Here's a quick checklist of 11 important activities that you should do every month before hitting the ‘Run Payroll’ button so that you don’t miss out on any inputs, and you have an accurate payroll output.
You can skip things that are not applicable to you.
1. Update leaves encashment days – If you want to pay the leave encashment to employees, you will need to update the leave encashment days. For further details/info please click here.
2. Update Salary Revision if any – If there is salary of employees, please update it so that the revised salary is considered for payment and not the old one. If there is no change in salary, you can skip this step. For further details/ info on how to update the salary increments/revisions, please click here.
3. Lock Income Tax declarations – You have to lock the Income tax declarations so that the employees will not be able to make changes in tax declarations at the last minute. For further details/info click here.
4. Update the status of employees whose salaries need to be kept on hold – If you don’t want to pay salaries to some employees, such as those who have resigned etc, you need to update the pay status as ‘on hold’ so that their names do not appear in the bank statements. Click Here to see the steps of doing a stop/release payment.
5. Update status of all resigned employees – If an employee has resigned, please update the working status as ‘resigned’ along with the last working day so that the salary for the last month is calculated on a prorated basis.
Click here to see the steps.
6. Update details of employees who have joined the company – Update all details such as name, date of joining, CTC, bank account no., etc. for new hires so that they are considered for payroll run and their salary can be calculated by the system. You will also need to calculate the arrears for new hires. Click here for further information on how to calculate new joinee arrears.
7. Update loans – If employees have taken a loan and you want to deduct any amount other than the standard deduction of the loan, you can override the same. Otherwise, the standard loan recovery amount will get deducted, if applicable. To know more about override options, please click here.
8. Update overtime – If you have an overtime policy and pay extra salary when employees work for extended hours, you’ll need to update the overtime units for the month. Click here to know the steps to update the overtime units.
9. Approve pending claims submitted by employees – Approve all pending claims of leaves, reimbursements, and flexible benefits plans submitted by employees.
10.Update changes in data of employees – If there is any change in designation, location, confirmation status, or any other similar information of employees, please update it so that the system takes updated values for the payroll run.
11. Loss Of Pay (LOP) Adjustment - If you have deducted more or less salary for leave without pay in the previous month, you’ll need to correct it in this month’s payroll. Click here to know the steps to adjust the LOP for the employees.