Types of Pay Runs

The Pay Runs module in Zoho ERP allows you to handle various payroll types efficiently based on your organization’s requirements.

You can process the following using Pay Runs:

• Regular Payroll: The standard and recurring process of paying employees based on your organisation’s pay schedule.
• One-Time Payment: Make payments to your employees outside of their regular monthly or periodic salaries.
• Off-Cycle Pay Run: Make payments outside the regular pay schedule for unique payments that don’t align with the standard payroll cycles.
• Full and Final Settlement Payroll: Process payroll for exited employees who were not compensated at the time of exit.
• Resettlement Payroll: Process additional payroll adjustments for employees after their full and final settlement has been completed.

Regular Payroll

A regular payroll refers to the standard and recurring process of paying salaries to your employees based on a recurring pay schedule. Processing a regular payroll involves several essential steps, including:

• Calculating the gross pay (total earnings before deductions) and net pay (earnings after taxes and deductions) for each employee
• Withholding the correct amount of taxes and other deductions
• Making payments to employees
• Maintaining accurate records for compliance and tax reporting requirements

Process Regular Payroll

To process regular payroll:

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• In the Run Payroll tab, click Create Pay Run. You’ll be redirected to the Regular Payroll page where key information related to the pay run such as Payroll Cost, Payday, Net Pay, Taxes & Deductions Summary, and Employee Summary will be displayed.
• In the Employee Summary tab, click each employee name to view their Base Days, Payable Days, Earnings, Deductions, and Net Pay.
• Click the More icon next to the employee to perform actions such as Skip from this payroll, Withhold Salary, and Revert Salary Withhold.
• Import the LOP details and one-time earnings and deductions for all employees in a CSV file instead of entering them one at a time. Click Import/Export and select LOP Details or One Time Deductions and Earnings.
• If you want to see the TDS details for employees, click the More icon next to the employee name and select View TDS Sheet.
• In the Taxes and Deductions tab, you can view a summary of taxes paid and contributions made.
• Add notes by clicking the Comments icon in the top-right corner.
• Once you’ve added all the inputs, click Submit for Approval to submit the pay run. It will be approved or rejected upon review by a user with approval access.
• If you have permissions to approve the pay run yourself, click Submit and Approve and confirm.

Reject Approval

If mistakes were made in an approved pay run, you can reject the approval and recall the pay run.

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• In the Run Payroll tab, click View Details & Pay next to the pay run.
• Click the More icon in the top right corner and select Reject Approval.
• Enter the reason for rejecting the approval and click Proceed.

Record / Initiate Payment

After the pay run is approved, you can record or initiate payment based on the payment method of your employees.

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• In the Run Payroll tab, click View Details & Pay next to the pay run.
• For employees with payment method Cheque or Bank Transfer, click Record Payment in the top right corner.
• For employees with Direct Deposit, click Initiate Payment in the top right corner.
• Select the Payment Date.
• Optionally, check Send payslip notification to all employees if you want to send an in-app notification to employees in their portal.
• Click Confirm. The pay run will be marked as Paid.

Make Selective Payment

The Pay Runs module in Zoho ERP supports making payments for select employees. You can pay only the employees you select on one date and the rest later.

To pay selected employees:

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• In the Run Payroll tab, click View Details & Pay next to the pay run.
• In the Employee Summary tab, check the boxes next to the names of employees you want to pay now. Ensure those employees have the same payment mode.
• For Cheque or Bank Transfer, click Record Payment in the top right.
• For Direct Deposit, click Initiate Payment.
• Select the Payment Date.
• Optionally, check Send payslip notification to all employees.
• Click Confirm. The selected employees will be marked as Paid.
• You can then make payments to the remaining employees on a different date and record that payment.

New Joinee Arrears

New Joinee Arrear is the amount the employee has earned but has not yet been paid because they joined the company right after the pay run has been processed for a given pay period.

When the employer marks an employee as a New Joinee, Zoho ERP calculates the arrears using the employee’s date of joining and the company’s pay period.  Zoho ERP takes into account the number of days a new employee has worked and calculates their salary or wages accordingly. This amount is then added to the first regular payroll of the new employee.

For example, if an employee joins a company on the 15th of the month, and the pay period is from the 1st to the 30th of the month, Zoho ERP will calculate the salary for the 15th to the 30th of the month as a new joinee arrear and add it to the first regular of the new employee.

Process New Joinee Arrears

When a new employee joins the organization, their compensation package might take time to finalise. The HR or payroll administrator can update this information in Zoho ERP to calculate the correct salary and track the arrears.

You can select employees who have new joinee arrears in Zoho ERP while:

1. Creating or editing an employee
2. Processing the pay run for an employee

To process new joinee arrears when you are adding a new employee or editing an employee,

• Click People on the left sidebar and select Employees.
• Click Add Employee in the top right corner or edit an existing employee.
• Select the Pay as arrears in the upcoming pay run option.
• Complete the employee profile and click Save.

While processing regular payrolls, you can check if any employees have new joinee arrears. The arrears will then be processed along with the the employee’s first pay run.

To process new joinee arrears when you are processing the pay run for an employee,

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• Click View Details next to the regular pay run you are processing.
• Click the More icon next to the employee for whom you are trying to process the new joinee arrear and select Skip from this payroll.
• Select Pay as arrears in the next pay run.
• Enter the reason for skipping the employee.
• Click Proceed.

The employee will be skipped for the current pay run and the arrears will be processed in the upcoming pay period.

Import New Joinee Arrear Details

You can import the new joinee arrear details if you have to add them in bulk.

Here’s how you can import them:

• Click People on the left sidebar and select Employees.
• Click the More icon in the top right corner and click Import Employees.
• Select Employee Basic Details or Employee Details as the import type.
• Upload the file containing the details in the format prescribed below.
• Select how you want to handle duplicate entries.
• Map the import file fields with the fields in Zoho ERP and click Import.

One Time Payments

While managing payroll for a company, there might be instances when you need to make payments to your employees outside of their regular monthly or periodic salaries. This could be for reasons like:

• A bonus for excellent performance
• Overtime pay for extra hours worked
• Commissions for meeting or exceeding sales targets
• Other types of incentive pay not part of the regular salary

To help you manage these occasional one-time payments, Zoho ERP offers a feature called One Time Payout. This helps you make special payments easily without mixing them up with the regular payroll cycle.

Create a One Time Payment

To create a one time payment:

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• Click Create Pay Run in the top right corner and select One Time Payout from the dropdown. {index=2}
• Select Bonus (or another applicable component) as the One Time Component.
• Choose when you would like to pay.
• Click Save and Continue.
• Add or import the employees for whom you want to process the one time payment.

Add Employees Individually

• Click Add Employee.
• Select the Employee.
• Enter the Amount.
• Click Save.

Repeat this process for each employee.

Import Employees

• Click Import Employees.
• Upload the file with the required details.
• Select how you want to handle duplicates and Character Encoding.
• Click Next.
• Map the import file fields with the fields in Zoho ERP and click Import. A one time payment in Draft status will be created.

Finalize the One Time Payment

• Once you’ve added or imported the employees, click Continue to Payroll in the top right corner to create a one time payment in Draft status.
• Click Submit and Approve in the top right corner to approve the pay run.
• Next, record the payment made to your employees.

Off-Cycle Payroll

Managing off-cycle payrolls is essential when you need to process payments outside the regular pay schedule. Off-cycle payroll lets you issue payments for special cases such as bonuses, stipends, arrears, incentives, or other non-regular payments.

Create Off-Cycle Pay Run

To create an off-cycle pay run:

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• In the Run Payroll tab, click Create Pay Run in the top right corner and select Off Cycle Pay Run.
• Select When would you like to pay (the pay date) and click Save.
• Add or import the employees for whom you want to process the off-cycle payroll.

Add Employees Individually

• Click Add Employee.
• Select the Employee.
• Enter the Amount.
• Click Save.

Import Employees

• Click Import Employees.
• Upload the file with the required details.
• Choose how duplicates and character encoding should be handled.
• Click Next.
• Map the import file fields with the corresponding fields and click Import.
  The off-cycle pay run will be created in Draft status.

Finalize and Approve

• Once employees are added or imported, click Continue to Payroll to create the off-cycle pay run in Draft status.
• Review and update earnings, deductions, or other payroll components as required.
• Click Submit and Approve to approve the pay run.
• After approval, record the payment once employees have been paid.

Full and Final Settlement Payroll

You can process final settlement payroll once you’ve initiated the exit process for your employees. Once you initaite the exit process process and proceed with the full and final settlement payroll, you can add or import other employees for whom you’ve initiated exit. This way, you can process full and final settlement for multiple employees.

Process Final Settlement Payroll

Once you’ve initiated the exit for an employee, you’ll be redirected to the Final Settlement Payroll page, where you can:

• Enter the Organisation’s Payable Days and Employee’s Payable Days for that particular month.
• Enter the LOP (Loss Of Pay) days, if any.
• Enter Additional Earnings for the employee if any. Additional earning is an earning other than the employee’s regular salary.
• If any amount has to be deducted from the employee’s salary, you can enter it under Deductions by clicking Add Deduction.
• You can enable notice pay by checking the option under Notice Pay for the employees who are in their notice period.
• If the organisation owes the employee, select Payable and if the employee owes the organisation, you can select Receivable.
• Enter the amount in the Payable Amount or Receivable Amount field.
• If you want to enter any note in the final settlement slip, you can add them under Notes.
• Click Save and Continue to proceed.
• In the following page, click Submit to proceed with the exit. If you’re a user who has approve access then click the Submit and Approve button.

After getting the pay run approved, you’ll have to record payment in the Pay Runs page. Here’s how:

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• Click View Details & Pay .
• Click Record Payment on the top right corner of the page.
• Select the payment date and check the Send payslip notification to exited employee option, if you want to send payslip notification to the employee.
• Click Confirm to record the payment.

Process Final Settlement For Multiple Employees At Once

If you’re looking to terminate multiple employees simultaneously, you have two methods to achieve this: importing data or manually adding employees to the final settlement payroll.

Method 1: Importing Data for Bulk Termination

• Click People on the left sidebar and select Employees.
• Click the More icon on the top right corner and select Import Data.
• Choose Employee Exit Details as the type of import.

• Ensure your bulk termination file aligns with the correct format.
• Click Next.
• Ensure that Zoho ERP Fields are correctly mapped with Import File Fields.
• Click Import.

After importing the file, review the details in the bulk and final settlement payroll and proceed with processing it.

Method 2: Manually Adding Employees to Bulk Final Settlement Payroll

• Click People on the left sidebar and select Employees.
• Select the employee for whom you want to initiate the exit.
• Click the More icon and select Initiate Exit process.
• Enter the exit details and select pay as per pay schedule as the option for when you want to settle the final pay.
• A final settlement payroll will be created.

To add other employees to the final settlement payroll:

• Initiate the exit process for each additional employee.
• Select pay as per pay schedule as the option.

Once done, these employees will be included in the final settlement payroll, which now becomes a bulk final settlement payroll.

With these steps, you can efficiently handle bulk termination and streamline the final payroll process for multiple employees.

Resettlement Payroll

In certain situations, employees may be terminated from their positions without receiving their due compensation. With the Resettlement Payroll feature in Zoho ERP, you can process payroll for terminated employees who were not compensated at the time of termination. These payments are handled separately from the regular payroll, ensuring accuracy and clarity. You can include eligible terminated employees directly in the resettlement payroll.

Initiate a Resettlement Payroll

To initiate a resettlement payroll:

• Go to Payroll on the left sidebar and navigate to Pay Run tab on the module bar on top.
• In the Run Payroll tab, click Create Pay Run in the top right corner and select Resettlement Payroll.
• Select When would you like to pay and click Save and Continue.
  You’ll be redirected to the Add Resettlement Payroll page, where all eligible terminated employees are listed.

Add Earnings and Deductions

To add earnings and deductions for terminated employees:

• On the Add Resettlement Payroll page, click Add Earnings / Deductions for an employee.
• Enter the applicable amounts for earnings and deductions.
  • Under Earnings, you can add components such as Bonus, Commission, Leave Encashment, and Gratuity.
  • Under Deductions, you can add components such as Salary Advance and Fines and Damages.
• Click Save.

After adding the required details, click Continue to Payroll to create the resettlement payroll in Draft status.

Finalize and Approve

• Review the draft resettlement payroll and click Submit and Approve to approve it.
• After approval, record or initiate payment for the terminated employees.