Payroll process - Step 3

Payroll process - Step 3

In the previous steps all the inputs have been updated and now you can run payroll for the month for the employees in scope.

Running Payroll


If you are running payroll for a large number of employees the system might take some time. You will see a screen as shown below -


Manual updation of TDS

You can navigate to another page but do not close the window. Once the payroll is run you might see the screen as shown below.

This is an optional step and can be disabled, at this stage TDS can be manually updated for any employee, this can be done through bulk upload also. If TDS of an employee is being deducted at 20% of actual (no PAN scenario) then his name will not come on this page and tax for such employees cannot be updated manually.

If an adhoc payment or variable salary component is being paid in a month the incremental tax due to that payout is deducted completely in the month in which it is paid. Refer to the document on TDS Calculation methodology for more details.

Manual updation of TDS is allowed in the month of March but you can only increase the TDS and cannot decrease it. Cess figures are automatically calculated based on the statutory rules and cannot be changed manually. Cess will be 4% of the TDS amount but if the previous employer declaration does not have Cess as 4% of TDS then it might not match to 4% since in EazeHR payroll calculations the system combines calculated the total tax based on the taxable income and then calculates cess on top of it.

 If employee is falling in the higher tax slabs and Surcharge on Tax is applicable then this Surcharge will be shown included in the TDS figure on this page. If you reduce the TDS figure then first Surcharge will be reduced and then Tax will be reduced, if you increase the TDS figure then Tax will be increased. 

Manual updation of Professional Tax

You can manually update the Professional Tax which is being deducted from this page.

Review Tax Free Benefits

On the second tab you can review details of tax free benefits (food coupons or a service) being given to employees and their value, these are non cash components.


Perquisite Value Calculations

If Employer's contribution to EPF / NPS is exceeding 7.5 lakhs in a financial year then an additional perquisite tax is applicable. Refer articles on Understanding taxability of salary components and Taxable Perquisites and for more details.


You can download the detailed calculation of this perquisite value.

Click on "Next" to review salary register.



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