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Digital HR - User Manual
  • Welcome to DigitalHR!
  • Navigating the dashboard
  • Getting Started
    • Complete your company profile
    • Language + RTL (NEW FEATURE)
    • Dark Mode/Light Mode (NEW FEATURE)
    • Create/Update Branches
    • Create/Update Departments
    • Create/Update Posts
    • Create/Edit Shifts (NEW FEATURE)
      • Setting Up Check-In and Check-Out Rules
  • Settings
    • Roles and Permission
    • General Settings (NEW SETTINGS)
    • App Settings
    • Notification Log
    • Payment Currency Setting
    • Feature Control
  • Attendance Methods
    • Adding Router MAC ID
    • Creating QR Codes
    • Adding NFC ID
  • Employee Management
    • Add Employees
    • Edit/Delete Employees
    • Change Password
    • Force Logout
    • Logout Requests
  • Leave Management
    • Create Leave Types
    • Managing Leave Requests
    • Time Leave
    • Leave Quota
    • Leave Hierarchy
      • Create Leave Hierarchy
  • Attendance Records
    • Daily Attendance View
    • Monthly Attendance Record
    • Adding Missing Attendance Records:
    • Location Check
    • Export day wise csv report or Month Wise Individual Report
  • Project Management
    • Client Management
    • Creating Projects
    • Task Management
    • Summary
  • Payroll
    • Adding Salary
    • Salary Increment
    • Edit Salary
    • Salary Revision History
    • Payroll Settings
      • Salary components
      • Salary Group
      • Salary TDS
      • Overtime
      • Undertime
      • Payment Method
      • Advance Salary
    • Generate Payroll
    • Payroll (Salary Slip) Options
      • View Payslips
      • Edit Payslip
      • Mark Payslips as Paid
      • Payslip Sample
    • TADA
  • Notice
  • Team Meetings
  • Events
  • Training Management
  • HR Admin Setup
    • Awards
      • Award Types
      • Awards
    • Termination
    • Resignation
    • Warning
    • Complaint
    • Promotion
    • Transfer
    • Holidays
      • Adding Holidays
      • Edit/Delete Holidays
  • Asset Management
  • Award Management
    • Awards Type
    • Assign/Create Awards
    • Display No of awards in mobile application
  • Content Management
  • Support
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Payroll

Payroll is the process by which employees are compensated for their work. It involves calculating, distributing, and managing employees' wages and salaries, as well as handling various related tasks such as tax deductions, benefits management, and compliance with legal and regulatory requirements.

Key Components of Payroll

  1. Employee Earnings:

    • Basic Salary: The base amount an employee earns before any additions or deductions.

    • Bonuses and Commissions: Additional earnings based on performance, sales, or meeting specific targets.

    • Allowances: Extra payments for specific needs, such as housing, transportation, or meals.

    • Overtime Pay: Compensation for hours worked beyond the standard work schedule.

  2. Deductions:

    • Taxes: Federal, state, and local taxes that must be withheld from employees' pay.

    • Benefits: Contributions to benefits such as health insurance, retirement plans, and other employee benefits.

    • Other Deductions: This can include items like loan repayments, union dues, and garnishments.

  3. Net Pay:

    • The amount an employee takes home after all deductions are made. Net pay is the actual paycheck amount.

Payroll Process Steps

  1. Gather Employee Information:

    • Collect and maintain accurate employee details, including salary information, tax status, and benefits enrollment.

  2. Track Working Hours:

    • Record the hours worked by employees, including regular hours, overtime, and any leave taken.

  3. Calculate Earnings and Deductions:

    • Compute gross earnings based on hours worked and salary rate.

    • Calculate deductions for taxes, benefits, and other withholdings.

  4. Generate Payslips:

    • Create detailed payslips that show earnings, deductions, and net pay for each employee.

  5. Distribute Payments:

    • Disburse payments to employees via direct deposit, checks, or other agreed methods.

  6. Compliance and Reporting:

    • Ensure compliance with all relevant tax laws and employment regulations.

    • Prepare and submit necessary payroll reports and tax filings.

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Last updated 11 months ago