Configure payroll module as per your company’s requirements. Map your existing processes and run payroll accurately.
The configure payroll page allows you to:
To configure payroll module, you need to:
- Log into the system as HR Administrator.
- Go to Settings >> Payroll Settings >> Configure Payroll
The Configure Payroll page appears, as shown in Figure 1. The page is already configured with default settings that are used most often.Figure 1
- Configure Reminder to run Payroll in Time
Select Send reminder checkbox. Then specify the number of days in the Days to send automatic reminder (prior to pay period) field that appears, to set the reminder for the HR manager / HR admin to run the payroll process on the due date, each month. For example, if you set 3 in Days to send automatic reminder (prior to pay period) field and you run payroll process on 30th day of each month then you will get an automatic reminder on 27th of each month reminding you to run payroll in three days.
- Configure Approval for Payroll Processing
Select Approval Required for Payroll Processing checkbox and then provide the name of the approver in the text field under it.You can search the name of the approver by clicking Advance Search icon next to the field.Tip:
Setting an approver allows you to get the salary calculations rechecked for any errors by the authorized approver before finalizing it. After the salaries are finalized, you cannot make any changes to them.
- Declare Pay Period type to be used
The Pay Period Type field displays Monthly frequency selected by default to calculate salaries of employees. You can change the pay period type if required.
- Declare Pay Periods
Click View/Generate Pay Periods for FY link to generate pay periods for the entire year. A window that allows you to generate pay periods for the financial year appears, as shown in Figure 2.
- Click Add.The pay periods for the selected pay period type appears for the entire financial year, as shown in Figure 3.
- Click cross icon to close the window.
- Setup Investment declaration time period
Select Investment Declaration checkbox to use investment declaration functionality in your organization, as shown in Figure 4. The Investment Declaration PayPeriod field appears.Figure 4
- Specify the start date of the investment declaration time period in the Start Date field and the end date of the investment declaration time period in the End Date field.
- Select the investment declaration processing mode from the Processing Mode field. The available options are:
- Declared: The payroll will be calculated on the declared investment.
- Actual: The payroll will be calculated on the Actual investment
- Ask: The system will ask which processing mode to use before calculating payroll.
- Ignore: The system will ignore investment declarations all together and will calculate tax on the salary.
Employers are required to deduct tax from an employee’s taxable income. This is Tax Deducted at Source (TDS). To make the correct TDS calculation from the beginning of the financial year, the employer needs a declaration from the employees about the deductions and exemptions to which they are entitled.
Throughout the year, the tax is deducted based on the information employees provide. One or two months before the financial year ends, the employees need to submit documentary proof of their actual investments in the financial plans that they had declared so that tax adjustments can be made and correct amount of tax can be deducted from their income.
The investment declarations made by employees to allow correct TDS deductions from their salaries from the beginning of the financial year is called Declared Investment.
At the end of the financial year, the employees need to submit the documentary proof of the actual investments in the financial plans that they had declared so that tax adjustments can be made and correct amount of tax can be deducted from their income. The investments made by the employees for which they submit the proof is called Actual Investment.
- Set Monthly Sheet Processing Mode
Select the monthly sheet processing mode for the payroll from Monthly Sheet Processing field, as shown in Figure 5.
The available options are:
- Automatically In Payroll: This option allows you to adjust monthly sheet variables during the payroll processing.
- Outside Payroll: This option allows you to upload the monthly sheet variables through upload functionality to process payroll.
- Configure Tabs Visibility
Select Allow employees to view yearly Details checkbox to display the Year to Date Details tab to the employee (Log in as an employee to view this). The Year to Date Details tab displays the payments made to the employee till the today for each month under each salary head, as shown in Figure 6.Figure 6
- Select Display Tax Advice to employees? checkbox to display Seek TDS Advice tab to the employee.The Seek TDS advice tab displays the salary amounts paid till date, projected amounts, exemptions and the taxable amounts. The page further details about the investments that an employee has made and the exemptions that (s)he can get on that amount, as shown in Figure 7.Note: To check this, you need to login as an employee and go to My Profile>> My Salary Details>> click () arrow icon and then Seek TDS Advice link.
- Select the required option from Allow relationship between salary heads field to allow/ deny master-dependent relationships between salary heads that can be setup while setting up a salary structure.
- Choose Display salary structure to employees and select a relevant option for showing monthly or yearly salary breakup to employees.
- Click Update.
The configuration settings are saved successfully and the message suggesting the same appears on the top.
Setup Payroll Variables