Payroll
Set up payroll components and structures before running payroll. The sequence matters: Components → Tax Slabs → Structure → Assignment → Payroll Entry.
1. Add Salary Component
Go to: HR → Payroll → Salary Component
Salary components are the individual building blocks of an employee’s salary — earnings like basic salary, house rent allowance, medical allowance, and deductions like provident fund or income tax.
Open Salary Component Form
Navigate to HR → Payroll → Salary Component and click New.
Configure the Component
| Field | Description |
|---|---|
| Salary Component | Name (e.g., Basic Salary, House Rent Allowance, Income Tax) |
| Abbreviation | Short code used in salary slips (e.g., BS, HRA, IT) |
| Type | Earning or Deduction |
| Formula / Amount | Fixed amount or formula-based calculation |
| Depends on Payment Days | Whether the component is prorated based on working days |
Flexible Benefit Components
For employee benefit claims, enable:
- Is Flexible Benefit — Marks this component as a benefit claim component
- Pay via Benefit Claim — Required for processing benefit claims through payroll
Save
Click Save.
Some components may already be available by default. Review existing components before creating new ones.
2. Create Income Tax Slab
Go to: HR → Payroll → Income Tax Slabs
Income tax slabs define the tax brackets and rates used to calculate payroll tax deductions.
Open Income Tax Slab Form
Navigate to HR → Payroll → Income Tax Slabs and click New.
Set Up the Slab
| Field | Description |
|---|---|
| Name | Descriptive name (e.g., Standard Tax Slab 2025) |
| Effective From | Date from which this slab applies |
| Currency | Currency for the income ranges |
Add Tax Brackets
In the Slabs table, define each income bracket:
| Field | Description |
|---|---|
| From Amount | Lower bound of the income bracket |
| To Amount | Upper bound of the income bracket |
| Percent Deduction | Tax rate for this bracket (e.g., 10%) |
| Fixed Deduction | Fixed tax amount for this bracket (if any) |
Save
Click Save.
3. Create Salary Structure
Go to: HR → Payroll → Salary Structure
Salary structures define the complete payroll configuration for a group of employees — which components are included and how they are calculated.
Open Salary Structure Form
Navigate to HR → Payroll → Salary Structure and click New.
Configure the Structure
| Field | Description |
|---|---|
| Structure Name | Descriptive name (e.g., Monthly Staff Structure) |
| Payroll Frequency | Monthly / Weekly / Bi-Weekly / Daily / Custom |
| Company | The company this structure applies to |
Add Earning Components
In the Earnings table, add each earning component:
| Field | Description |
|---|---|
| Salary Component | Select the earning (e.g., Basic Salary) |
| Amount / Formula | Fixed amount or formula (e.g., based on base) |
| Condition | Optional condition for when this earning applies |
Add Deduction Components
In the Deductions table, add each deduction component:
| Field | Description |
|---|---|
| Salary Component | Select the deduction (e.g., Income Tax) |
| Amount / Formula | Fixed amount or formula |
Save
Click Save.
4. Create Salary Structure Assignment
Go to: HR → Payroll → Salary Structure Assignment
Assign salary structures to employees to define which structure applies to each person.
Open Salary Structure Assignment Form
Navigate to HR → Payroll → Salary Structure Assignment and click New.
Fill in Assignment Details
| Field | Description |
|---|---|
| Employee | Select the employee |
| Salary Structure | Select the salary structure to apply |
| From Date | Date from which this structure is effective |
| Base | Base salary amount used in formula-based components |
Bulk Assignment
To assign structures to multiple employees at once, use the Bulk Salary Structure Assignment tool.
Save
Click Save.
5. Employee Benefit Claim
Go to: HR → Payroll → Employee Benefit Claim
Benefit claims are submitted by employees against flexible benefit components included in their salary structure.
Prerequisite
The employee’s salary structure must include a flexible benefit component marked as Pay via Benefit Claim.
Open Employee Benefit Claim Form
Navigate to HR → Payroll → Employee Benefit Claim and click New.
Fill in Claim Details
| Field | Description |
|---|---|
| Employee | Select the employee |
| Claim Date | Date of the benefit claim |
| Claim Benefit For | Select the benefit salary component |
| Claimed Amount | Amount being claimed |
| Max Amount Eligible | Auto-calculated based on the benefit component settings |
Save and Submit
Click Save, then Submit. The claimed amount will be processed in the next payroll run.
6. Create Payroll Entry
Go to: HR → Payroll → Payroll Entry
Payroll Entry is the central point for running payroll. It generates salary slips, processes payments, and posts accounting entries.
Open Payroll Entry Form
Navigate to HR → Payroll → Payroll Entry and click New.
Configure Payroll Details
| Field | Description |
|---|---|
| Payroll Frequency | Monthly / Weekly / Bi-Weekly / Daily / Custom |
| Start Date | Start of the payroll period |
| End Date | End of the payroll period |
| Company | The company running payroll |
| Cost Center | Department or cost center for accounting entries |
Enable Validations (Optional)
| Validation | Description |
|---|---|
| Validate Attendance | Only includes employees with complete attendance records |
| Validate Timesheets | Only includes employees with submitted timesheets |
| Validate Joining Date | Excludes employees whose joining date is after the payroll end date |
Fetch Employees
Click Fetch All Employees to load all eligible employees. You can also add employees individually.
Create Salary Slips
Click Create Salary Slips. The system generates a salary slip for each employee. Review any errors before proceeding.
Submit Salary Slips
Review the salary slips and click Submit to finalize.
Create Bank Entry
After salary slips are approved, click Create Bank Entry to post the payment. The system creates the financial entry and updates the general ledger.
Employees receive in-app notifications after the bank entry is created.
Always review salary slips before submitting. Once submitted, changes must be made through the linked salary slip and recalculated in payroll.
7. Salary Slip
Go to: HR → Payroll → Salary Slip
Salary slips are generated through payroll and can be reviewed, adjusted, and emailed to employees.
Access Salary Slips
Navigate to HR → Payroll → Salary Slip to view all generated salary slips. Each slip is linked to its payroll entry.
Review a Salary Slip
Open a salary slip to see:
| Section | Content |
|---|---|
| Earnings | All earning components with amounts |
| Deductions | All deduction components with amounts |
| Net Pay | Gross earnings minus total deductions |
| Loan Details | Any employee loan deductions |
| Leave Details | Leave taken during the period |
Make Adjustments
If adjustments are needed, open the salary slip directly and make changes. Changes will automatically appear in the linked payroll record.
Recalculate if Needed
If incorrect changes were made, use the Recalculate Salary Slip option in the payroll entry to reset and recalculate.
Email Salary Slips
After the bank entry is created, use the Email Salary Slips option in the payroll entry to send each employee their salary slip by email.
