Pay run is the act of processing salary payments to the employees for the pay period usually a month or the no of days employees worked in a month. The first pay run and the subsequent pay run periods are derived from the settings configured on the pay schedule page and to configure (or) view the pay schedule navigate to Settings > General settings > Pay schedule.
Pay run is a continuous process from the first pay run, for example, the first pay run of a company is between 25th April to 24th May, and then the next pay run will be calculated from 25th May to 24th June. This module helps to configure and process the pay runs effectively.
TO CONFIGURE PAY RUNS #
- Click on the ADD NEW button
- Select the Pay period from the drop-down menu.
- Next, select the location of the entity you want to run the payroll.
- Click “CREATE PAY RUN” to run the selected pay run.
- Once you click on Create pay run button, the pay run will be created & displayed on the top of the list page. By default, created pay run’s status will be in Draft.
- To process the pay run, you can either click on the row or click on the edit button available on the option.
- After that, you will view three different summaries. The summary view helps to verify the data and cross-check component wise details of pay run and to avoid errors.
Payroll summaries are
- Pay run summary
- Employee summary
- Taxes & deductions
The detailed features and the functions of the above summaries are available on their respective pages.
- Once you verify the data, you can click on “SUBMIT” to proceed further.
- After submitting, you may either “APPROVE” or “REJECT” the pay run. If you wish to process, click on “APPROVE”.
- Once approved, click “RECORD PAYMENT” to process the payment to the employees. By clicking the record payment, you will be able to assign the date of payment and view the mode of transfer details. By default, the payslip notification sent to employees to download and view their payslip is enabled in this menu. If you wish not to send the notification you may disable the option from here.
- Once the payment is approved you will be able to download and view the bank advice excel by clicking the “DOWNLOAD BANK ADVICE” This excel can be uploaded to the respective bank portal as a pay run advice for the pay run month. The pay runs excel sheet will also be helpful to cross-check the paid amount.
- Pay run can also be created using “CREATE PAY RUN” from the dashboard menu.
- If you wish to cancel the pay run, you can click “REJECT” on the pay run page. This will cancel the pay run and the rejected pay run will again go back to draft status.
Pay run cost summary
Pay run cost summary is a report that shows the total cost for this pay run with a pie chart representation of the total cost. It displays each detail such as net salary, income tax (TDS), PT, EPF, ESI, LWF and the total payroll cost. It helps the companies to manage their budget and costing.
A payroll summary is a statistical report of a summary of the details for this pay run, which shows the pay run payment date, due date, payable days, total no of employees and the status of the pay run, whether it is “Draft”, “Submitted”, “(Approved or Rejected)” and “Paid”.
The employee summary page shows a columnar view of employee wise salary details for the current pay run such as gross salary, paid days, deduction, taxes, benefits & allowances, reimbursement, and the net salary payable.
You can also manage the employee’s salary process from the summary page, and they are listed below. The edit option is available on the right corner for each employee to manage his or her pay run.
- Withhold salary
If you wish to stop processing the salary for any employee(s) you may use this option to hold their salary until further approval. With this option, the salary of the rest of the employees can be processed except for the withheld employee(s).
- Release withheld salary
If you have withheld the salary for the previous pay runs of any employee(s), even if it is more than one pay run, you may release the entire withheld salaries in one go or you can choose any of them to release and process the payment along with the current pay run in this “Release withheld salary” option.
- Skip from this pay run
If you wish to exclude an employee, you may skip his/her payroll calculation by clicking this option.
- Terminate employee
If you wish to terminate an employee from the company, you can use this option to enter their termination details and initiate the termination process.
- Edit attendance
If you would like to edit the attendance and the no of days salary payable you can do so by clicking this option.
- View TDS sheet
If you want to view the tax calculation and the TDS amount for this employee, you can click on this option.