Frequently asked Salary Questions & Salary Sheet templates in Excel
What are payroll expenses ?
Payroll Expenses include salaries, wages, bonuses, commissions, EFB, PF, EPS, company contributions such as a company-paid health plan, and the company-paid portion of taxes.
An employer pays the payroll expenses to its employees in the form of salary/wage for their services/work and associated expenses such as employee benefits and state and federal payroll taxes.
What is Gross Salary?
Gross Salary is the salary amount including all benefits and allowances before any kind of deductions. In simple terms, Gross Salary is the total of all the components of your monthly payout before any kind of tax deductions. Gross Salary = Basic Salary + Allowances + Benefits. For more information on components of Gross Salary click here.
What is Net Pay or Take Home Salary?
The net pay or the take-home pay is the amount of salary/wages of an employee that remains after all deductions(taxes, health insurance, benefits, etc.) have been subtracted. In simple terms, Net pay is the amount an employee receives after all taxes/deductions during a particular pay period.
How To Calculate Overtime?
Overtime Pay means the amount compensated for hours or days worked more than the maximum limit mentioned in your contract or set by federal or provincial law. Click here to get the formula for calculating Overtime.
How much percentage of CTC is the Basic Salary?
Basic salary is usually 40% — 50% of CTC.
How much percentage of Basic Salary is Dearness Allowance(DA)?
Dearness Allowance is usually 5% to 10% of Basic Salary.
On which amount PF [Provident Fund] deduction is calculated?
PF [Provident fund] is calculated on Basic Salary.
