Monthly salary setup

Before paying monthly salaries you set up, once, the building blocks: designations, pay heads, salary packages, employees and payroll months.

Designations

HR Payroll › Payroll Setup › Designations: job titles such as Accountant, Sales Manager, Cashier. New companies start with one, Staff (no leave days, no advance limit). Each designation also sets two limits for its employees:

• Leave Days: paid leave days a month, 0 to 31. Days marked Leave in attendance are paid up to this number; leave above it is deducted from the salary like an absence (see Attendance).
• Advance Amount: the most one advance should be. A bigger advance is not blocked, but you are asked to confirm ("This advance (…) is over the designation's advance limit (…). Continue?"). 0 means no limit; it can't be negative.

A designation can be deleted while no employee uses it.

Pay heads

HR Payroll › Payroll Setup › Pay Heads: the parts a salary is made of. Each pay head has a name and a Type:

• Addition: adds to pay, for example Basic Salary, Housing Allowance, Transport Allowance.
• Deduction: subtracts from pay, for example Social Security, Tax.

New companies start with Basic Salary (Addition) and Social Security (Deduction).

A pay head used in packages can't be edited or deleted ("This pay head can't be deleted because a salary package uses it.").

Salary packages

HR Payroll › Payroll Setup › Salary Packages › Add: a named set of pay heads with amounts, for example Cashier package.

1. Enter the Package Name (unique) and Currency.
2. Add lines: choose the Pay Head and type its Amount (more than zero; type deductions as a positive amount too). Additions add to the Total, deductions subtract. Each pay head can be in a package once.
3. Save. A package needs at least one pay head, and its Total must be more than zero.

Give employees on the same pay the same package; change the package to change everyone's salary. Once a Month Setting uses a package it can't be edited any more, because paid months were worked out from it: create a new package and give it to the employees instead. A package can be deleted while no employee and no Month Setting uses it.

Employees

HR Payroll › Monthly Employees › Add (it warns you, with a link to Payroll Setup, when no designation or salary package exists yet):

• Employee Code (suggested from Code Setting, for example ME/26/000001; you can change it) and Employee Name (unique)
• Monthly Designation and Salary Package (the employee takes the package's currency)
• Personal details: gender, date of birth, marital status, phone, email, address, qualification, Joining Date, image
• Active

An employee with attendance, advances, bonuses or salary records can't be deleted. Untick Active instead: inactive employees are left out of attendance and of new Month Settings.

Payroll months (Month Setting)

HR Payroll › Monthly Payroll › Month Setting: do this first each month, before paying its salary. The list shows every month you have added, newest first, with the month chosen at the top highlighted; when that month is missing, a warning says so.

1. Add. The Salary Month starts at the month chosen at the top.
2. The page lists every active employee with their salary package (from the employee). Add a Note if you want.
3. Save.

The month's salary voucher pays only the employees saved in that month's setting, with those packages. Only active employees with a salary package are saved; when there are none, saving is refused. Add each month once. Once the month's salary is paid, its Month Setting can't be deleted.

Next: Paying monthly salaries.