S1 E3: Foundation
“Pay salaries of all employees by the 31st of every month. That’s it.”
Neel thought that would be easy. When Neel asked Sid about the payroll department, he got to know that there was no payroll department as such. Neel was on his own. Neel got his first experience of the start-up experience. He consoled himself and perceived this obstacle as a challenge.
Neel decided to stay back at Starbucks and build the payroll software on his own. Neel is very good at Microsoft office and he knew the ABC of payroll.
A. Add all the payable salary components to calculate Total payments.
B. Bind together all the deduction components to calculate Total Deductions.
C. Calculate Net Payment which is Total Payment minus Total Deduction.
Neel created an excel file. He included the following under total payments:
1. Basic Salary and Allowances
2. Ad-hoc Payments
3. Reimbursements
Deduction list was a little longer. Total Deductions included the following:
1. Provident Fund contribution
2. ESIC contribution
3. Labour Welfare Fund contribution
4. Professional Tax
5. Income Tax
Neel prepared a salary slip format in Microsoft word and mail merged it with Excel.
That is when his phone rang. It was his ex-Boss Bala. Bala asked him about his new job. Neel told him that he plans to join the office from Monday. He briefed Bala about his meeting with his Managing Director Sid. Neel said that Sid came to meet him on a Saturday. They met at a Starbucks near his house, feeling that it’s very cool.
Neel told Bala about his excel based HR software. Bala laughed for a while.
Neel was confused.
Bala said that HR is not about soft-ware, it is about soft-skills. But all soft things need a firm foundation. Neel should first check whether his company has required statutory registrations.
Bottom Line: All soft things need a firm foundation.
Read what happened before in S1E2
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