The Employees module in Zoho Payroll allows you to add and manage employees’ personal and salary details, assign deductions to them, upload their IT Declaration and so much more.

Let’s see how you can:

Add Employees

To add an employee in Zoho Payroll,

Adding a new employee consists of 4 steps:

STEP 1: The Basics

Enter the employee’s basic details like Name, Employee ID, Date of Joining, Work Email Address and so on.

The Basics
Field Description
Employee Name Enter your employee’s first and last names. Middle name is optional.
Employee ID Enter the employee’s unique employee ID.
Gender Enter your employee’s gender.
Date of Joining This is the day on which the employee started working for your organisation. For an existing employee, choose their original date of joining. If it is a new hire, you can choose a date in the future.
Designation Enter the employee’s designation in your organisation.
Director/Employee with substantial interest Enable this checkbox if the employee is a Director or is a beneficial owner of shares and owns at least 20% of the voting power. This helps us fill out Form 12BA for your employees.
Work Email Address The employee’s payslips are sent to this address. Also, employees will be able to log into their employee portal using this email address, if you enable it for them.
Department Enter or select the department under which the employee would be working.
Work Location Select which branch your employee works from, if your organisation has multiple work locations.
Enable Portal Access Choose whether you want to enable Employee Portal for this employee. The employee can access their details, payslips and investments from the portal.
Statutory Components Enable the statutory components that the employee is eligible for.

STEP 2: Salary Details

Enter the complete salary structure of your employee here.

Salary Details

STEP 3: Personal Info

In this step, you must enter the following personal details of the employee:

If you’ve enabled any custom fields, you can fill out that information in the Other Details section.

Click Save and Continue to move to the next step.

Note: All personal information about your employees will be encrypted and stored in our secure servers. Read our Security Policy.

Personal Info

STEP 4: Payment Info

Choose the payment method you would like to use to pay this employee.

Note: Direct Deposit will not be enabled by default. Please contact support@zohopayroll.com and we’ll enable it for you.

Payment Mode

Edit Employee

To update employee details such as mobile number, address or payment mode , you would have to edit the employee details.

To edit an employee:

Edit Employee

Delete Employee

If an employee is not a part of any current or completed pay runs, you can delete them from Zoho Payroll.

Note: The employee you want delete must not have any IT, POI, Perquisite, Claims details in Zoho Payroll or expenses in Zoho Expense associated with him/her.

Terminate Employee

When you decide to let an employee go, or when they resign, Zoho Payroll helps you compensate the terminated employee by initiating a termination payroll. Termination payroll process has to be initiated differently based on the Zoho People integration.

Case 1: Zoho Payroll is NOT integrated with Zoho People:

Terminate Employee

You will be taken to a Termination Payroll page where you need to:

Note: Gratuity will be calculated automatically once an employee completes 5 years. However, there is provision to override the amount if needed.

Termination Details

You can then Approve the termination payroll from the Pay Runs module before the final settlement date and record payment for the employee.

Note: Employee Termination should always be processed before the current month’s pay run.

Case 2: Zoho Payroll is integrated with Zoho People:

Employee Status Date of Exit Instant Sync

The Date of Exit in Zoho People will be considered as the Last Working Day for the employee in Zoho Payroll.

In the homepage, on the right side, you will find To Do Tasks. Here, you will be notified about the termination payroll.

To-do Tasks

Follow these steps to process the employee’s termination payroll.

Note: The termination payroll will be separate from the regular monthly pay runs.

More Actions

You can add pre-tax deductions, post-tax deductions, add perquisites, revise salary and submit IT Declaration and POI on your employees’ behalf.

Adding Deductions:


A pre-tax deduction is money taken out of the employee’s pay before income tax is calculated. As a result, they reduce the employee’s net taxable income and thereby reduce income tax. An example is deductions made towards schemes like National Pension Scheme (NPS) or Voluntary Provident Fund (VPF).

Disclaimer: Zoho Payroll does not deposit the deductions to the vendors on your behalf. You would have to deposit the deductions by yourself.

To associate a pre-tax deduction with an employee,

Pre-tax Deductions


A post-tax deduction is money taken out of your employees’ pay after income tax has been calculated. This does not affect the net taxable income of the employee. Purchases made in the company grocery store or food court are examples of post-tax deductions.

To associate a post-tax deduction with an employee,

Post-tax Deductions

Salary Revision

If your employee reaches a predefined goal or has shown continued excellent performance, you can reward them by giving them a pay hike. You can do this by revising their salary from the Employees module.

Revise Salary Salary Revision Payout Preferences

The salary revision will be applied in pay runs once it is approved from the Approvals module.