The idea
Payroll configuration (Payroll › Payroll configuration) holds what is the same for every employee. Each employee's own choices (PF yes or no, CIT, bank) are on their Payroll details (An employee's payroll details). The page has two tabs, and one Save.
General settings
| Setting | What it does |
|---|---|
| PF or SSF | Choose PF Based or SSF Based. A company uses one of them. Changing it clears the account number and the two percentages |
| PF/SSF account no | Tick the box in front to enter the PF or SSF details: the account number (required when ticked) and the two percentages below |
| Company contribution PF/SSF and Employee contribution PF/SSF | The company's and the employee's percentage of salary. Up to two decimals; not more than 50 |
| Gratuity account no, Company contribution gratuity, Employee contribution gratuity | Tick the box to switch monthly gratuity on, then the account and the two percentages |
| Citizen investment trust A/C no | Tick the box to switch CIT on. The amount is set per employee |
| Salary based on | Whether the salary comes from each designation's salary table (the "designation setting") or from each employee's own salary (the "employee setting") |
| Designation level | How designations are structured: Designation; Designation and Level; or Designation, Level and Shreni |
| Insurance relief amount annual and Medical insurance relief amount annual | The most insurance premium that reduces an employee's taxable income in a year |
| TDS percentage | The percentage taken on allowances marked as TDS-able. Not more than 15 |
| Max overtime hour in a day | The most overtime hours one request may ask per day |
| Pay day | The day of the month salary is paid |
| Loan (Max no of salary month) | An advance cannot be more than this many months of basic salary |
| Medical tax discount | The yearly limit of the medical tax discount |
| Attendance based payroll system | When ticked, salary is reduced for late, early-out and absent days that the payroll officer selects (Absence, unpaid leave and attendance in payroll) |
| Deduct unpaid leave salary | When ticked, each day of approved unpaid leave is taken off salary |
| Include Absence Salary | Shows the absent days as a deduction line on the payslip, instead of lowering the salary line |
| Apply Leave Impact to PF/SSF | When ticked, PF, SSF and gratuity are worked out on the salary after leave and absence is taken off |
The Max tax relief amount, the Max tax relief percentage and the Medical tax discount shown in the grey note at the top are set when your company is set up and cannot be changed on this page; changing them needs Penahak support.
The screen refuses a contribution above 50 and a TDS percentage above 15. Ticking Attendance based payroll system or Deduct unpaid leave salary shows a notice that explains the effect.
Ledger settings
The payroll journal (What payroll posts to Accounting) posts to the accounts you choose here. Choose a ledger for each: Gross salary, Provident fund add, Leave salary, Gratuity add, Employee net salary, Citizen investment trust less, Provident fund less, Gratuity less, Social security tax ledger, Salary income tax, Salary TDS, Salary advance, Salary loan, Interest on loan and Provident fund loan.
Also choose an Allowance group and a Deduction group: the account groups under which Penahak creates a ledger for each payroll item you add (Payroll items: the allowances and deductions you can use). Set both before adding payroll items.