Payroll

Addon Required

This feature requires the Payroll addon to be enabled. Navigate to Settings > Addons to enable it.

Payroll provides a complete system for processing employee salaries, managing pay components and modifiers, defining salary structures, and generating payroll reports. This guide covers all features available from the admin/manager perspective.

Dashboard

Navigate to Payroll > Dashboard to access the payroll dashboard.

The dashboard provides an at-a-glance overview of payroll activity:

• Key Statistics: Total payroll records, pending records, approved records, paid records, total gross pay, and total net pay
• Monthly Trend: A chart showing gross and net pay totals for the past 6 months
• Status Distribution: A chart showing the breakdown of payroll records by status (Pending, Approved, Paid, Rejected, Cancelled)

All Records

Navigate to Payroll > All Records to view and manage payroll records.

Viewing Records

The payroll records list displays:

• Employee name
• Payroll cycle
• Gross pay
• Total deductions
• Net pay
• Status (Pending, Approved, Paid, Rejected, Cancelled)

Processing Payroll

To process payroll for a cycle:

1. Navigate to the payroll records page
2. Click Process Payroll
3. Select the payroll cycle to process
4. The system validates that:
   • A base salary component exists
   • Employees have salary structures assigned
5. Confirm to begin processing
6. The system calculates earnings and deductions for each employee based on their salary structure and applicable modifiers
7. Payroll records are created in Pending status

Prerequisites

Before processing payroll, ensure that:

• At least one payroll component is marked as the base salary
• Employees have salary structures assigned with component amounts defined

Payroll Workflow

Payroll records follow an approval workflow:

Status	Description
Pending	Payroll has been processed and is awaiting review
Approved	Payroll has been reviewed and approved for payment
Paid	Payment has been disbursed to the employee
Rejected	Payroll was rejected (reason required)
Cancelled	Payroll was cancelled before payment

Step-by-step workflow:

1. Process: Generate payroll records for a cycle. Records start in Pending status.
2. Review: Open individual records to review the breakdown of earnings and deductions.
3. Approve: Click Approve to approve a record for payment. You can also use Bulk Approve to approve multiple records at once.
4. Mark as Paid: Once payment is disbursed, click Mark as Paid to update the status.

Rejecting Payroll

To reject a payroll record:

1. Open the payroll record
2. Click Reject
3. Provide a reason for rejection (required)
4. Confirm

Cancelling Payroll

To cancel a payroll record:

1. Open the payroll record
2. Click Cancel
3. Confirm

Cancellation Restrictions

Payroll records that have already been marked as paid cannot be cancelled.

Viewing Payroll Details

Click on any payroll record to view its full breakdown:

• Employee information
• Payroll cycle details
• Earnings breakdown (each earning component and amount)
• Deductions breakdown (each deduction component and amount)
• Gross pay, total deductions, and net pay
• Applied modifiers (benefits and deductions)

Payslip

Each payroll record has a payslip view that includes:

• Company details and logo
• Employee information
• Pay period
• Earnings and deductions breakdown
• Net pay

Click Download PDF to generate a PDF payslip for the employee.

Bulk Operations

• Bulk Approve: Select multiple pending records and approve them all at once
• Bulk Delete: Select multiple records and delete them

Components

Navigate to Payroll > Components to manage payroll components.

Payroll components define the individual earning and deduction items that make up an employee's salary (e.g., Basic Salary, House Allowance, Tax, Insurance).

Viewing Components

The component list displays:

• Component name
• Code (auto-generated)
• Type (Earning or Deduction)
• Display order
• Base salary indicator
• System-managed indicator

Creating a Component

1. Click Create or Add Component
2. Fill in the component details:

Field	Description
Name	Component name (e.g., Basic Salary, Transport Allowance)
Code	Auto-generated unique code
Type	Earning or Deduction
Display Order	Order in which the component appears on payslips
Is Base Salary	Whether this is the base salary component
Description	Description of the component

3. Save the component

Base Salary Component

Only one component can be marked as the base salary. This component is required before payroll can be processed. If a base salary component already exists, you cannot mark another component as base salary.

Editing and Deleting Components

• Edit: Click Edit to modify a component's details
• Delete: Click Delete to remove a component

Deletion Restrictions

System-managed components and components that are currently in use in salary structures cannot be deleted.

Modifiers

Navigate to Payroll > Modifiers to manage payroll modifiers.

Modifiers are additional benefits or deductions applied on top of the standard salary structure. They can apply to all employees or to specific individuals.

Viewing Modifiers

The modifier list displays:

• Modifier name
• Type (Benefit or Deduction)
• Applicability (All Employees or Individual)
• Amount or percentage
• Employee name (for individual modifiers)

Creating a Modifier

1. Click Create or Add Modifier
2. Fill in the modifier details:

Field	Description
Name	Modifier name (e.g., Overtime Bonus, Loan Deduction)
Type	Benefit (adds to pay) or Deduction (subtracts from pay)
Applicability	All Employees or Individual
Employee	Specific employee (when applicability is Individual)
Amount	Fixed amount
Percentage	Percentage-based amount
Notes	Additional notes

3. Save the modifier

Editing and Deleting Modifiers

• Edit: Click Edit to modify a modifier's details
• Delete: Click Delete to remove a modifier

Salary Structures

Navigate to Payroll > Salary Structures to manage employee salary structures.

A salary structure defines the specific payroll components and their amounts for an employee. Each employee must have a salary structure assigned before payroll can be processed for them.

Assigning a Salary Structure

1. Navigate to the salary structures page
2. Select an employee
3. Assign payroll components with their respective amounts
4. Save the structure

The salary structure determines what earnings and deductions are calculated when payroll is processed for that employee.

Modifying a Salary Structure

1. Open an employee's salary structure
2. Adjust component amounts as needed
3. Save the changes

Changes to salary structures take effect on the next payroll processing cycle.

Reports

Navigate to Payroll > Reports to access payroll analytics.

Payroll Register

Navigate to Reports > Payroll Register.

A comprehensive list of all payroll records with full details. Useful for auditing and record-keeping.

Department Summary

Navigate to Reports > Department Summary.

Compare payroll metrics across departments:

• Department name
• Employee count
• Total gross pay
• Total deductions
• Total net pay
• Average salary per employee

Filter by:

• Date Range: Start date and end date
• Department: Specific department
• Payroll Cycle: Specific payroll cycle

Export the department summary report to PDF for offline review.

Tax Summary

Navigate to Reports > Tax Summary.

A summary of tax-related deductions across employees, useful for tax reporting and compliance.

Employee History

Navigate to Reports > Employee History.

View the payroll history for a specific employee over time, showing all payroll records, earnings, deductions, and net pay across multiple cycles.

Settings

Navigate to Payroll > Settings to configure module settings.

Payroll settings are managed through the module settings page. Configuration options control payroll processing behavior, default values, and display preferences.

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Next: Learn about Expense Types to configure expense categories, or continue to Expense Management to manage employee expense claims.