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.

Employee Exit

If an employee exits from your organisation, whether it is due to termination by the employer, resignation, death, or due to some disabilities, you’ll have to Initiate Exit Process for that employee in Zoho Payroll.

Note: It is recommended that you collect the POI (Proof Of investments) before you initiate the exit process.

To initiate exit process:

Initiate Exit Process Exit Details
Field Description
Last Working Day Enter the last working day of the employee.
Reason for Exit Reason the employee is leaving the organisation.
Personal Email Address The employee’s personal email address in which you’ll be sending the full and final settlement payslip, TDS sheet and Form 16.
Notes Internal comment for initiating the exit process.

Process Final Settlement Payroll

Once you’ve entered the Exit details of the employee, you’ll be redirected to the Final Settlement Payroll page, where you can:

Final Settlement Payroll Add Deduction Notice Pay

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

Record Payment

Filter Exited Employees

You can filter exited employees using the Exited Employees filter in the Employees page. To do that:

Filter Exited Employees

You can also filter employees based on their reason for exit. Here’s how:

Filter by Reason

Employee Exit for Organisations Integrated With Zoho People

People Integration

Note: By default, the data gets synced every 24 hours.

Click Instant Sync

On the right side of your Home page, a notification will be shown regarding the exit of the employee along with the Exit Process button under To Do Tasks.

To Do Tasks

Revert Exit Process

There might be cases where you might rehire an employee. In such cases, you can revert the exit process. Here’s how:

Filter Exited Employees Select Revert Exit Process Revert Exit Process

Other information of the employee will be populated automatically as per the information entered earlier. You can edit those details if needed.

Rehire Employees

The Rehire Employee feature in Zoho Payroll allows you to rehire a previously terminated employee easily. If the employee had worked at your organisation in the previous financial year, Zoho Payroll will automatically fetch their details for this financial year when they are rehired.

Note: This feature is only available in early access. Reach out to support@zohopayroll.com and we’ll enable it for you.

Scenario: The Mechanical Troupe company has recently received new funding, and they now have the resources to rehire several employees who were let go during the recession. One of these employees is Shakir, who worked at the company for 6 months before being terminated. The HR department decides to use the Rehire Employee feature in Zoho Payroll to bring Shakir back.

Once the HR department rehires Shakir, all his employee details from the last financial year will be available in Zoho Payroll. They need not enter the employee details manually.

Points to note before you rehire an employee:

How Previous Employment Details Will Be Handled in Zoho Payroll

Here’s some details you would want to know about when you rehire an employee:

Data Handling
Tax If the employee is terminated and rehired in the same fiscal year, their previous income details will be included in the current payslip and TDS. The previous salary will be added to the Gross Earnings section in TDS.
Investment Declaration If the employee submitted their proof of investment during their final settlement, their investment declaration will be retained when they are rehired. Otherwise, their investment declaration will be cleared for the fiscal year.
Proof of Investments (POI) Proof of investments will be retained for rehired employees.
Form 16 Form 16 will be issued for rehired employees in the fiscal year. Previous salary details will be included in gross salary.
Form 24Q For rehired employees, a single line item will be added in Form 24 Q to declare salary, exemptions, taxes, etc., for the fiscal year.

Zoho Payroll has specific procedures for handling employee rehires, depending on the employee’s job history.

Case 1 - Managing Payroll for Rehired Employees with No Interim Employment: Let’s assume, your employee worked in your company for two years before resigning from his position. After six months of being unemployed, he was rehired by your company. Zoho Payroll needs to accurately calculate the employee’s income details for the current financial year, taking into account their previous employment in your company.

Since the employee did not have any interim employment between leaving and returning to your company, Zoho Payroll will only consider their previous income details from your company.

Case 2 - Managing Payroll for Rehired Employees with Previous Employment: If an employee leaves your company to join Company B and later returns to your company within the same financial year, Zoho Payroll will include their previous income details from both your company and Company B in the current payslip and TDS. To ensure accuracy, you must enter the income details from Company B when rehiring the employee.

Case 3 - Navigating Multiple Employment History: If an employee leaves Company A to join your company, then later leaves your company to join Company C, and finally returns to your company within the same financial year, Zoho Payroll will include their previous income details from all three companies in the current payslip and TDS. To ensure accuracy, you must add the income details from both Company A and Company C and enter them as income details in Zoho Payroll when rehiring the employee.

Rehire Employees

You can rehire an employee or rehire multiple employees by importing them. Here’s how you can rehire an employee:

Rehire Employees

Note: The employee’s new Date of Joining (DOJ) should be after the employee termination month. For example, if the employee exited on June 21st, 2022, the new DOJ can be provided after July 1st, 2022.

Rehire Employees

After rehiring an employee, the employee’s basic, personal, and payment information will be retained. However, you need to provide the new salary and statutory information accordingly.

Pro-Tip: If the rehired employee worked at a different organisation this financial year, you can import their previous employment details. The employment details during their time in your organisation are already available in Zoho Payroll.

Import Rehired Employees

Here’s how you can import employees to Zoho Payroll:

Rehire Employees Rehire Employees

In conclusion, to rehire an employee in Zoho Payroll, you need to update the rehired employee’s previous employment information and add them back to the payroll. Make sure to communicate any changes or updates to the employee and ensure that all necessary paperwork is completed.

Rehire Employees with Zoho People Integration

If you have integrated Zoho Payroll with Zoho People, rehiring employees becomes even more streamlined. Once employees and their details have been fetched from Zoho People, you can easily rehire them.

This is particularly helpful when an employee has been terminated in Zoho People, their full and final settlement payroll has been processed in Zoho Payroll, and then they are rehired on a future date, marked as active again in Zoho People.

Zoho People uses the previous employment details already available in Zoho Payroll, making it efficient and accurate.

Here’s how the rehiring process works with Zoho People integration:

Rehire Employees Rehire Employees Rehire Employees

The latest details of the synced employees will be available in Zoho Payroll when you perform click Instant Sync. However, the profile of the employee will be incomplete. Complete all the details of the employee to rehire the employee successfully.

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.

More Actions

You can submit IT Declaration and POI on your employees’ behalf.