Pay Runs

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.

Before you run payroll, make sure that you have set up Zoho Payroll and added all your employees.

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.

Create Pay Run

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.

Summary Add Inputs Import Details Deduction Summary Journal Entry Create Pay Run Create Pay Run

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:

Initiate Selective Payment Record Selective Payment Record Pay Date

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.

Journal Entry

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.

Download options

To download the file, click More > Show Downloads > Download and choose a location to store the documents.

Download link

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:

Export Payroll Data TDS Report

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.

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 Payroll calculates the arrears using the employee’s date of joining and the company’s pay period.  Zoho Payroll 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 Payroll 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.

Note: This feature is only available in early access. Contact to get access for your organisation.

Processing New Joinee Arrears in Zoho Payroll

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 Payroll to calculate the correct salary and track the arrears.

You can select employees who have new joinee arrears in Zoho Payroll 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,

New Joinee Arrears

While processing payroll, the administrator 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 ,

New Joinee Arrears

Pro-tip:If there is an employee in a pay run for whom you don’t want to make a payment, you can exclude them from the current pay run and instead include their payment as arrears in the next pay run.

New Joinee Arrears

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

Pro-tip: If you’ve skipped a new joinee arrear it can be reverted by adding the skipped employee to the payroll.

Import New Joinee Arrear Details

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

Here’s how you can import them:

New Joinee Arrears

LOP Reversal

In Zoho Payroll, the process of reversing the Loss of Pay (LOP) deduction for an employee is referred to as LOP Reversal.

What is LOP?

LOP is deduction from an employee’s salary in case they are absent from work without prior approval or if they’ve exhausted their paid leaves.

How does LOP Reversal work?

When an employee takes unapproved leaves, you can apply the corresponding LOP deduction in Zoho Payroll. However, if the employee later provides a valid reason for their absence, you can reverse the LOP deduction in the upcoming months.

Note: This feature is only available in early access. Contact to get access for your organisation.

Here are three use cases for LOP reversal:

1) The employee’s absence was due to taking approved leave, which was granted after the unpaid leave of absence (LOP) was applied. If the leave is approved, the LOP can be reversed.

2) The cause for the employee’s absence was medical: A worker might have missed work because of an illness or another medical issue that was not previously covered by paid leave. The LOP deduction can be reversed if the employee subsequently submits medical certifications or other acceptable proof.

3) Oversight in payroll calculation: In some cases, the LOP deduction may have been made in error due to an oversight in payroll processing. If this is identified and corrected, the LOP reversal process can be initiated to ensure that the employee is paid the correct salary amount.

Overall, LOP reversal helps ensure that employees are paid accurately and fairly. It helps to avoid unnecessary deductions and promotes transparency and efficiency in payroll processing.

Reverse LOP in Zoho Payroll

Here’s how you can reverse LOP in Zoho Payroll:

Pro-tip: Click the dropdown below Employee Summary and select Employees with LOP to filter employees with LOP.

LOP Reversal LOP Reversal

Insight: The maximum number of days you can reverse is based on the LOP applied during that particular month.

The LOP will be reversed, and the employee will be compensated in the current payroll.

Pro-Tip: The LOP deducted in the past fiscal year can be reversed only at once along with the April pay run of the current financial year, whereas the deduction of LOP in a single pay run can be reversed over several months.

By following the above steps, you can quickly and easily reverse LOP deductions and ensure your payroll processing is transparent and efficient.

Import LOP Reversal Details

You can also import the LOP reversal details of employees in the Pay Run module. This feature will come in handy if you have to add LOP Reversal details in bulk. Here’s how you can import them:

LOP Reversal LOP Reversal

The file will be imported and the LOP reversal details will be mapped against each employee.