Payroll settings

HRStop lets you, as an admin, configure and manage your company's payroll settings, with various options to customize the system to your needs. Payroll is a vast area that needs to be configured properly, as it drives many of the most significant actions in a company, so the settings are divided into the following categories:

• Basic

• Statutory info

• Payroll info

• Payslips

• Attendance

• Features

---

Follow these steps to configure the payroll settings:

1. Navigate to Control Panel → Settings → Payroll. A new page opens, showing the fields to configure the settings in the Basic category.

2. Select the Financial Year. This is the period used for all accounting purposes. The starting month is when the company's financial year starts.

3. Select the Payroll Run Date. The system runs payroll on the selected date and generates payslips for the previous month.

4. Enable the Allow user to select dates in different month option to run payroll for dates falling in two months. Use it when the payroll dates span two months, e.g., Sep 25 to Oct 24.

5. Enable the Allow user to select attendance period in different month option to run payroll for attendance dates falling in two months. Use it when the attendance dates span two months, e.g., an attendance period of Sep 25 to Oct 24 for the Oct payroll.

6. Select the Payroll Start Date. This is the day when payroll is processed.

7. Select the LOP Start Date. LOPs for the selected month are calculated from this date.

8. Select the Pay day Calculation Method. Payroll is processed based on the selected method.

9. Select the Base Days/ Working Days Calculation Period (Attendance Period/ Payroll Period). Base days are the total number of days for which payroll/attendance is processed (usually the number of days in a month), while working days are the days on which the employee is actually present. The base days in a month and the employee's working days are based on the selected calculation period.

   1. To specify the payroll base days, select the Payroll based days option and enter the value.

   2. To deduct an employee's salary for days they are absent in the payroll period, select the Deduct Salary For Absent Days option.

   3. To allow payroll to run for inactive employees, select the Allow inactive employees in run payroll option.

10. Select the Full And Final Calculation Method (Based on days/ Based on Months).

11. Select the option for Round Off (Standard/ Floor/ Ceiling/ No Roundoff).

    1. To round off all pay component amounts in the payslip, select Round off every component in payslip.

    2. To round off the net salary in the payslip, select Round off net salary in payslip (and enter the round-off value).

    3. To round off PF in the payslip, select Round off PF.

    4. To round off ESIC in the payslip, select Round off ESIC.

12. Select the option for Tax Calculation (Calculate on components full value/ Calculate on components actual value).

    1. To club each primary component with its matching component appended with _Arrears, select Club primary and arrear components for income tax computation (e.g., Special Allowance_Arrears is clubbed with Special Allowance in income tax computation).

    2. To allow an LTA exemption greater than the LTA salary in income tax computation when the approved LTA amount in the investment declaration exceeds the LTA salary, select Allow LTA exemption more than the LTA salary in income tax computation.

13. Select the option for HRA Calculation (HRA Calculation monthly/ HRA calculation annually) (click more).

14. Enter the Bank Advice Format details (Customer id, Account number).

15. Select the option for Appraisal.

16. Select the Payroll Cycle.

17. Select the Hours Calculation Type.

18. Enter the Federal Tax Identification Number.

19. Enter the Default Hours Per Week.

20. Scroll down to the Statutory Info section and select the options for the PF, ESIC settings.