- Payroll Settings – Set the primary details of your monthly payroll such as, pay cycle, payout date, and paydays calculation settings.
- PF & ESI Settings – Set the PF & ESI settings for your organization, if applicable.
- PT Settings – Enable or disable Professional Tax (PT) as part of the salary structure.
- Declaration Settings – Control how and when your employees can declare their tax saving investments.
- Payout Settings – View and edit your employees’ payout details.
- Payslip Settings – Manage how your monthly payslips are generated.
- Bank Integration – Pay employee salaries directly from your Kredily account.
This section holds all your primary payroll settings. It further has two tabs, Pay Settings and Pay Days Calculation.
To edit the settings under the ‘Pay Settings’ tab, click on the edit icon on the top right corner. Now, you can toggle Payroll to enable or disable payroll for your company. If you have enabled the payroll, below are the fields that you can set/edit and how they will affect your company’s payroll.
- Effective Date: The effective date should be selected depending upon when you run your pay cycle.
For example – If your company’s pay cycle is from 1st to 31st of every month. Your effective date should be 1st. If your company follows any other pay cycle, you should set the effective date to 1st of the previous month.
Now, if you want to generate payslips from the start of the financial year, set your effective date as 1st April. This is especially helpful when generating Form 16s and calculation of income tax for your employees, as all the financial year payroll data will be consolidated at one place.
- Pay Cycle: This defines the interval that your employees are paid for. By default, the system sets the pay cycle from 1st to 31st. You can change this setting as per your company’s requirement.
- Payroll Leave and Attendance Input Cycle: This function is used to set the leave and attendance input cycle date for that specific month’s payroll. It can be the same as the Pay Cycle or different according to your organization’s policy
- Payout Date: This setting defines the date when your employees receive their salary for the month.
- Payroll DOJ Cut-Off Date For New Joinees: The Payroll Date of Joining Cut-Off date for new joiners is to decide the date before which they will get their salary in the current pay cycle after they join your organization
Note: The pay frequency is set to ‘Monthly’ by default and can not be changed.
Under the ‘Pay Days Calculation’ tab, below are the fields that you can set/edit and how they will affect your company’s payroll.
- Include Weekly Offs – The system by default includes weekly offs for Pay Days calculation for any selected Pay Cycle. The paydays are calculated as 30 or 31 depending on the month.
If you want to exclude weekly offs from paydays calculation, switch the toggle to No and your paydays will show as 22, 23 or 26, 27 days based on the month and work week setting.
- Include Holidays – Similarly, the system by default considers organization holidays for the Pay Days calculation. Depending on your organization’s policy, the number of paydays will vary.
- Consider Pending Leave Application beyond Cut-Off Date as – Any outstanding leave applications beyond the cut-off date can be auto-approved, auto-rejected or can be kept in pending status.
- Consider Pending Leave beyond Cut-Off Date as LOP – If any outstanding leave for an employee is in pending status beyond the cut-off date, then you have the option to mark it as loss of pay (LOP.)
- Consider Outstanding Anomalies Beyond Cut-Off Date as – If there are any outstanding anomalies from employees like late logins and early logouts that are not regularized, you have the option to auto reject, auto approve or keep them in pending status after the cut-off date
- Consider Unapproved Absent Days as LOP – Any unapproved leaves that are taken by employees can be turned into LOP by the system
PF & ESI Settings
Provident Fund (PF) and Employee State Insurance (ESI) settings give you the option of defining employee and employer PF & ESI contributions which form an integral part of the salary structure.
If PF is applicable to your company, toggle PF to ON and make sure the effective date is the same as in Payroll Settings. Below are the fields that you can set/edit under PF Settings.
- Statutory Minimum Monthly Basic for PF calculation – The statutory minimum monthly basic salary for PF calculation is 15000 as per government rules
- Employee PF Contribution Based On – From the drop-down, select the correct Employee PF contribution formula as applicable to your organization. If you do not find the option in the drop-down, use the Custom Formula option to define your own setting
- Employer PF Contribution Based On – From the drop-down, select the correct Employer PF contribution formula as applicable to your organization. If you do not find the option in the drop-down, use the Custom Formula option to define your own setting
- Employer PF Contribution Included in CTC – If your company’s PF contribution is not included in the CTC of the employees then change the toggle to No
- Allow Individual PF Override – If you have an option of a voluntary provident fund (VPF) or there are employees who do not fall into any of the listed formulas, you can switch the individual PF override to Yes. This will help you in managing the PF amount for individual employees. This option will also come in handy if PF is not applicable for any employees
- Employer Pension Scheme – This information is automatically provided by the system
- EDLI Charges – These charges are automatically provided by the system
- PF Admin Charges – These charges are automatically provided by the system
- Include EDLI and PF Admin Charges in CTC – If you want to include the EDLI and PF admin charges in the CTC, then switch the toggle to yes. This will add 1% to the employers PF contribution
If ESI is applicable for your company, then switch on the toggle and make sure the effective date is the same as the one in PF settings. Below are the fields that you can set/edit under ESI Settings.
- Statutory Maximum Monthly Gross for ESI Calculation – It is already provided by the system and no action is required
- Employee Contribution – It is already provided by the system and no action is required
- Employer Contribution – It is already provided by the system and no action is required
- Include Employer ESI Contribution in CTC – To include the employer’s ESI contribution in CTC, switch the toggle to yes
- Allow Individual Override – In ESI settings also, you have an option for individual override
This will give you a summary of all the employee’s PF and ESI information. Details like PF Number, PF Date Joined, UAN, EPS and ESI numbers can be updated through two methods
One, using the Edit option under the Action tab, update these details for each employee individually. The effective date will be the same as in PF settings.
Two, populate all the relevant fields in an excel sheet and use the import option to upload them in the system. This option is very helpful if you want to update the details for multiple employees. You can even download the format if you don’t have one.
An export option is also available for you to download the data into an excel sheet. Once the CTC structure is assigned for employees, PF employer and PF employee values will be automatically visible.
If professional tax (PT) settings apply to your company, you can just switch on the button. Make sure the effective date is the same as the previous one.
If your company has operations all over India, just click on the box before all states. If your company has operations in only a few states, then you can select those states from the box accordingly.
An overview option is provided to give you a summary of all your employee PT details. You also have the option to edit the PT status for individual employees. Please make sure that the effective date remains the same as all others.
This window will help you in setting the timeline for employee investment declarations. It’s a crucial step since employees manage their income tax liability through this. To enable it, switch on the declaration window toggle
Now, you have two options to choose from the declaration window
Monthly Declaration Window – In a monthly setting, you can select the dates between which your employees can make their declarations month on month
Cut-off Declaration Date for Financial Year – There is also a cut-off declaration date for the financial year. The month can be fixed as per your convenience. The date will be the same as the last day of your monthly declaration.
Yearly Window – This will give you the flexibility of setting the declaration window between any time of the year. If you want to set your dates between different months, this is your go-to option.
Whichever setting is selected, can be applied to all employees at one shot using the “Apply to All” option or to specific employees using the “Apply to select Employees option”
Apply to Select Employees option is especially handy if a Yearly option is selected and you have new joiners in the middle of the year.
Apply to Select Employees – If you want to apply the declaration window for only a few employees, there is an Apply to Select Employees option. This is helpful when any new employee joins your organization and the declaration window has already been closed.
Mandatory Proof Submission – Switching on the mandatory proof submission will not allow your employees to make their investment declaration without supporting documents. Use this option at the end of the year when employees.
It is a summary of the employee’s bank information like bank name and account number. All this information will be visible in the payslip based on the format that your organization is using.
Payout Settings is a one-time activity and once the payroll is run, only the administrator will be able to change the employee details. There is also an import option for you to add the details of all the employees in one go. You can use the export option to download all the data to an excel sheet.
We have also provided an individual edit option in case you want to change the details for a single employee. The effective date will be the same as the one in payroll settings. A bulk edit option is also available in case you want to change the details of multiple employees in one go. The effective date will remain the same as before.
In this last setting, we have provided four payslip formats for you to choose from. Only one format can be selected at a time and you can set that as company default
After assigning your salary structure and running the payroll, the payslips that are generated will be in the selected format for employees to download it. This is also a one-time activity and it is important that you complete this before setting your salary structure.
We at Kredily have gone a step further to make your life simpler. Now, credit employee salaries every month without any hassle with the Kredily platform. Now, you can connect your Kredily account with your ICICI business account and credit salaries directly from Kredily. To know about how to enable Bank Integration, click here.
Congratulations! You’ve now successfully set up your Payroll Settings.
We recommend you to read our complete documentation of the Kredily platform and features to manage your employee data, manage employees’ leave/attendance and run payroll cycles.
So, let’s proceed and set ‘Salary Structure’ for your company.