Salary Components

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

Note: After payroll is set up for the components you’ve associated with one or more employees, you can only edit the Name and Amount/Percentage. The changes made to Amount/Percentage will apply only to new employees.

Add Earning

Any money that an employee receives as an income is termed as an earning. Some of the common earning components are Basic Pay, Housing Cost of Living, and Child Social Allowances.

Go to Settings on the left sidebar 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 which will be displayed on payslips.
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.

Insight: If you’ve selected “Custom Formula” as the calculation type, you can input variables based on the number of days, hours, or units while adding components for the custom formula.

Day and Hour-Based Custom Formulas allow you to define the number of days or hours as relevant input variables, enabling you to calculate earnings based on a given time period. As for Unit-Based Custom Formulas, you can define units as a relevant input variable, enabling you to calculate commissions based on units sold, determine bonuses tied to specific achievements, and allocate allowances for unique job functions.

Check Mark this as Active option.
Click Save.

Scheduled Earnings

One Time Scheduled Earning is a feature in Zoho Payroll 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.

Scenario: Ajmal, the head of the payroll team at Zylker Middle East, welcomes Aisha, a new analyst, to the company. To show appreciation, the management offers Aisha a joining bonus. Using One Time Scheduled Earning in Zoho Payroll, Ajmal configures the joining bonus to be paid in the upcoming payroll run for Aisha. The bonus is included in the scheduled payout month, ensuring Aisha receives it promptly on her first payday, making her feel valued and motivated.

Note: This feature is only available in early access. Contact support@zohopayroll.com to get access for your organisation.

Scheduling earning
Updating scheduled earnings while processing pay runs
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.

Scheduling earnings

To schedule earnings for your employees, you will have to mark the earnings in your salary components as a scheduled earning. Here’s how:

Go to Settings in the top right corner and select Salary Components.

Switch to the Earnings tab.
Select an Earning with Variable as the Calculation Type.
Select This is a scheduled earning.
Click Save.

Note: You will not be able to schedule earnings for which the calculation type is fixed.

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.

Scheduling earnings for an employee

Here’s how you can schedule earning for an employee. Here’s how:

Click Employees on the left sidebar and select an employee.
Switch to the salary details tab.
Click + Add in the top right corner and Scheduled Earning.

Select an earning.
Enter the annual amount and payout month.
Click Save.

Pro-tip: You can select + New Scheduled Earning if you do not find the earning you’re looking for.

Once you’ve added the earning to the employee’s salary details, you will be able to edit or delete it.

Importing scheduled earnings

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

Click Employees on the left sidebar.
Click the More icon in 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.

Updating scheduled earnings while processing pay runs

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:

Click Pay Runs on the left sidebar.
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 during full and final settlement payroll

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.

Benefit Plans

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

Note: Zoho Payroll does not deposit the deductions to the vendors on your behalf. You would have to deposit the deductions by yourself.

Go to Settings on the left sidebar and select Salary Components.
Click Add Component and select Benefits.

Select a Benefit Plan.
Enter the name you wish to display on the payslips you send to employees for this benefit plan.
Check Mark this as Active option.
Click Save.

You can associate this deduction to your employees from the employee details page or during pay runs.

Add Deductions

A deduction is money deducted from your employees’ pay. For example, purchases made in the company grocery store or food court are deductions.

Note: In Zoho Payroll, you can make one-time deductions or recurring deductions.

Go to Settings on the left sidebar 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 associate this deduction to your employees from the employee details page or during pay runs.

Add Correction

Once you’ve associated earnings to employees, you won’t be able to edit them. In such cases, you can create a one-time correction component to make corrections to an earning component.

Go to Settings on the left sidebar and select Salary Components.
Click Add Component and select Correction.

Select the earning type that you want to correct.
Enter the name of the correction.
Check 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 Component

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 component:

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

The changes will be applicable only to the new employees.