Before you start
- Every overtime request of the month that should be paid has been approved. Overtime approved after the pay run waits for the next one (Overtime: request, approval and payment).
- Absent days are entered, and if the company uses attendance-based payroll the late, early-out and absent days are chosen on Absentee Payroll Deduction. An absent day cannot be entered once the employee's payslip for the period exists (Absence, unpaid leave and attendance in payroll).
- One-off income and deductions, medical tax discounts, previous income and the month's Variable allowance rate are entered (Extra income and deduction: one-off items, PF loan, medical discount, previous income, Payroll items: the allowances and deductions you can use).
- A change to one month's loan installment is entered as a loan override before the run (How loan installments and interest are taken from pay).
- Every employee has a basic salary, and the fiscal year has its Tax rule. Without them the employee cannot be selected (Designation salary and grades, Tax rules: slabs, discounts, rebates and relief).
- Collect the month's changes
Overtime approved, absent days entered, one-off income and deductions, variable rates, loan overrides, medical discounts (Extra income and deduction: one-off items, PF loan, medical discount, previous income, Absence, unpaid leave and attendance in payroll, How loan installments and interest are taken from pay).
- Generate
Payroll generate › Add: choose the period, tick the checklist, select the employees (Run the month's payroll).
- Check
Open a few payslips. Compare one with a hand calculation, and look closely at employees promoted during the month and at the tax lines when anyone has a medical tax discount. Delete and regenerate any that are wrong (Reading a payslip, How a payslip is worked out).
- Recommend
Send the payslips for approval (Recommend, approve or disapprove payslips).
- Post
Payroll JV: choose the document number and date and create the voucher. Then compare the voucher's Employee net salary with the payslips' net salary (What payroll posts to Accounting).
- Reports and payments
Run the monthly payroll, PF, tax and advance reports; the accountant records the salary payment and the tax and fund payments (Payroll reports).
- Tax rule
Add the next fiscal year with its periods and the Tax rule before its first pay run (Tax rules: slabs, discounts, rebates and relief).
End of the pay run day
- A few payslips are opened, and one is compared with a hand calculation. A wrong draft is deleted and generated again (Reading a payslip, Run the month's payroll).
- The payslips are recommended, and the salary approver has approved them. An approved payslip is final (Recommend, approve or disapprove payslips).
- After posting, the Net salary of the payslips is compared with the Employee net salary lines of the voucher (What payroll posts to Accounting).
- The reports for the month are run, and the accountant records the payment of the salary, the tax and the funds (Payroll reports).