Finalization of payroll refers to the final verification of payroll records before disbursal. The salaries can be finalized either by the approver or the HR Manager/ HR Admin. This help page demonstrates steps to finalize employee salaries.
If there is an approver in the process, then salaries are approved and finalized by the approver. Go to Not shared with employees tab. However if there is no approver, the salaries need to be finalized by the HR Manager/ HR Admin. To know steps to include an approver in the payroll process, click on Configure the payroll process.
Post finalization, no modifications can be made to the salaries. If modifications are required, you can only erase and recalculate the payroll.
To finalize and recalculate the payroll, you need to follow these steps:
- First initiate the payroll process. To do that, click on the Initiate Payroll Run and follow the steps.
- Then calculate the payroll after payroll initiation. Click on Calculate Payroll and follow the steps 1 to 7.
- After payroll calculation, finalize the payroll. The payroll can be finalized by the approver or HR Manager. The steps for both the methods are shown below.
I) Payroll Finalization by Approver
If the Approver is configured, follow the steps given below to finalize the salaries:
a. First the payroll is prepared and it is submitted for the verification. To do that, click on Submit Payroll for Approval and follow the steps.
b. To learn how an approver verifies and approves payroll, click Verify and Approve Payroll. The payroll calculation for all the employees is finalized and approved by the approver. Once the payroll calculation is approved, HR manager/ HR Admin gets a message that the payroll is approved for the specified pay period as shown in Figure 1.
Note: The approver verifies and finalizes the payroll. During verification if the approver finds any error, (s)he can send it for recalculation. A rejection message for one or more payroll records appear on the home page.
Once the approval is successfully done, follow the instructions below.
c. Click View link on the message.
d. The Not shared with employees section appears on the screen. The salaries shown here are the finalized salaries for the selected employees.
Note: The number of sections in the In Process tab may vary depending upon the Empxtrack version that you are using. In Empxtrack Free Payroll and HR software, there are only two sections under In Process tab.
e. You can even click Reports to view bank, statutory deductions, consolidated payroll and variation reports.
f. You can now perform multiple functions in the page (see Figure 3):
- Delete data – Erase the payroll by clicking on the Delete icon for the record(s) and then calculate the payroll again. The employees whose payroll is erased appear in Salary Not Calculated section. For the erased payroll, you need to Run the payroll process again. To know more about running the payroll process, click Initiate Payroll.
- View details – Click View icon to get details of the salary being processed.
- View TDS – Click View TDS advice icon to view details of the tax deducted at source for the specific employee.
II) Payroll Finalization without Approver
If there is no Approver involved in the payroll process, follow these steps to finalize the salaries:
The Not finalized tab displays a list of employees whose salaries are calculated (see Figure 4).
a. Select the employees whose salaries need to be finalized. You can select All checkbox in the header to select all the employees together.
b. Click Reports to run reports (such as variation, statutory deduction and consolidated payroll reports) to compare the payroll run with a prior run.
c. Now click Finalize button to finalize salary of the selected employees.
d. Click OK on the confirmation message that appears. The payroll is successfully finalized and a message suggesting the same appears.
e. In the Not shared with employees section, the finalized salary records appear with the details of Gross salary, Deductions, Net Payout, Payment mode, Disburse date and Action icons.
f. Once the records are finalized, adjustments cannot be made to them. You can only perform the following functions: delete or view salary records, view TDS advice, download the payslip (see Figure 7). If you delete the records, they will be moved to Salary Not Calculated section and you will have to calculate the payroll again.
You can now set payment mode to disburse the salaries.
Click on the following to know more about them
- Initiate Payroll Run
- Calculate Payroll
- Adjust Payroll
- Submit Payroll for Approval
- Finalize Payroll
- Set Payment Mode
- Disburse Payroll
- Manage Challan Info
- Capture Multiple Challan
- Capture Challan TNS 281 Details
- Generate Form 24Q
- File Validation Utility
- Add Acknowledgment Info
- Declare Investments
- Employee data verification and update
- Import number of days employee worked
- Update out of payroll payments
- Calculate deductions and set up disburse date
- Share payslips with employees
- View Payroll Reports
- View and download statutory reports and challans