Payroll

Overview

Payroll management is a critical feature in our accounting software, enabling businesses to efficiently manage employee pay, benefits, deductions, and taxes. This feature provides a comprehensive framework for calculating employee income, including normal pay, overtime pay, benefits, deductions, and payroll taxes.

Who uses it: HR personnel, managers, and accountants use payroll management to track employee pay and manage payroll.

When to use it: Use payroll management to calculate employee pay, manage benefits, deductions, and payroll taxes.

Navigation Path

To access payroll management, follow these steps:

Log in to your accounting software.
Navigate to the main menu.
Click on "Employees".
Click on "Payroll Management".

Field Descriptions

Pay Grades

The pay grade form defines the common pay features applied to a group of employees. It outlines their benefits, such as leave days, salary, hourly rates, and allowances, as well as their obligations, such as deductions.

The following fields are associated with pay grades:

Field Name	Purpose	Expected Values	Defaults
Name	The name of the pay grade	Text	-
Pay Frequency	The frequency of pay	Weekly, Bi-Monthly, Monthly	-
Normal Pay	The normal monthly pay	Number	-
Hourly Rate	The hourly rate of pay	Number	-
Overtime Rate	The overtime rate of pay	Number	-
Monthly Leave Days	The number of leave days per month	Number	-
Maximum Leave Days	The maximum number of leave days	Number	-

The pay grade form contributes to the payslip by defining the employee's normal pay, overtime pay, and leave days.

Benefits

The benefit form defines simple objects that track a fixed benefit or allowance granted as part of a pay grade.

The following fields are associated with benefits:

Field Name	Purpose	Expected Values	Defaults
Name	The name of the benefit	Text	-
Amount	The amount of the benefit	Number	-
Currency	The currency of the benefit	Currency	-
Taxable	Whether the benefit is taxable	Yes/No	No

The benefit form contributes to the payslip by adding a benefit amount to the employee's gross pay.

Deductions

The deduction form defines deductions that are amounts taken from an employee's income.

The following fields are associated with deductions:

Field Name	Purpose	Expected Values	Defaults
Name	The name of the deduction	Text	-
Deduction Method	The method of deduction	Percentage, Fixed	-
Rate	The rate of deduction	Number	-
Fixed Amount	The fixed amount of deduction	Number	-
Currency	The currency of the deduction	Currency	-
Liability Account	The account for the deduction	Account	-

The deduction form contributes to the payslip by deducting a specified amount from the employee's gross pay.

Payroll Taxes

The payroll tax form defines the graduated taxes collected by the government.

The following fields are associated with payroll taxes:

Field Name	Purpose	Expected Values	Defaults
Name	The name of the payroll tax	Text	-
Paid By	Who pays the payroll tax	Employees, Employer, Both	-
Liability Account	The account for the payroll tax	Account	-

The payroll tax form contributes to the payslip by deducting a specified amount from the employee's gross pay.

Actions & Buttons

The following actions and buttons are available on the payroll management page:

Create Pay Grade Γ£ì∩╕Å: Creates a new pay grade.
Edit Pay Grade Γ£Å∩╕Å: Edits an existing pay grade.
Delete Pay Grade Γ¥î: Deletes a pay grade.
Run Payroll ≡ƒÆ╕: Runs payroll for a specified period.

Examples / Usage Notes

For example, let's say you want to create a new pay grade:

Navigate to the payroll management page.
Click on "Create Pay Grade".
Enter the pay grade information, such as name, pay frequency, and normal pay.