Payroll Manager

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Q.1 What is the upper limit of a fair pay?
Ability of the industry to pay
Q.2 Which factor influences fair pay?
Here are some factor that influences fair pay.
1. Prevailing rates of wages in the same occupation
2. Prevailing rates of wages in the same region or neighboring areas
3. Employers ability to pay
Q.3 What is an advantage of time rate system?
Here are some advantages of time rate system.
1. Convenient in modern factory system
2. Support from trade unions
3. Avoids quarrels among workers
Q.4 What is an advantage of piece rate system?
Fair to employer and employees
Q.5 What did the subsistence theory illustrates?
Any increase in the wage rate above the subsistence level would induce an increase in the birth rate and therefore in the supply of labor.
Q.6 Which wage theory is also called as iron law of wages?
Subsistence theory
Q.7 What does Marginal-productivity theory of wages focuses upon?
It focuses on net addition or net subtraction made to the value of the total produce of a firm.
Q.8 What is the maximum bonus as specified in the Payment of Bonus Act, 1965?
20% of the salary or wages
Q.9 What is the first step of job evaluation?
The first step is Preparation of JDs
Q.10 What do you understand by payroll management?
It consists of maintain records for, and controlling of basic pay, eligible allowances, increments, gross emoluments and deductions for Income tax, Provident fund, ESI, other recoveries to be made from each employee, including the maintenance of attendance and leave records.
It also ensures proper compliance of applicable legal requirements under P.F Act, ESI Act, Income tax Act, etc., to avoid facing penal consequences.
In that the management of pay roll ensures correct deductions made in pay bills of employees and timely remittance to Government and other authorities.
Q.11 What is payroll accounting?
Calculations of employees salaries and tax deductions are all involved in the Payroll accounting. The activities such as preparation of tax returns, maintaining the payroll records, etc., are also undertaken this.
Q.12 Please list the major modules of payroll management system?
Major Modules of Payroll Management System are:
Employee Profile
Leave Management System
Time Management System
Payroll Management System
Employee Transfer, Promotions & Increments
HRD Procedures
Income Tax Management (TDS)
Reports like the E.S.I.C & Provident Fund Statements and Challan, Government Forms, etc.
Q.13 What do you understand from the word payroll?
As far as the payroll management is concerned it is the detailed document containing the details of the salaries, wages, bonuses and deduction as well.
Q.14 What is a payroll card?
This Payroll Card is more like a card i.e. a plastic card which lets the employee access his or her pay through an ATM. It's more convenient when compared to the check casher. Although if you will use the payroll cards more than once at some ATM then you will be charged extra money. Though as the time passes by then you will definitely find this method to become more common and cheaper as well.
Q.15 What do you about the payroll frequency?
There is no fixed answer to this question as the regularity of the intervals varies from Organization to organization. Although, the HR department will let you know about it at the time of selection. While, to the maximum it will not be late than monthly payment in most of the companies.
Q.16 What do you mean by vouching?
It is a process of checking the authentication of the voucher maintained by the management with the respective supporting document.
Q.17 What monthly reports do the payroll provides to the department of accounts. what reports are generate at end of the month, qtr & year end in payroll dept?
When preparing the payroll every month the accounts dept should be provided with the information such as status of the employee as if he is a permanent or on contract or in probation attendance and if there are any bonuses to be paid to the employee.
Q.18 How would you define the whole process of payroll?
Payroll means processing a salary for salaried employee. There should be relation of "contract of service".
Q.19 Can you state the benefits achieved by computerized payroll system?
While Processing the payroll through payroll packages/any other calculated excel sheets we will get the appropriate data of salary payout/income tax payable & deductable values/statutory deductions particulars/Professional Tax deductable & payable values.
Rounded off values with proper/appropriate format for filing IT & Statutory & PT will be generated through computerized payroll system.
Q.20 How can scope of internal audit help you?
It's an independent appraisal function entrenched by the management of an organization for the review of its internal control system as a service to the organization.
Q.21 In an organization what are the general deductions made while processing the payroll for an employee?
General Deductions like Income Tax, P.F, ESI, Professional Tax etc., are made.
Q.22 What is exemption limit of gratuity?
10 lac, is the exemption limit of the gratuity.
Q.23 Define the routine steps part of a basic payroll processing protocol?
Payroll a list with names of all employees of a company along with their payable wage amounts. It includes filling up of W-4 forms by all employees, calculating applicable deductions, making deposits, creating a payroll records system, and determining the suitable payment methods.
Q.24 What is involved in the work of a clerk?
The role of the Payroll managers is compiling the payroll data, verify time and attendance and process periodic transfers of pays to different accounts.
Q.25 What are the 3 must have skills in a payroll clerk?
Well, Skills like
Analytical skills
Good command on mathematics and attention to detail
are the 3 must haves for any person playing payroll officer.
Q.26 Is accuracy important for someone handling payroll activities?
If we analyze there are so many calculations one has to make while processing the Payroll, so, even the slightest of inaccuracy can mess up an entire payroll system.
Thus, accuracy is very much important because of the amount of money involved. If payroll personnel do not pay attention to what money is going where, all accounting procedures go erratic.
Q.27 Brief the computerized payroll systems.
It includes complete employee information including loans, reimbursements, income tax management, pay structures and salary slip generation.
Since everything now is computerized. So, it is easy to handle calculations and manage printing activities.
Q.28 How different is a payslip from a pay check?
Payslip is a slip that contains all details of the employees like total wages, deduction details, tax cuttings and the like. While on the other hand a pay check is a certification that the employee has earned a certain amount and can cash it form the bank.
Q.29 List few factors which influence wages
There are many factors which influence wages and salary, as: The company's ability to pay, supply and demand of labour, the cost of living and job requirements.
Q.30 What is included under fringe benefits for an employee?
Fringe benefits for an employee are monetary benefits and include: Provident fund, Gratuity, Medical care, Health and Group insurance, subsidized canteen facilities and Recreational facilities.
Q.31 What are perquisites for an employee?
The perquisites for an employee are special benefits offered to executives for retaining them and usually include: Company car, Club membership, paid holidays, and furnished house or accommodation and Stock option schemes.
Q.32 Describe Non-monetary benefits
Non-monetary benefits are benefits which provide psychological satisfaction to employees and usually include: recognition of merit through certificate, offering challenging job responsibilities, Promoting growth prospects, Comfortable working conditions and Job sharing and flexi-time.
Q.33 What is Internal Equity under job analysis for payroll?
The internal equity is a method for payroll determination involving job analysis by basing the compensation strategies on the organizational hierarchy and it uses job ranking, job classification, level of management, level of status and factor comparison.
Q.34 Describe External Equity under job analysis for payroll
The external equity is a method involving job analysis for payroll and in which market pricing analysis is performed. The compensation strategies are influenced by the competitors or industry standards.
Q.35 How will you perform job evaluation for determining payroll for a post?
Job evaluation for payroll involves, having clearly defined and identifiable jobs which are evaluated as per agreed job evaluation scheme and gaining understanding of the job. It is the objective evaluation of the job.
Q.36 Differentiate amongst job analysis and evaluation.
Job analysis focuses on determining job‘s worth by data collection about the job and is the first stage of job evaluation. Job evaluation is a broader concept involving job analysis as it is the basis for a balanced wage structure by following the job analysis data and measure the value of job description to have a balanced wage structure.
Q.37 What is UAN in payroll for India?
UAN expands to Universal Account Number and is a is a single ID for employee enrolled in EPF Account so as link multiple Member Ids allotted by different companies in their career. Employee can view details of his/her all EPF Accounts.
Q.38 What are the EPF forms a company in India submits or prepares?
There are many EPF forms for a company and usually includes: EPF Challan (before 15th of every month ), Form 5 (for new employees joined that month), Form 10 (employees leaving that month) and Form 12A (monthly return form).
Q.39 What are the documents usually needed for registering under the ESI scheme in India?
Many documents are needed for ESI scheme registration and include: Registration certificate (under Shops and Establishment Act / Factories Act), Certificate of registration (MOA / partnership deed), list of employees with their monthly compensation, the bank statements, PAN card and address proof of the business and list of directors and shareholders of the company
Q.40 What factors influence competency based compensation?
There are various factors which influence competency based compensation and are: Complexity of Work as resources needed difficulty in doing the job, the breadth and variety of the employee's assignments and impact n the company.
Q.41 What does BARS rates for a candidate in interview?
BARS rates performance of the candidate.
Q.42 What will be of use in assessing a, interview candidate’s soft skills?
Various interactions with the candidate help assess their soft skills and include: conversations, reference checks and details in resume.
Q.43 What assessment type will measure a variety of mental abilities, such as verbal and mathematical ability of a candidate appearing for interview?
Cognitive Ability Tests will assess mental abilities of the candidate.
Q.44 Which online service is used to conduct live video interview?
Skype, Google Meet, Zoom or Microsoft Teams can be used for conducting live video interview
Q.45 How will you manage conflict amongst employees over compensation in the company?
Conflicts regarding compensation in a company need to be analyzed for its root cause and meeting with conflicting party or individual needs to be taken based on facts and figures for resolution. Depending upon their concerns, future compensation can be negotiated and clarified. Clear communication to employees regarding compensation, perquisites, and benefits should be developed by sending details on joining or promotion of the employee.
Q.46 What are Payroll source documents?
Payroll source documents refer to those documents that gives all the details required for the generation of the salary of an employee. It includes, Time sheets, Job sheets, Time recorders, Payroll registers and Pay-in-slip (pay slip).
Q.47 How do you avoid Payroll errors?
In order to avoid Payroll errors, I try following things - 1. We must ensure that all employees details are correct 2. We must track leave start and end dates. calculate at the end of employment for holidays accrued 3. We must review reporting process- for instance filling up the annual reconciliation form 4. We must be updated with changes and new rule in payroll tax rules 5. We should ignore payroll requirement deadlines- for instance paying withholding, payment summaries to the employee, etc. 6. We must ensure the correct employer premiums are taken out if insurance is covered.
Q.48 What is CTC?
CTC refers to Cost to Company. CTC includes all types of costs related to an employment contract and covers all compulsory deductibles like deductions for provident fund, medical insurance, etc. All these deductions form a part of the compensation structure, as you do not get them as a part of the in-hand salary.
Q.49 What strategy do you used to deal with the employees who do not report time records to the staff?
This question helps the interviewer to assist in knowing the abilities of a person in handling the strict and serious situations and the time-dependent problems performing strict follow-up duties.
Q.50 What all is required to remunerate a new employee?
In order to remunerate a new employee following is required, 1. Filling employee Information form, bank confirmation slip and get your employee to complete a tax form. 2. Sending all forms to Payroll department at least three working days before the employee’s first timesheet is due to be sent for payment.
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