Step 1: Payroll Settings #

• Navigate to Settings > Payroll Settings to begin configuring payroll settings.

Step 2: Salary Components #

• Add Salary Components: Define salary components, which can be either:
  • Earnings
  • Deductions
• Components can be set as fixed or calculated as a percentage of the net salary. Ensure that component values align with the selected payroll cycle (Monthly, Weekly, Bi-Weekly, Semi-Monthly).

Step 3: Salary Groups #

• Once salary components are created, assign them to specific salary groups.
• Create Salary Groups: Group related components together, ensuring they match the payroll cycle.

Step 4: Add Employees to Salary Groups #

• Assign Employees: After creating salary groups, assign employees to their respective groups. Each employee can only be part of one salary group at a time.
• Click Manage Employees for the salary group to add employees.

Step 5: Salary Annual Tax (If Applicable) #

• If Salary TDS (Tax Deducted at Source) applies in your region, set up the tax slabs.
• Define the Financial Year start month.
• Ensure TDS Status is set to Active.

Step 6: Salary Payment Methods #

• Configure salary payment methods for informational purposes. These are not used for actual salary payments but help in managing payment details.

Step 7: Payroll Settings #

• Custom Fields: You can manage custom employee fields to include in the salary slip or not.

Step 8: Set Employee Salaries #

• Set Salaries: Go to Payroll > Employee Salary from the left menu to define the monthly salary for each employee based on their payroll cycle.