Regular Payroll
A regular payroll refers to the standard and recurring process of paying salaries to your employees based on a recurring pay schedule.
Processing a regular payroll involves several essential steps, including:
- Calculating the gross pay (total earnings before deductions) and net pay (earnings after taxes and deductions) for each employee.
- Withholding the correct amount of taxes and other deductions.
- Making payments to employees.
- Maintaining accurate records for compliance and tax reporting requirements.
Run a Regular Payroll
PREREQUISITE Before you can start running payrolls for your organization, make sure you have completed the following:
Running a regular payroll in Zoho Payroll involves three main steps:
- Processing a regular payroll
- Approving the regular payroll
- Recording payment for the regular payroll
Step 1: Process a Regular Payroll
To process a regular payroll:
- Click Pay Runs on the left sidebar. Your upcoming payrolls will be listed under the Run Payroll tab.
- Click Process Pay Run.
Your regular payroll will be created in Draft status. Review the payroll details, make necessary changes, and proceed to approve the payroll.
Step 2: Approve the Regular Payroll
PREREQUISITE Ensure you have sufficient funds in your bank account to cover both the net payroll amount and all associated taxes.
WARNING Once you approve a regular payroll, you cannot edit or delete it.
To approve a regular payroll:
- Go to the Pay Runs module.
- Click Process Pay Run.
- Click Approve Payroll on the top right.
- In the popup that appears, click Approve Payroll.
INSIGHT If you have enabled Zoho Books integration, you can choose to post the journal entry for the payroll transaction in Zoho Books. The transaction will be recorded under the account configured during the integration setup.
Your regular payroll will be approved. If you have set up Direct Deposit for your organization and employees, salaries will be deposited to your employees’ bank accounts on the payday. Additionally, applicable tax amounts will be deducted from your organization’s bank account and deposited to the corresponding tax agencies.
Step 3: Record Payment for the Regular Payroll
If you pay your employees manually via check, cash, or any other payment mode, you can make the payment on the pay date and record it manually in Zoho Payroll.
To record payment for a regular payroll:
- Go to the Pay Runs module and open a payroll in the Payment Due status.
- Click Mark as Paid on the top right.
PRO TIP To record payment for individual employees instead of recording for the payroll as a whole, click Mark as Paid next to the corresponding employee.
- In the pop-up that appears, select the Paid Through Account and Payment Mode.
- Enable Send pay stub notification email to all employees if you want to email the pay stub to your employees. Otherwise, leave it disabled.
- Click Save.
The regular payroll will be marked as paid, and applicable state and federal taxes will be generated in the Taxes module.