Add Employees

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Adding essential employee information to Zoho Payroll is crucial to processing payrolls, calculating net pay, and withholding federal and state tax amounts.

To add an employee:

1. Go to the Employees module.
2. Click Add Employee.
3. Provide the required details in each of the below steps:
   • Basic Details
   • Personal Details
   • Tax Details
   • Payment Details

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Basic Details

• Provide the employee’s basic details:

Field Name	Description
Employee Name	Enter the employee’s first name, middle name, and last name.
First Day of Work	Enter the employee’s date of joining.
Employee ID	Provide a unique identification number for the employee.
Designation	Select the employee’s job title. PRO TIP: You can add a new designation by clicking New Designation in the dropdown.
Work Email	Enter the employee’s official work email address. This email address will be used to: Send pay stubs and Form W-2 to the employee Allow the employee to access the Employee Portal, if enabled
Work Location	Select the location where the employee primarily works from. PRO TIP: You can add a new work location by clicking New Work Location in the dropdown. Learn more about Work Locations.

• Select the Enable Portal Access option if you want your employee to access your organization’s Employee Portal. Enabling this will send an email invite to the employee’s Work Email asking them to join the Employee Portal.

• Provide the employee’s compensation details:

Feild Name	Description
Employee Type	Select the employee’s compensation type: Hourly Salaried
Amount	Enter the compensation amount for your employee. For an hourly employee, enter the hourly wage you pay them. For a salaried employee, enter the sum you pay per year or hour.
Pay Period	Select if the entered compensation amount is for an hour or a year in case of a salaried employee.

• Click Save and Continue. You’ll be redirected to the employee’s Personal Details page.

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Personal Details

• Provide the employee’s personal details:

Field Name	Description
SSN	Enter your employee’s 9-digit Social Security Number (SSN).
Date of Birth	Enter your employee’s date of birth.
Mobile Number	Enter your employee’s mobile number.
Personal Email Address	Enter your employee’s personal email address.
Residential Address	Edit the employee’s home address. This must be a valid address within the state where your business operates.

• Click Save and Continue. You’ll be redirected to the employee’s Tax Details page.

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Tax Details

• Provide the employee’s federal tax details:

Field Name	Description
“2019 or Earlier” or “2020 or Later”	Choose 2019 or Earlier if: You have a valid Form W-4 submitted by the employee before 2020, AND The employee hasn’t submitted the latest version of Form W-4. Choose 2020 or Later for new hires (employees who join on or after 1 January 2020) and existing employees who submit the latest version of Form W-4.
Multiple Jobs or Spouse Works	Select this if the employee holds more than one job. You can find this information in Step 2 of the employee’s Form W-4.
Federal Filing Status	Select the employee’s federal filing status: Single or Married, filing separately Married filing jointly or Qualifying surviving spouse Head of Household Nonresident Alient You can find this information in Step 1(c) of the employee’s Form W-4.
Dependent Amount	Enter the total amount that the employee wants to claim for their dependents. You can find this information in Step 3 of the employee’s Form W-4.
Additional Withholding Amount	Enter the additional tax amount that the employee wants to be withheld for each pay period. You can find this information in Step 4(c) of the employee’s Form W-4.
Other Income	Enter the income amount that the employee is expecting from other sources like interests, dividends, and retirement income. You can find this information in Step 4(a) of the employee’s Form W-4.
Deductions	Enter the amount of deductions other than the standard deduction amount that the employee wants to claim. You can find this information in Step 4(b) of the employee’s Form W-4.

• Click Save.
• Provide the employee’s state tax details, such as their state filing status, allowance details, and so on. The information collected in this section varies for different states.
• Click Save.
• Provide the information required in the Additional Information section. The information collected in this section varies for different states.
• Click Save. You’ll be redirected to the Payment Details section.

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Payment Details

• Select the Payment Mode.

Payment Mode	Description
Direct Deposit	PREREQUISITE: Direct Deposit must be configured for your organization before setting it up for employees. Provide the employee’s Bank Information to make direct deposit payments to them.
Check	You’ll need to pay your employees via check and then record payments manually for each payroll.

• Click Save and Continue.

Employee’s Bank Information Required to set up Direct Deposit

Field Name	Description
Bank Name	Enter the name of the bank in which the employee holds an account and wants to receive payments from you.
Account Number	Enter the bank account number in which your employee wants to receive payments from you.
Routing Number	Enter the nine-digit routing number of the employee’s bank account.
Account Type	Select the type of bank account: Checking Savings

The employee’s profile will be added to Zoho Payroll.

You can assign benefits and deductions to the employee. You can also configure sick leave and vacation leave policies for the employee.