Payroll Frequency and Payroll Period
Payroll is designed to be run on a monthly basis – there is no predefined date
but ideally it should be run between 28th of the month and 4th of the next month.
Payroll is always run for the period between 1st of the month till the last working
day, if it is run before the last working day it assumes that the employee is
present for the remaining days and processes accordingly. There are two parameters
in setup which can be used to prevent data from beyond the cut off date from
being considered in payroll -
1. Reimbursement cutoff date : employees cannot submit payroll reimbursements
after this data. Payroll should be run after this date but there is no check
in the system and you can do a trial run before also
2. Leave cutoff date : leaves or attendance date after this date is not considered
in current month's payroll, process will be run assuming that employees are present
after the cut off date
Running Partial Payroll
Although the software allows the Payroll Manager to exclude employees while running
a payroll it is not advised to do so as the statutory compliance have to be paid
within a timeline. If due to any reason the employee is not to be paid the correct
method is to hold his payment and not excluding him from payroll.
Data Completeness
Before payroll for any employee can be run the software ensures that the employee's
salary structure is in place, any pending declarations like rent, tax are approved.
Attendance and Leave Without Pay data comes from Leave and Attendance module.
There are multiple methods of sending out reminders to HR / Managers and Employees
and of linking missing attendance to salary deductions.
Payroll steps
Steps
to be followed for updating an employee's data are outlined in the following
articles -
1. Updating payroll data
2. Employee payroll details
3. Updating salary structure
4. Nomination and Declarations
5. Salary processing for a new joiner
Payroll related declarations
There are different types of declarations some of which can be done by employees
directly and some of which are to be released by the Payroll Manager.
1. Tax Saving declarations
2. Year end supporting submission - at the end of year in India payroll the verification
of tax saving documents has to be done. This process has multiple components
which are covered in Managing tax saving submissions, Updating tax supporting / rent receipts directly
3. Flexible Benefits declarations
4. House Property declaration
Monthly payroll processing
The main activity of processing payroll on a monthly basis can be understood
by going through the articles listed below
1. Monthly payroll processing (India)
2. Generating monthly statutory documents
3. Salary slip generation
4. Generating bank advices, stopping payments
5. Updating tax submission details
Full and Final / Post Separation Payouts
Employee's full and final can be done and payments can be done to them even after
full and final has been processed
1. Full and Final processing
2. Post separation payments
Other processes
Other processes which are managed by Payroll Manager are.
1. Loans and Advances, Loans with perquisites
2. Leave without pay deductions
3. UAN / ESI Number updation
4. Taxfree gift payment
5. Statutory Bonus payments
6. Processing Form 16
7. Generating 24Q
8. Year End House Property Verification
9. Cancelling Payroll, cancelling Full and Final
Reports can be accessed from Payroll Reports section.