Salary Components

The salary of employees may comprise of several different earnings, deductions, corrections and benefits. In this section of settings, you can:

Earnings

Earnings refer to any type of compensation or income an employee receives. Some of the common earning components include Basic Pay, Housing, Cost of Living, and Child Social Allowances.

Add an Earning

To add a new earning:

• Go to Settings and select Salary Components.
• Click Add Component and select Earning.

• Select an Earning Type. If none of the options fit your requirements, choose Custom Allowance.
• Enter the name of the earning in English and Arabic.
• Select the Pay Type.
  • Fixed Pay: A fixed amount will be paid each month.
  • Variable Pay: You can enter the amount for a month while running payroll.
• Choose whether you want to calculate this earning on a pro-rata basis. Pro-rata basis means the employee will be compensated based on the number of days they’ve worked.
• Select the Calculation Type and Amount/Percentage.

• Select the Mark this as Active option.

• Click Save.

Scheduled Earnings

One Time Scheduled Earning is a feature 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.

• Scheduling earning
• Update scheduled earnings while processing a payroll
• Scheduled earnings during full and final settlement payroll

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.

Add Scheduled Earnings

You can schedule earnings for your employees by marking earnings as a scheduled earning.

To schedule earnings for your employees:

• Go to Settings and click Salary Components.
• Select an earning with the Calculation Type as Variable.
• Select This is a scheduled earning.

• Click Save.

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.

Assign Scheduled Earnings to Employees

Here’s how you can assign a scheduled earning to an employee:

• Go to the Employees module and select an employee.
• Switch to the Salary Details tab.
• Click Add in the top right and select Scheduled Earning.

• Select an earning.

• Enter the annual amount and payout month.

• Click Save.

Once added, you will be able to edit or delete the employee’s scheduled earning under the Unpaid Scheduled Earnings section.

Import Scheduled Earnings

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

• Go to the Employees module.
• Click the More icon on the top right corner and click Import Data.

• Select Employee Scheduled Earnings as the import type.
• Click Proceed.

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.

• Select how you want to handle duplicate entries.
• Map the import file fields with the fields in Zoho Payroll and click Import.

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

Update Scheduled Earnings While Processing a Payroll

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:

• Go to the Pay Runs module.
• Click View Details next to the payroll.
• Select the employee for whom you would like to update the scheduled earning details.
• Update the amount for the scheduled earning under Earnings section.

• Click Save.

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

Scheduled Earnings in Full and Final Settlements

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.

Benefits

You can add the benefit plans that promote the welfare of your employees such as medical benefits and other benefits.

Add a Benefit

To add a new benefit:

• Go to Settings and click Salary Components.
• Click Add Component and select Benefit.

• Select a Benefit Plan.
• Enter the name to be displayed on employee payslips for this benefit plan.
• Select the Mark this as Active option. 
• Click Save.

You can assign this benefit to your employees from the employee details page or while processing a payroll.

Deduction

Deductions refer to amounts subtracted from an employee’s gross salary to arrive at the final take-home pay. These deductions can be for any fines, damages, retirement contributions, garnishments, or other employee-related expenses.

Add a Deduction

To add a new deduction:

• Go to Settings and select Salary Components.
• Click Add Component and select Deduction.

• Enter the name of the deduction.
• Select whether it is a one-time or a recurring deduction.
• Mark the component as active.
• Click Save.

You can assign this deduction to your employees from the employee details page or while processing a payroll.

Correction

Once you assign an earning to employees, you won’t be able to edit it. In such cases, you can create a one-time correction component. This helps make corrections to earning components.

Add a Correction

To add a correction:

• Go to Settings and click Salary Components.
• Click Add Component and select Correction.

• Select the earning type you want to correct.
• Enter a name for the correction.
• Select the Mark this as Active option.
• Click Save.

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

Edit Salary Components

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 a salary component:

• Go to Settings and select Salary Components.
• Click the More icon next to the salary component you want to edit.
• Make the necessary changes.
• Click Save.

The changes will be applicable only to the new employees.