Step 1: Payroll Settings #

• Go to Settings and then select Payroll Settings to configure the system for payroll processing.

Step 2: Salary Components #

• Earnings and Deductions: Begin by adding salary components. There are two types:
  • Earnings: Any income-related components.
  • Deductions: Any deductions like taxes, loans, etc.
• Components can be either fixed amounts or based on a percentage of the net salary.

Step 3: Salary Groups #

• After setting up the components, create Salary Groups and assign the relevant components to them. This helps categorize employees with similar pay structures.

Step 4: Add Employees to Salary Groups #

• Assign employees to the appropriate Salary Group. Each employee can only be assigned to one salary group at a time.
• To assign, click on the Manage Employees button under the desired salary group.

Step 5: Salary Annual Tax #

• set up the Annual Tax Slabs.
• Define the financial year start month.
• Set the TDS status to Active.

Step 6: Salary Payment Methods #

• Configure the available salary payment methods. These are informational and not directly linked to actual payment processing.

Step 7: Payroll Settings #

• If custom fields were added to the employee details and need to be displayed in the payslip, enable them in this section.

Step 8: Set Payroll Currency Setting #

• Specify the currency in which salaries will be processed, if different from the default.

Step 9: Set Employee Salaries #

• Go to Payroll > Employee Salary from the left menu to set monthly salaries for each employee.

Step 10: Reports #

• Access TDS reports and other payroll-related reports to keep track of payments and taxes.