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Withhold and Release Salary

There may be instances where you need to withhold your employee’s salary and disburse it in the following month or later. Zoho SPend supports withholding of employees’ pay for a certain period using the Salary Withhold option in the Pay Runs module.

Withhold Salary

Salary withhold can be applied when you have:

  • New employees who’ve joined at the end of a month.
  • Employees who are serving the notice period.

Note: All the statutory components such as EPF, ESI, etc., will be calculated and deducted from the employee’s salary. Only the Net Pay will be withheld when you apply salary withhold.

To withhold an employee’s salary:

  • Go to Pay Runs under Payroll.
  • In the Run Payroll tab, click Create Pay Run. You’ll be redirected to the Regular Payroll page.
  • In the Employee Summary tab, click the More icon next to the employee whose salary you want to withhold.
  • Click Withhold Salary from the dropdown.
  • Enter the reason for withholding the salary and click Proceed.
  • Once you’ve added all the inputs, click Submit and Approve in the top-right corner.
  • After the pay run is approved, you can record payment on or after the payday.

Release Withheld Salary

Let’s say you want to release the withheld salary along with the following month’s salary. Here’s how you can do it:

  • Go to Pay Runs under Payroll.
  • In the Run Payroll tab, click Create Pay Run. You’ll be redirected to the Regular Payroll page.
  • In the Employee Summary tab, click the More icon next to the employee whose withhled salary you want to release.
  • Click Release Withheld Salary from the dropdown.
  • Select the months for which the salary needs to be released. Once selected, the total payable amount will be displayed.
  • Click Proceed. The withheld net pay will be released and added to the current month’s net pay.

You cannot release a previously withheld salary if the current month’s salary is put on hold.

Revert Salary Withhold

If you want to process a withheld salary in the same pay run, you will have to revert the salary withheld. Here’s how:

  • Go to Pay Runs under Payroll.
  • In the Run Payroll tab, click Create Pay Run. You’ll be redirected to the Regular Payroll page.
  • In the Employee Summary tab, click the More icon next to the employee whose withhled salary you want to revert.
  • Click Reverse Salary Withhold from the dropdown.
  • Click Yes in the pop-up to confirm your action. The employee’s salary will be processed in the current month’s pay run.
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