This guide helps you define payroll rules accurately and prepare upstream data such as attendance, leave, and employee master records before payroll processing.
Foundation settings
Configure salary components, allowances, deductions, tax rules, reimbursement treatments, and payout cycles before opening monthly payroll. These settings should align with employment contracts and your finance reporting expectations.
- Earnings and deduction heads
- Tax, PF, ESIC, and professional tax logic
- Monthly, weekly, or custom payroll cycles
- Approval sequence for preview and lock
Upstream dependencies
Payroll quality depends on accurate attendance, leave, overtime, and last working day data. Resignations and final settlements should be aligned with payroll close periods so pending salary, recoveries, and encashments are not double-counted.
Operational recommendations
- Lock attendance before final payroll review
- Resolve unpaid leave and correction requests first
- Review final settlements for exiting employees separately
- Export and validate journal-ready summaries before release