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Payroll Management

This module comprises all the payment functionalities of employees. Here, you can set up rules of payment, generate salary, and calculate bonuses.

1) Create Payroll Item​

Process:​

Go to New Payroll Item

Entry Process:​

Payroll items are categorized into four types:

  1. Income
  2. Deduction
  3. Addition
  4. Tax
  • Select the Type of payroll item and enter its Name.
  • Choose the Calculation Type for the payroll item.
  • Enter the amount/percentage in the respective field.
  • If the payroll item requires multiplication (e.g., Overtime, Holiday Present, Attendance), select the appropriate rate.

Expense/Liability Information:​

  • Income & Addition: Debit account as Salary Expense & credit account as Payroll Account Payable.
  • Deduction: Debit account as Payroll Account Payable & credit account as Salary Expense.

Example:​

  • An employee is late for 3 days, and his daily basic salary is $600.
  • Deduction Calculation: (Basic Salary: $12,000, Working Days: 20)
    • 1-day salary deduction = $12,000 × (1/20) = $600
    • For 3 days = $600 × 3 = $1,800

2) List of Payroll Items​

Process:​

Go to List of Payroll Items

Entry Process:​

  • View a list of payroll items used in the company pay scales.
  • Edit/Delete payroll items if needed.

3) Create a Pay Scale​

Process:​

Go to: Settings --> Payroll --> New Pay Scale

Entry Process:​

  • Pay Scale is a group of payroll items used to calculate salaries.
  • Enter the Pay Scale Name & Amount.
  • Remove any payroll item by clicking the (-) Minus Icon.
  • Save the pay scale.

Note:​

  • You can set the initial pay scale amount to “0.00”.
  • Pay scale amounts can be configured later during employee creation.
  • A single pay scale can be applied to multiple employees with different salary amounts.

4) Create Payroll Schedule & Post Schedule​

Process:​

Go to New Payroll Schedule

Entry Process:​

  • Payroll schedule calculates salaries based on employee category.
  • Assign a schedule to employees for salary calculation.
  • Manage two schedule types:
    1. Regular
    2. Hourly

Frequency:​

  • Daily: Used for day-to-day calculations.
  • Monthly: Used for monthly salary calculations.

5) Salary Calculation​

Process:​

Go to Active Payroll Schedule

Entry Process:​

  1. Post the Payroll Schedule:

    • Click Post Schedule (top right corner).
    • Select the schedule and set salary calculation date range & payment date.

  2. Calculate Attendance Data:

    • Click Attendance to include attendance data.
    • Click Next to calculate salary.
    • Post the journal.

  3. Process Payment:

    • Select Payroll Schedule, Date & Account Setup.
    • Select the employees whose salaries are being paid.
    • Generate a Payment Voucher.

  4. Approve Payment:

    • Complete the salary calculation procedure by approving the payment.

6) Pay Unscheduled Payment (Single Employee)​

Process:​

Go to Unscheduled Payment (Single Employee)

Entry Process:​

  1. Create a Payroll Item for the payment description.
  2. Enter details:
    • Select Date, Employee Name, Payroll Item, Payable Amount & Accounting Information.
  3. Approve, Reject, or Mark Pending payments (e.g., Tiffin Bill).

7) Pay Unscheduled Payment (Multiple Employees)​

Process:​

Go to Unscheduled Payment (Multiple Employees)

Entry Process:​

  1. Enter Payment Details:

    • Fill in Payment Create Date.
    • Select Payroll Item & Accounting Information.

  2. Select Employees:

    • Choose employees eligible for payment (e.g., Mobile Bill).

  3. Enter Payment Amount:

    • Input the amount for each employee.
    • Delete or Save records as needed.

  4. Approve/Reject Pending Payments:

    • Finalize payments by approving or rejecting them.