Employee Perquisite Details - A summary of the activity

Through this activity, you can record, modify or delete the perquisite details of the employees.

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Ramco HRMS broadly classifies perquisites into three categories.

•  Rent free accommodation

•  Motor car

• Other perquisites

Recording perquisite details: This involves selecting a perquisite category; in other words, rent free accommodation, motor car or other perquisites. For each perquisite category, you require entering the details, such as

• Selecting the perquisite type. For example, for rent free accommodation category, the perquisite type can be rent free furnished accommodation, unfurnished accommodation, etc.

• The period for which the perquisite will be used.

• Specifying the actual expenditure and total cost incurred for providing the perquisite.

Reusing the existing perquisite details: You have the option of retrieving any previous tax year’s perquisite details, and reusing these details for the different employees in the current tax year.

Setting the Backdated trigger status: The functionality of Backdated trigger status is the same for the rent free accommodation and car perquisite allowances.

To comprehend the functionality of Backdated Trigger status, you can consider the “Rent Free Accommodation” perquisite allowance. The “Rent Free Accommodation” perquisite allowance facility could be availed by the employee as “HRA”, “Company Leased Accommodation”, “Company Owned Accommodation” or “MHRA”. The Backdated Trigger enables to correct any computation for any of the process periods that have already been authorized.

For example, consider an employee who is paid HRA by the company for the month of January. After the January month payroll is authorized, the company gets information that in the month of January the employee was staying in the Company Leased Accommodation. Inorder to rectify the error you can change the Accommodation type from HRA to Company Leased Accommodation type and set the Backdated Trigger value to “Yes” for the month of January. When you process the February month payroll, the HRA amount given to the employee for the month of January is deducted from the February month salary.

Modifying/deleting perquisite details: You can modify or delete perquisite details that have been authorized.

Auto Authorization of perquisite details: Upon save, the system authorizes the perquisite allowances. You can edit the perquisite allowances that have been authorized.

Getting familiar with the pages inside

Go to page…	…to carry out task
Employee Perquisite Details	Recording employee perquisite details
Rent Free Accommodation	Recording rent free accommodation details
Motor Car	Recording motor car details
Other Perquisites	Recording other perquisites
Help on Employee	Getting help on employee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6      Hyperlinked topics below

Prerequisites

The prerequisite types must be defined in the “Prerequisites Setup” activity.

The employee must be mapped to “Map Payset to Employee” activity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What you can do in this activity

Recording perquisite details for an employee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Record perquisite details for an employee

You can record the perquisite details for an  employee or group of employees.

• Use the "Employee Perquisite Details" page to select a perquisite type for which the details must be recorded

• Use the "Rent Free Accommodation" page to record accommodation details provided by the employer

• Use the "Motor Car" page to record the motor car details provided by the employer.

• Use the "Other Perquisite Details" page to record the details of perquisite provided by the employer other than the accommodation or motor car.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perquisites

Perquisites are defined as the non-monetary benefits provided by the company to the employees in addition to the regular salary.

According to the Income Tax Act, all monetary and non-monetary benefits received by the employee must be included in the salary income for tax computations. Since perquisites are non-monetary benefits, it becomes necessary to assess the value and include in the salary to ensure that it does not exceed the taxable limit. The method of evaluating a perquisite is specified in the “Finance Act”. You can specify the methods in the “Perquisites Setup” component to evaluate the value of the perquisites for each employee in the company.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Perquisites

All the perquisites other than rent free accommodation and motor car are grouped under the “Other Perquisites”  category.