Please Print on People Letterhead

Please print on People™ letterhead

DesignationDate

Client Name

Address,

Address,

City, Country

PAYROLL MANAGEMENT SERVICES

Dear Mr./Ms. Last Name,

Further to our discussions regarding the subject, we are pleased to submit our proposal for provision of Payroll Management Services to Client Name. The following write up outlines the scope of work, methodology, payment mechanism and ensuing terms and conditions.

1. SCOPE OF WORK

The list of action items included in the Payroll Management – Gold Package selected by you during discussions is outlined below for the purpose of clarification:

1. Employee Personal Information Management
2. Leave Management
3. Expense Reimbursement & Travel Authorization Management
4. Salary Processing & Disbursement
5. Final Settlement & Disbursement
6. Statutory Payments Processing, Deposit & Record Management
7. Payroll Reports

Out of Scope: Gratuity, Pension or Provident fund management will be carried out by Client Name.

1. Employee Personal Information Management

The first item in the list of benefits is the availability of the staff personal information on the PeopleTM portal through the members’ area once the personal data has been captured by the PeopleTM payroll management system. Here not only the Client Name Managers will be able to view staff personal data through HR Admin portal but they will also be able to view and maintain personal information through employee portal. The idea is to provide a facility where managers can quickly access personal information without having to refer to the hard copies and enable the staff to update their respective personal information instantly without subjecting the HR department to the additional task of information updating.

1. Leave Management:

This facility entails provision of information to staff on leave entitlements and leaves balance and enables them to apply for leave online through PeopleTM employee portal. People™ Payroll Management will keep a record of such leaves and accordingly update the salary register based on approval and entitlement criteria provided by Client Name. PeopleTM will not be responsible for monitoring daily attendance and will rely on information provided by Client Name managers at respective locations to submit the attendance record for the purpose of preparing the monthly salary register.

1. Expense Reimbursement and Travel Authorization Management

PeopleTM Payroll Management includes a module for processing claims/reimbursements of incurred business expenses and travel authorizations. The employees of Client Name will be able apply for reimbursements by online submission of expense detail, as well as apply for business travel, by logging on to the PeopleTM employee portal.

The claims and reimbursements will be processed as per the grade-wise entitlements and limits provided to PeopleTMby Client Name.

1. Salary Processing Disbursement

Every month, the monthly staff turnover reports (new recruitments, resignations / terminations) received from Client Name, the monthly attendance and leave data will be processed - along with any salary or benefits revisions or amendments (arrears, increments, deductions) – to compile the salary payable to staff members.

The monthly payable salary information will be shared with Client Name HR for final approval before disbursement. Approval by Client Name will be followed by transfer of salary funds to PeopleTM for onward credit to employee accounts. All salaries processed will be uploaded to the PeopleTM employee portal in the form of salary slips so that individual employees can view salary calculations and personal salary record for past months.

1. Final Settlement & Disbursement

In case of resignation, Final Settlement will also be processed as per information received and disbursements will be made in coordination with Client Name HR.

1. Statutory Payments Processing, Deposit & Record Management

Simultaneous with the monthly salaries disbursement, People™ Payroll Management will undertake processing and depositing of statutory payments such as income tax, EOBI/Social Security and other applicable fees and taxes. Proof of deposit along with record thereof will be maintained and made available to Client Name Managers for quick review and referral through the PeopleTM HR portal.

People™ Payroll Management would also generate the year-end annual information as required by most regulatory authorities.

1. Payroll Reports

People™ Payroll Management enables clients to generate many useful reports that facilitate informed decision making. Clientswill be able to view reports such as:

•Employee Information

•Salary Register

•Invoice Register

•Employee Payment Details

•Employee Fund Transfer Details

•Income Tax Statements

•Statutory Payment Details

If needed, People™ can also generate reports on workforce management aspects such as leave trends, expense trends and staff turnover data, etc.

1. METHODOLOGY

The methodology for migration to People™ Payroll Management is an easy, straightforward process and involves following three steps:

Step 1: Information gathering and documentation

Step 2: System configuration, approval discretions and training

Step 3: Live testing and switch over

A dedicated Relationship Manager will coordinate the transition to provide support and address any issues.

1. SERVICE CHARGES & PAYMENT MECHANISM:

There are two types of charges applicable to Payroll Management Services, as outlined below:

Monthly Service Charges(please delete country name as per your proposal)

Note: Salary disbursement through EFT, CC or Pay Card cost will be billed as OOP expense, if any

Out of Pocket Expenses

Out of pocket expenses will include costs incurred in making presentations, holding training sessions, travel undertaken at the request of Client Name for the purpose of completing this assignment and other ancillary expenses. Out of pocket expenses will be billed at actual; however, a prior permission will be sought before undertaking any expense of such nature. Also any charges incurred by the bank to undertake Electronic Funds Transfer or issue cross cheques will be billed as Out of Pocket Expenses.

People™ will be able to absorb up to a 50% increase in volume in any given month. However, prior notice of 30 days for handling a volume change higher than 50% will be required to make appropriate arrangements internally to ensure smooth functioning.

Payment of salaries will be carried out through direct transfers from People™ bank accounts after receiving such funds from Client Name. Service charges and out of pocket expenses will be invoiced to Client Name separately on a monthly basis.

1. TERMS & CONDITIONS:

The term of assignment of payroll management will be for the duration of duration, beginning on a mutually agreed date; extendable to another term of one year on mutual agreement of both parties.

The ensuing terms and conditions and service levels are detailed in the Service Agreement and Service Level Agreement (SLA).

We hope that the above proposal will meet with your expectations and look forward to starting a value based relationship. Please feel free to revert if you have any questions.

Regards

People™ Representative Name

PPM Proposal – Client Abbreviation/ PeopleTMPage 1 of 5