Payroll
Payroll cycle
The payroll cycle is the recurring sequence of collecting attendance and inputs, computing pay, approving, paying and filing for one pay period.
A monthly cycle typically locks attendance around the 25th, applies leave and loss of pay, adds arrears and reimbursements, computes statutory deductions, takes sign-off, generates the bank file and payslips, and then files PF, ESI, TDS and PT returns.
The cut-off date and the pay date define the cycle; anything after cut-off becomes next month's arrears.
In Indian payroll
Most Indian companies pay on the last working day or by the 7th, with statutory payments due on the 7th and 15th of the following month. The cycle therefore never really closes until the returns are filed.
What is Payroll cycle?
The payroll cycle is the recurring sequence of collecting attendance and inputs, computing pay, approving, paying and filing for one pay period.
Why does Payroll cycle matter in Indian payroll?
Most Indian companies pay on the last working day or by the 7th, with statutory payments due on the 7th and 15th of the following month. The cycle therefore never really closes until the returns are filed.
Related terms
In Kuzhu
The Payroll module in Kuzhu is where Payroll cycle is handled, on the same employee record as everything else.
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