Step - 1: Payroll Settings

Go to Settings -> Payroll Settings

Step - 2: Salary Components

You first need to add salary components. Components are of 2 types,  Earning and Deduction. Components can be fixed or percentage of net salary basis.

Step - 3: Salary Groups

Once you have created the salary components you need to assign the components to a salary group. So, create and assign the components to a salary group.

Step - 4: Add Employees to Salary Groups

After salary groups are created you will have to assign the employees to the salary groups. One employee can be assigned to only one salary group at a time. Click on the Manage Employees button for the salary group you want to add employees to.

Step - 5: Salary TDS (If Applicable)

If Salary TDS is applicable in your region then you can set up the salary tax slabs. You also need to set the financial year start month.

Do not forget to set the status to active for TDS.

Step - 6: Salary Payment Methods

You can manage the salary payment methods in this section. These methods are just for information purposes only and are not used for the actual payment.

Step - 7: Set Employee Salaries

The last step is to set employee salaries. Go to Payroll -> Employee Salary from the left menu. This section sets the monthly salaries for each employee.