Salary Components

A salary comprises of several different earning, deduction and reimbursement components. In this section of settings, you can:

Note:  After payroll is set up for the components you’ve associated with one or more employees, you can only edit the Name and Amount/Percentage. The changes made to Amount/Percentage will apply only to new employees.


Add Earning

Any money that an employee receives as an income is termed as an earning. Some of the common earning components are Basic Pay, House Rent Allowance (HRA), and Dearness Allowance. 

All fixed earnings will be included as part of the CTC, will be considered as taxable, and will be shown in the payslip as per the Government norms.

FBP allows your employees to personalise their salary structure by choosing how much they want to receive under each component. This helps them reduce their income tax.

Add Earning

Note: You can add up to 5 earnings of the same component type for Basic, HRA, Conveyance Allowance, etc. You can add any number of earnings for Custom Allowance and Bonus. You cannot add multiple earnings for Leave Encashment, Notice Pay, Gratuity, and Fixed Allowance.


Schedule Earnings

One Time Scheduled Earning is a feature in Zoho Payroll that allows you to schedule variable pay salary components to be paid in any upcoming payrolls and the ones in draft status. With this feature, you can schedule one-time payments to be disbursed on a specific month, and Zoho Payroll will include these scheduled earnings in the pay run of the month you’ve specified.

For instance, you might have unique incentives or special bonuses that you want to pay to your employees, but these payments are separate from their regular monthly salaries. You can schedule these payments for various one-time incentives, bonuses, and unique variable payments. In Zoho Payroll, you can schedule earnings that are:

  1. Part of CTC
  2. Not part of CTC

Scenario 1: Ram, the head of the payroll team at Zylker India, welcomes Jaya, a new senior software developer, to the company. To show appreciation, the management offers Jaya a joining bonus. Using One Time Scheduled Earning in Zoho Payroll, Ram configures the joining bonus to be paid in the upcoming payroll run for Aisha. The bonus is included in the scheduled payout month, ensuring Jaya receives it promptly on her first payday, making her feel valued and motivated.

Scenario 2: During the end of the fiscal year at Zylker India, employees receive Variable Pay based on their performance. Using One Time Scheduled Earning, Ram easily configures variable pay to be paid in the upcoming payroll run for each eligible employee. This flexibility allows him to adjust the variable pay amount for individual employees. Zoho Payroll includes the scheduled variable pay accurately, motivating employees and rewarding their contributions effectively.

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

In this page…

You can schedule existing earnings by enabling the option for scheduling earnings. Alternatively, if you wish to create a new earning that needs to be scheduled, you can do so as well.

Scheduling earnings

To schedule earnings for your employees, you will have to mark the earnings in your salary components as a scheduled earning. Here’s how:

Schedule Earning

Pro-tip: Select the Make this earning a part of the employee’s salary structure option under Other Configurations if you want this scheduled earning to be a part of the salary structure of employees.

Schedule Earning

Note: You will not be able to schedule earnings for which the calculation type is fixed.

Once you mark an earning as scheduled, you will be able to schedule the earning to be paid on the month of your choice in the employees’ salary details page.

Scheduling earnings that are part of CTC

If the earning you are scheduling is a part of CTC or salary structure of an employee, you will be able to choose the preferred payout month in the employee’s salary details page. Here’s how:

Note: You will only be able to schedule the earning while editing the employee’s salary details, if you want to make the scheduled earning as a part of the CTC.

Schedule Earning

The scheduled earning will be processed in the payroll of the payout month.

Pro-tip: Similarly, during an employee’s salary revision, you can schedule earnings for a specific month without affecting any previously scheduled payments from past revisions.

Schedule Earning

Importing scheduled earnings that are part of CTC

When dealing with multiple scheduled earnings that are part of CTC, you can efficiently import them into Zoho Payroll. Here’s how:

Schedule Earning Schedule Earning

The file will be imported and the scheduled earning details will be mapped against each employee.

Scheduling earnings that are not part of CTC

Here’s how you can schedule earning that are not a part of CTC or salary structure of an employee. Here’s how:

Schedule Earning

Note: You can only select earnings that are not part of employees’ CTC or salary structure.

Schedule Earning

Pro-tip: You can select + New Scheduled Earning if you do not find the earning you’re looking for.

Schedule Earning Schedule Earning

Once you’ve added the earning to the employee’s salary details, you will be able to edit or delete it.

Schedule Earning

Importing scheduled earnings that are not part of CTC

When dealing with multiple scheduled earnings that are not part of CTC, you can efficiently import them into Zoho Payroll. Here’s how:

Schedule Earning

Upload the file containing the list of scheduled earnings that are not part of CTC. If you are unsure of the format, refer the image below.

Schedule Earning

The file will be imported and the scheduled earning details will be mapped against each employee.

Updating scheduled earnings while processing pay runs

Once you schedule the earning to be paid on the payroll you’ve specified, the scheduled earning will be processed on that payroll. However, if you would like to make any last minute changes to the scheduled earning details, you can make them while processing the payroll. Here’s how:

Schedule Earning

This updated amount will be paid to your employee as the One-Time scheduled earning.

Scheduled earnings during full and final settlement payroll

In the event of an employee’s termination, any unpaid scheduled earnings after the termination date will be automatically included in their full and final settlement payroll. You have the option to override or skip these payments as needed.


Add Deduction

Deduction is money that’s taken from your employees’ monthly pay. There are two types of deductions,


Pre-tax

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).

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

Add Pre-tax Deduction

You can associate this deduction to your employees from the employee details page or during pay runs.


Post-tax

A post-tax deduction is money deducted from your employees’ pay after the income tax has been calculated. This does not affect the net taxable income of the employee. For example, purchases made in the company grocery store or food court are post-tax deductions. 

Note: Post-tax deductions are one-time. They won’t recur in subsequent pay runs

Add Post-tax Deduction

You can associate this deduction to your employees from the employee details page or during pay runs.


Add Correction

Once you’ve associated recurring earnings like Basic, HRA, DA etc. to employees, you won’t be able to edit them. In such cases, you can create a one-time correction component to make corrections to an earning component.

Add Correction

You can now add these correction components if needed for specific employees while processing your monthly pay runs.


Edit Component

You can edit salary components, provided it isn’t involved in any pay runs. If you have pay runs in draft or approved status, delete them and then edit salary components.  To edit component:

The changes will be applicable only to the new employees.

Edit Earning
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