA
Email: anithasuresh@annaadrash.edu.in
Phone: 9962253179

SPOC NAME: DR.V MEENAKUMARI

Email: viceprincipalshift2@annaadrash.edu.in
Phone: 94444266598

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 CONTENTS
INTRODUCTION:..................................................................................................................................3
OBJECTIVES:.........................................................................................................................................4
ANALYSIS:..............................................................................................................................................5
GATHER INFORMATION FOR PAYROLL:.....................................................................................................................5
CALCULATION OF GROSS PAY AND NET PAY.............................................................................................................6
TESTING:................................................................................................................................................................................ 8

FINDINGS:..........................................................................................................................................10
CONCLUSION:...................................................................................................................................11

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INTRODUCTION:

PAYROLL is a method to streamline and manage employee payments.It

starts with the development of a list of paid employees and ends with the
recording of those expenses.

The time between two salary disbursements is defined as a payroll cycle.

Salaries might be paid weekly, quarterly, or monthly, depending on the
needs of the business. In India, it’s typically processed once a month.

THE PAYROLL MANAGEMENT SYSTEM is a set of processes that

helps to streamline salaries, bonuses, deductions, taxes, and other
necessary aspects of the net pay of all the employees in your
organization.

Payroll System assists firms in reducing the number of people who

manually maintain attendance, salary, working hours, and income taxes,
among other things. Frequent repetition of payroll activities might lead
to boredom, which can lead to an error. As a result, it is always a good
idea to improve the process so that reliable data is available.

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OBJECTIVES:

 The primary objective of a payroll system is to ensure that

employees are paid accurately and on time for their work.

 The payroll system should ensure that all legal and tax
requirements related to payroll processing are met, such as
deductions for taxes, social security contributions, and other
government-mandated payments.

 A payroll system can help improve organizational efficiency by

reducing the time and resources required to process payroll.

 The payroll system should be designed to reduce the costs

associated with payroll processing, such as the time and resources
required to process payroll manually.

 An effective payroll system should provide employees with self-

service options, such as online access to their pay stubs, tax
information, and other employment-related information, reducing
the workload on HR staff and improving employee satisfaction.

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ANALYSIS:

GATHER INFORMATION FOR PAYROLL:

The primary function of any payroll management is to gather basic

information of the employees of the organisation. Some of the
information includes,

1. Basic employee details like Employee name, Position

2. Date of Joining
3. Work Hours
4. Overtime Hours
5. Other Deductions, Tax etc.

Using the above details, The HR personnel or the excel reporting

personnel can create an employee ID number (EIN),Schedule the payroll
process (monthly, weekly)., to track employee working hours, bank
details of your employees, and other details as required.

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CALCULATION OF GROSS PAY AND NET PAY:
The total monetary compensation that an employee receives during a
pay period is known as gross salary. Gross compensation includes
overtime pay, tips, commissions, and bonuses. It excludes non-cash
benefits like health insurance. With the required information, we can
begin calculating the pay checks.
Gross pay is determined by multiplying the number of hours worked by
the pay rate. Can also include any additional income earned such as
overtime and bonus.
Net pay is an employee’s earnings after all deductions are taken out.
Net monthly pay is the actual amount an employee earns on a month-on-
month basis, after the employer has made all deductions from the gross
income. Here is a formula to use to figure out your net pay:
Net Pay = Gross Pay – Taxes and Deductions

The tax rates are determined by the government and are based on
income slabs. The income tax calculation is done based on the following
formula: Taxable Income = Gross Salary - Deductions;
Income Tax = (Taxable Income x Applicable Tax Rate) - Tax Rebate.

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 Computation of Gross pay, Income Tax using Excel formula

Computation of Net Pay using Excel formula

Final output after adding up total of gross pay, income tax and net pay.

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TESTING:

The manual payroll processing for each employee was repeated by

dragging each cell downwards. Furthermore, keep verifying each value
in each component. Finally, format the cells and sum all values at the
bottom of the spreadsheet.

After completing all the above activities, we tested the system to

ensure that it was functioning as expected. We used test data to
validate the calculations and ensure that the output reports were
accurate.

The file was password protected to protect the work, to prevent someone
from opening a workbook without a password, granting Read-Only
access to a workbook, or even just protecting a worksheet so you don’t
inadvertently delete any formulas.

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The worksheet is now protected & this is the final output of payroll.

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FINDINGS:

Excel as software may be used for far too many things to enumerate. As
a result, it can assist organisations right from the start of the monthly
payroll tab.
It is used to store and manage personnel information. Furthermore, this
information might be kept alphabetically, by certain dates, or in other
ways.
This gives you a lot of flexibility in terms of how you enter, organise,
and view data. Because Excel allows you to easily handle data, you can
add, remove, and edit information whenever you choose.
This is becoming an increasingly important benefit to avoid errors
while recording payroll information.
Excel can convert any data into charts, diagrams, or graphs. This is
ideal for presentations and simple comprehension of complex payroll
information.
Payroll sheet in Excel, which comes in handy because data
manipulation is a breeze with this programme. Formulas can also be
utilised in spreadsheet inputs. This makes it simple to put numbers into
particular spots on the spreadsheet itself.
Excel will also complete the necessary computations automatically. As
a result, you will make little attempt to acquire pay check outcomes.
So you’re not only saving a lot of your essential company time, but
you’re also minimising the amount of work you have to do for the
applicable payroll period chore .

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CONCLUSION:

Excel is a great tool for payroll management as it is easy to use and

versatile. Excel allows you to easily handle data, you can add, remove,
and edit information whenever you choose. This is becoming an
increasingly important benefit to avoid errors while recording payroll
information. Its simple layout also allows for visual representations of
the payroll data, considering payroll performance over time can provide
more accurate yearly forecasts, which then helps to manage budgets
and cash flow.

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