H R E N T R I E S

Monthly Payroll Processing Inputs

This document outlines the process to be followed in generating the necessary input reports for your monthly Payroll processing.

In this writeup, we will cover everything you need to know about preparing various inputs needed to process your monthly payroll within hrEntries.

1.0. PayRun Process Inputs:

For a typical monthly PayRun Process, the following set of inputs are required:

  1. New Joinees/Exits: This covers all employees joining and exiting the organization. 
  2. Attendance details: This covers all the loss of pay to be considered while processing.
  3. Adhoc Adjustments: This covers all adjustments (earnings and deductions) to be handled outside of the payrun process.
  4. Arrears: This covers all arrears to be given to employees.
  5. Loan Settlements: This covers all loans and advances to be recovered for applicable employees.
  6. Incentives: This covers all incentives based on target achievements.
  7. Variable Payout: This covers all retained salary components that are disbursed at periodic intervals.
  8. Leave Encashments: This covers details of all leave encashments that are paid out as required.

In hrEntries, all these inputs are provided as summary reports. Sections below describe how to prepare these inputs for processing. 

1.1. New Joinees/Exits:

There are two ways of providing these inputs: 

a. In bulk through excel import (Settings -> Load Employees)

b. Individually through the UI (Employees -> New Employee) 

In each case, certain fields are mandatorily required as listed below. For bulk uploads using excel, please download the latest version of the template from the application itself. The template is available for download on the same page as the upload functionality (please refer the image below).

Settings -> Load Employees

In addition to the mandatory fields listed below, additional data elements (such as bank account details, unified account number/Aadhaar/PAN etc.) can also be provided through the excel file or through the UI. In case additional fields are missing while the new employee data is being created, the employee records can be incrementally updated with various data elements as and when they become available.

  • New Joinees: If you are creating new Employee masters through the UI, then please fill in all required fields as marked on the screens. On the other hand, if you are planning to do a bulk import of all New Employees data, the following fields are required to be filled mandatorily in the provided Excel templates (Settings -> Load Employees):
  1. EmployeeID
  2. UserName (should be Unique across the organization)
  3. Default Password 
  4. Enabled (TRUE/FALSE) (Default: TRUE)
  5. Account Expired (TRUE/FALSE) (Default: FALSE)
  6. Account Locked (TRUE/FALSE) (Default: FALSE)
  7. Password Expired (TRUE/FALSE) (Default: FALSE)
  8. Roles (comma separated array containing the roles: ROLE_EMPLOYEE,  ROLE_MANAGER, ROLE_ADMINISTRATOR etc) (Default: ROLE_EMPLOYEE)
  9. Locked (Locked/UnLocked) (Default: UnLocked)
  10. First Name
  11. Last Name
  12. Father Or Husbands Name
  13. isFathersName (TRUE/FALSE) (Default: TRUE)
  14. Gender (Male/Female)
  15. Marital Status (Default: UnMarried)
  16. Is Disabled (TRUE/FALSE) (Default: FALSE)
  17. Is International Worker (TRUE/FALSE) (Default: FALSE)
  18. Date of Joining 
  19. Date of Birth 
  20. Employment Status (ACTIVE/INACTIVE) (Default: ACTIVE)
  21. Employment Type (Permanent, Consultant, Contract, Intern)  (Default: Permanent
  22. Is Eligible for ESI India (TRUE/FALSE) (Default: TRUE)
  23. Is Eligible for EPF India (TRUE/FALSE) (Default: TRUE)
  24. Is Eligible for EPS India (TRUE/FALSE) (Default: TRUE)
  25. Is Eligible for EDLI India (TRUE/FALSE) (Default: TRUE)
  26. Is Director With Substantial Interest (TRUE/FALSE) (Default: FALSE)
  27. ESIGross Less than Ceiling (TRUE/FALSE) (Default: FALSE)
  28. Employee EPF Contribution Percentage (12)
  29. Employee EPF Contribution Level (Default: Statutorily Mandated Level (12% of EPF Gross)
  30. Employer EPF Contribution Level (Default: Match Employee EPF Contribution)
  31. Is Metro Location (TRUE/FALSE) (Default: FALSE)
  32. Professional Tax Jurisdiction (Choose appropriate state)
  33. LWF Tax Jurisdiction (Choose appropriate state)
  34. Is Eligible for LWF (TRUE/FALSE) (Default: TRUE)
  35. Is Professional Tax Applicable (TRUE/FALSE) (Default: TRUE) 

You can also use the bulk upload facility, to incrementally update various attributes on the Employee Masters. For example, if you wish to update the relieving dates/last working dates for all exiting employees in bulk every month, you can do the same by providing the following fields for such employees in the template excel file:

  1. UserName
  2. EmployeeID
  3. Date Of Leaving
  4. Employment status (TRUE/FALSE): If you want the salary of the employee to be processed during the month of exit itself, choose True, else choose False. If chosen value is FALSE, the employee’s salary has to be settled as part of the full and final settlement process.

1.2. Attendance Details:

Attendance details required for payroll processing are primarily the number of days of loss of pay for various employees during the relevant pay period. The Loss of Pay (LOP) data will be inferred based on the leave transactions recorded in the system.

For processing your monthly payroll, you need to provide an Attendance Summary Report as input (incase you have any loss of pay for any of the employees). There are two ways of preparing this input Attendance Summary Report needed for payroll processing as listed below:

1.     Creating an Attendance Summary Report through the UI with Manual LOP inputs: A new Attendance Summary Report can be created for the specified period and Loss of Pay (LOP) details can be specified for relevant employees in the report. This a manual process of specifying only the Loss of Pay (LOP) details for relevant employees for the concerned month. This can be done from: PAYRUN -> ATTENDANCE SUMMARY -> NEW SUMMARY REPORT 

2.     Generate Attendance Summary Report which will determine the LOP data based on leave transactions available in the system. If you have enabled Leave management capability, these transactions are automatically generated when Leaves are applied for by employees and the same get approved by the respective approving managers. This can be done from:                     PAYRUN->ATTENDANCE SUMMARY->GENERATE SUMMARY REPORT

In case, you have not enabled Leave management within hrEntries, there is another way to import processed leave summary data using the timesheets import template provided. You can fill in all the relevant leave summary details for all employees in the organization along with their respective time sheet specific inputs and import the same in bulk. This will automatically generate all the necessary leave transactions. Once the leave transactions are generated, you can go ahead and generate the Attendance Summary Report as specified above.

TimeSheet data using the provided template can be imported from:

SETTINGS -> LOAD TIMESHEETS

The required template file for TimeSheets is available on the same upload page as well.

Sample Generated Attendance Summary Report

1.3. Adhoc Adjustments:

This set of inputs comprise all changes that need to be considered while executing payrun outside of the pre-defined salary structures. For example, items like one off bonus, one off deductions, business expense reimbursements etc. are ideally loaded through Adhoc adjustments. There are two ways of generating Adhoc Adjustments summary report needed for payroll processing:

1.      Creating an Adjustments Summary Report through the UI: In this approach, you will be creating a new Adjustment Summary Report and specifying the required adjustments by various payheads for the relevant employees. This approach is suitable if the number of such adjustments are limited. In case you have a large number of such adjustment transactions across many employees in the organization, an easier approach is to upload the adjustments data in bulk using the provided template. A new Adjustments Summary Report can be created from:

     PAYRUN->ADHOC ADJUSTMENTS->NEW ADJUSTMENT

2. You can import the adjustments data in bulk from: 

PAYRUN->ADHOC ADJUSTMENTS->IMPORT ADJUSTMENTS  

1.4. Arrears:

Any arrears to be processed from previous periods can be specified through the Arrears Summary Report. The arrears inputs are specified in terms of days of pay for a specified period. Arrears are computed on different basis as listed below. You can choose the relevant calculation basis as is applicable in your case:

  1. Arrears on Current Salary Structure for the given number of days for the specified period. This is applicable when there is no difference in current salary and the salary for the specified Arrears period. 
  2. Arrears on Relevant Period Salary as of the the specific period. This is applicable when there has been a salary revision between the period for which Arrears are to be paid for and the period in which the Arrears will be paid out. For example, if the arrears are to be computed for compensation that was previously missed out, say for the period of April 2019 and the same is being paid out in July 2019 with a revision already having been done anytime after April (May or June), you can specify Arrears based on the previously existing Salary Structure as of April 2019. 
  3. Arrears on the difference of current salary and Relevant Period Salary existing as of the specific period. This is applicable when there is a revision of salary retrospectively. For example, in case the salary was revised on the 1st of June 2019 but is retrospectively effective from the 1st of April 2019. In such a case, you would need to compute Arrears on the difference of the revised salary and the salary that was already paid for the months of April and May. 

 The arrear inputs can be specified in two ways, either manually or via bulk import using the provided template. A new Arrears Summary Report can be created manually from: PAYRUN -> ARREARS SUMMARY -> NEW SUMMARY REPORT.

You can import the arrears data in bulk from: PAYRUN -> ARREARS SUMMARY -> IMPORT ARREARS 

PayRun -> Arrears Summary -> New Summary Report

1.5. Loan Settlements:

In case there are any loans or advances that have been given to employees and the same needs to be recovered from the monthly payroll, such inputs can be specified using the Loan Settlements Summary Reports. 

When the loans or advances issued to employees get recorded, the system will automatically generate the listing of all monthly deductions for the entire loan tenure. The monthly recoverable amount will be computed based on the interest and tenure specified. As part of the monthly Payroll process, in case there are loan related settlements to be taken into consideration within the payroll, you can generate the Loan Settlement Reports. The system will automatically determine the deductibles for the relevant employees and include the same in the Loan Settlement Report. You can override these numbers in case required for whatever reasons as required by modifying the Loan Settlement Report. Once the Loan Settlement Report has been finalized, you can use the same as part of your Payroll process. 

A new Loans Settlements Summary Report can be created from: PAYRUN -> LOAN SETTLEMENTS -> NEW SETTLEMENT REPORT.

1.6. Incentives:

Incentives are applicable for employees who have part of their compensation tied to performance and target attainments. For example, sales teams usually have a part of their compensation tied to the sales revenues attained. Similarly, in case of manufacturing companies, a part of the compensation might be tied to production targets. 

As part of preparing inputs for the monthly payroll process, you can create a new Incentives Summary Report from: PAYRUN -> INCENTIVES SUMMARY -> NEW SUMMARY REPORT. 

Inputs needed for this report are the employee specific target and attainment numbers. These inputs can be either revenue attainments or the units produced/manufactured/sold. Based on the incentive plans defined and how the various employees have been mapped to various incentive plans, depending on the target/attainment inputs provided, the system will automatically compute the payouts that the employees are eligible for. The Incentives Summary Report will be used as part of the periodic payroll process. 

PayRun -> Incentives Summary -> New Summary Report

1.7. Variable Payouts:

Variable Pay is applicable for organizations that follow a practice of withholding a portion of the employee’s salary under any Payhead(s) and pay out the same on a periodic basis. The quantum of the payout may be based on multiple parameters such as overall performance of the organization, department, division and the individual concerned. Typically, in such organizations, the compensation structure agreed with the employees will have one or more payheads which are classified as Variable Pay and the corresponding payheads need to be classified as Withholding payheads in the system.

If your organization follows such a philosophy of including variable pay as part of the salary structure, you will need to use the Variable Payouts Summary Report for the months when you will make the actual payouts under Variable Pay for your employees. For other periods, i.e. pay periods when Variable Payout is not done, you need not specify any inputs under Variable Pay Section for your monthly PayRun processing. 

You can generate new Variable Payout Summary Report from: PAYRUN -> VARIABLE PAYOUTS -> GENERATE SUMMARY REPORT. 

Once the Variable Payout Summary report is generated, you will be able to allocate payouts based on your specific criteria. After all the allocations are completed, the Variable Payout Summary report is now ready to be used as part of your Payroll process. 

The image below, the organization had withheld earnings under the Payhead Bonus, for the period from July to Sept 2019. The same was to be paid out during the month of October 2019, with appropriate allocations (in this case 100%). 

PayRun -> Variable Payouts -> Generate Summary Report

1.8. Leave Encashments:

Leave encashments are done typically at the end of the financial year, in the month of March, for employees who in continued employment with the organization. On the other hand, leave encashments are also done on a periodic basis for employees who have already exited the organization as part their Full & Final Settlements. In both the cases, the essential inputs here are the number of days of leave that are encashable for each of the employees for the given Financial Year. The number of days of leave to be encashed depends on the leave policies of the organization.

Once you have the leave tracking enabled in hrEntries, it is a breeze to generate the leave encashment reports at any point in time. As all leave transactions are already recorded in the system, you can create a new Leave Encashment Report in one of two ways listed below:

  1.  Manual Creation: In this case you will be manually specifying the number of days of encashable leaves for each of the relevant employees. This will typically be the case when your leave transaction data is maintained outside the system. The new Leave Encashment Summary Report can be created from: PAYRUN -> LEAVE ENCASHMENTS -> NEW SUMMARY REPORT. 
  2. Auto Generation: In this case, the system will auto populate the eligible number of encashable days for each of the employees, based on your predefined leave policies and the leaves that employees have taken during the period. The new Leave Encashment Summary Report can be generated from: PAYRUN -> LEAVE ENCASHMENTS -> GENERATE SUMMARY REPORT.  
PayRun -> Leave Encashments -> New Summary Report
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