Internship report – Pride Technologies, Chennai. Page 1 of 28 THIAGARAJAR SCHOOL OF MANAGEMENT MADURAI. “A Study on Payroll and Allied Accounting Activities in PRIDE TECHNOLOGIES, Chennai.” GANESHKUMAR. S A9410213 II MBA, Thiagarajar School of Management Faculty guide: Prof. Mr.R.M. Somasundaram, TSM, Madurai. Date of submission: 02/07/2010
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Internship report – Pride Technologies, Chennai.
Page 1 of 28
THIAGARAJAR SCHOOL OF MANAGEMENT
MADURAI.
“A Study on Payroll and Allied Accounting Activities in
PRIDE TECHNOLOGIES, Chennai.”
GANESHKUMAR. S
A9410213
II MBA, Thiagarajar School of Management
Faculty guide: Prof. Mr.R.M. Somasundaram,
TSM, Madurai.
Date of submission: 02/07/2010
Internship report – Pride Technologies, Chennai.
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Internship report – Pride Technologies, Chennai.
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ACKNOWLEDGEMENT
I take this opportunity to thank Mr. T.V. Karthick, Mrs. Sudha Prakash and Mr. L.S.
Kumar of Pride Technologies Consulting, Chennai, who guided me predominantly in
accomplishment of this endeavor.
I also thank Mr. Mattapalli Nagaraju (the principal), Mrs. Selvalakshmi (coordinator
MBA), Mrs. Vidya Suresh (internship coordinator) and my faculty guide Mr. Somasundaram and
the panel members who facilitated me during the course time.
I bow before the omnipotent and the omnipresent, who made all the above possible.
Internship report – Pride Technologies, Chennai.
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RESUME OF THE INTERN
Name: Ganeshkumar.S
Date of Birth: 02/04/1989
Educational Qualification:
Pursuing MBA programme in Thiagarajar School of Management, Madurai.
CGPA 6.38 as per I semester.
Pursuing PG Diploma in Financial Market Practice (PGDFMP) in IGNOU
Passed B.Com., in The American College, Madurai with 80.2%
Passed Higher Secondary Examination in SBOA, Madurai with 95%
Passed Matriculation Examination in SBOA, Madurai with 83%
Internship report – Pride Technologies, Chennai.
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EXECUTIVE SUMMARY
Pride Technologies Consulting India (P) Ltd., Chennai, deals with various businesses, of
which the sole purpose of intern deals mainly in obtaining a basic knowledge as well as exposure
to corporate finance and accounting through “A study on Payroll and Allied Accounting
Activities”
The methodology of knowledge enrichment process involved preparation of statements
such as:
Preparing Payroll Tax Reconciliation Statement for client companies of Pride
Technologies, Chennai. (Dec ‟09 to May ‟10)
Expense Analysis Report of major clients enabling decision making at management level
The nature of the Internship was practically observing the study oriented business
processes and activities by working as a full time employee from 25th
May ‟10 to 25th
June ‟10.
The observations during the course period helped in gaining a basic idea about US based
companies and their accounting activities, especially payroll systems. Brief awareness about US
tax rates, voluntary and statutory deductions in employee compensation ensures the host and the
recipient, a generalized exposure to minor areas of foreign accounting practices.
Further study in this field would lead to a detailed analysis in US accounting practices
especially payroll, US taxation, analysis of cause and effect of changing tax rates and
compensations, employee tax planning and economic status etc., which demands an in-depth
educational backup as well.
Internship report – Pride Technologies, Chennai.
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TABLE OF CONTENTS
1. Business framework 11
2. Understanding of overall business model 15
Theory - practice reflection (summary of observations)
3. Inference from Information Systems in Business environment 17
4. Need for Payroll reconciliation and summary of observations 18
5. About FUTA, SUTA and FPT 19
6. E-Peachtree and accounting methodologies 23
7. Observations from financial statement 24
8. Conclusion 26
9. Reference 27
10. Annexure I 28
Internship report – Pride Technologies, Chennai.
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LIST OF TABLES
1. Computation of gross and net pay in payroll tax reconciliation 17
2. Prevailing SUTA rates of different states 19
3. Observations from financial statements 22
Internship report – Pride Technologies, Chennai.
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LIST OF CHARTS
1. Business working model 12
2. Expense report analysis procedure 12
3. Business model of „Operations team‟ 13
4. Payroll process flow chart 14
5. Business flow of Pride BPO 15
6. Work flow in Staffing solutions of Pride Technologies 16
7. Information Systems flow in the business – interpretation 17
8. Working page of E-Peachtree accounting software 22
9. Work sample of „Expense report analysis‟ (Annexure 1) 27
Internship report – Pride Technologies, Chennai.
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APPENDIX
1. Expense report analysis – preparing a abridged summary of expenses of various clients
for a review of a CEO and other strategic level officials in a graphical presentation.
2. E-Peachtree – an Online accounting software used by Pride Technologies.
3. W 2 forms – wage and tax statements in current period reconciliation (reconciliation done
after every payroll i.e. every month).
4. PGF – Pride Global Finance (sister concern of Pride Technologies)
5. Timesheets – a record containing weekly work timings and other details of employees
6. Pride internals – it is a dialect in the company. It means handling the internal accounts i.e.
the accounts of Pride Technologies, other than its client companies.
7. FUTA – Federal Unemployment Tax. It is a tax levied by the federal government for the
benefit of the unemployed. The rules pertaining to it are governed by the United States
Department of Labor.
8. SUTA – State Unemployment Tax. It is a tax as similar to FUTA, the major difference is
the governing authority is the respective state in which the employees works. The SUTA
rates differ from state to state depending upon the regulations of the state governments.
9. FPT – Federal Payroll Tax. It is a type of income tax imposed by the government upon
the earnings of the employees.
10. Payroll tax reconciliation – it is a statement that ensures, wage and tax records are
accurate and aid in making sure that these are filed error free and on time.
Internship report – Pride Technologies, Chennai.
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COMPANY PROFILE
Mission statement:
“To be the partner of choice to our clients leveraging talent and resources from around
the world”
Pride Technologies, LLC is a leading information technology and business process
solutions firm that offers highly customized client-centric, cost-effective IT and business process
solutions. Founded by Leo Russell in 1983 and Headquartered in New York, it offers a broad
geographic reach with offices throughout the U.S., India and Brazil. It serves Fortune 1000
clients in the financial services, retail, healthcare, and insurance industries offering contingent
Staff Augmentation of IT professionals, Vendor Management, IT Hardware Procurement
Services and Business Processing Outsourcing.
Over the next 10 years, it became one of the largest minority-owned IT providers in the
country with 25 branches and over 1,000 people nationwide. In 1999, Pride launched an
advanced IT solutions practice, which encompassed sophisticated project management and
contract CIO assignments.
The current strategic level executives are;
Mr. Leo Russell, CEO and President
Tim Bradley, MD, is responsible for domestic and international recruitment operation
and internal business development for financial services
Michael B. Krieger, MD, is responsible for business process refinement and performance
consulting
Chris Philpott MD, handles Midwest sales and client engagement activities.
Internship report – Pride Technologies, Chennai.
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BUSINESS FRAMEWORK
(The work team in which the intern was engaged)
As the company involves diverse businesses, the area of study is limited to payroll and
other minor areas of accounting only. The business framework of that particular team, in which
the intern was engaged, involves:
Preparation of Payroll statements, Invoicing, financial statements for client companies
that outsource their accounting activities
Providing BPO and technology related solutions
Hiring on contract basis and performing Agency operations for recruitment to other
companies on salary and hourly basis. (The dialect for such function is ‘Operations’
team).
Preparation of financial statements and accounting for Pride internals i.e. accounts of all
branches of Pride Technologies LLC.
The major clients of Pride Technologies (the team in which the intern was engaged);
Pride Technologies (all branches in US)
Morgan Stanley
JP Morgan Chase
Adecco & Ann Taylor ., Inc.,
Pride HealthCare
Goldman Sachets
Russell Tobin, etc.,
Internship report – Pride Technologies, Chennai.
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Business flow chart – working model: (Chart 1)
Marketing department gets the business from various companies, called clients
Client companies outsource their accounting activities especially payroll, invoicing, etc.,
The work team gets the weekly detais of employees from the interlinked websites and
softwares, as updated by their clients
Team members in Pride Technologies, process the requested query of their clients
(reviewed by executives, in charge)
Sent back to respective client, the necessary work