We are using four payroll cycles.
1. Monthly - For Monthly salary slip. You can generate a monthly salary slip by selecting employee's payroll cycle monthly.
2. Weekly - For weekly salary slip. You can generate weekly salary slips by selecting employee's payroll cycle weekly. It works Monday to Sunday (7 Days).
3. Bi-Weekly - For bi-weekly salary slip. You can generate bi-weekly salary slips by selecting employee's payroll cycle bi-weekly. It works for two weeks (14 days).
3. Semi-monthly - For semi-monthly salary slip. You can generate semi-monthly salary slips by selecting employee's payroll cycle semi-monthly. It works from the 1st date of the month to the 14th date of the month (14 days).
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. Component values are according to payroll cycle (Monthly, Weekly, Bi-Weekly, Semi-Monthly).
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: Payroll Settings
You can manage the employee custom fields to show in salary slips or not.
Step - 8: 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.