Pay run refers to the act of compensating your employees for the days they’ve worked in a month. Using Zoho Payroll, you can configure the payroll structure for your company and process pay runs for your employees effectively.
How to process a pay run?
Based on your pay schedule, you will receive a reminder for the pending pay runs. You can create a pay run from Home or Pay Runs module by clicking the Create Pay Run button.
You will be directed to a page which displays all the key information related to the pay run such as Payroll Cost, Payday, Net Pay, Taxes & Deductions Summary and Employee Summary.
- Click each employee name to add Loss of Pay (LOP) days, one-time earnings and one-time deductions.
- You can also import the LOP details for all employees in a CSV file instead of entering them one at a time. click Import/Export > LOP Details or Import/Export > One-time Earnings and Deductions. You can also export the payroll details from here.
- If an employee doesn’t belong to the pay run, you can remove them by clicking the … icon next to the employee and selecting Skip from Payroll.
- Add notes by clicking the Comments button in the top-right corner of the Pay Runs page..
- Click the Taxes and Deductions tab to view a summary of taxes paid and contributions made.
- If you wish to see the TDS details for employees, you can select the Overflow icon (…) next to the employee name and click View TDS Sheet.
- Once you’ve added all the inputs, click the Submit and Approve button in the top-right corner of the page. If the user doesn’t have approval permission, they can simply submit the pay run. It will be approved or rejected post review by a user with approval access.
- If you have enabled Zoho Books integration, you can choose to post the journal entry for the payroll transaction in Books. The transaction will be recorded under the account you had configured while setting up the integration.
- After the pay run is approved, you can record payment on or after the payday.
- Click Download Bank Advice to download the bank advice, which helps you manually transfer the salaries to your employees’ bank accounts.
- For direct-deposit enabled employees, you would have to initiate payment on the payday.
- If you’ve made mistakes in an approved pay run, you can reject the approval and recall the pay run, provided you haven’t recorded payment for it.
The journal entry posted in Zoho Books will be reversed and the transactions will be removed from the respective accounts.
How to make selective payments?
Pay Runs module supports making payments for selective employees. You can make payments for a few of your employees on a certain date and pay the rest of your employees later.
To pay a few selected employees:
- Go to the Pay Runs module.
- Click Create Pay Run.
- Once you’ve added deductions, LOP details, etc., click Submit and Approve.
- In the approved pay run, check the boxes next to the name of the employees’ for whom you want to make the payment. Make sure that these employees have the same payment mode.
- Choose Initiate Payment for selected employees with Direct Deposit payment mode and record the same.
- Choose Record Payment for selected employees with Cheque and Bank Transfer payment mode.
- You can select the payment date and click Confirm.
The selected employees will be marked as paid. You can make payments to the other employees on a different date and record the payment. Journal entries corresponding to each payment will be posted automatically in Zoho Books along with the payment date.
How to download payroll documents?
Once you’ve processed the payroll, you can download all the individual payslips and the TDS worksheets involved in that payroll.
To download the payroll documents, click More > Download all Payslips or Download all TDS Worksheets. The link to initiate download will be generated and you will be notified once it is ready.
To download the file, click More > Show Downloads > Download and choose a location to store the documents.
If you make any changes to the pay run after you download these documents, the existing link will expire and you will not be able to use it. You need to re-initiate the file generation and then download the modified pay run details.
You can also download the consolidated TDS worksheet containing the TDS details of all your employees to cross-reference your TDS payments or accounts.
To download the consolidated TDS report:
- Go to the Pay Runs module.
- Run the payroll for the month.
- In the payroll overview page, click Export Data in the top right corner of the employee summary and select Payroll Data.
- From the dropdown, select TDS Worksheet Report and click Export.
The link to initiate download will be generated and you will be notified once it is ready. You can download the document from More > Show Downloads > Download.
Note: Changes made to the pay run after the document is generated will not be reflected in the document. You will have to re-initiate the file generation and download it again.