Many users may initially find processing payroll in BizCentric HR a bit challenging, but it’s more about the setup being somewhat tedious at first. Once the initial setup is completed, the subsequent payroll processing becomes easier. Below are the steps for a quick guide:

1. Establish Payroll Period:

Define the period for payroll processing, such as January to December or April to March, according to your company’s fiscal year.

2. Create Income Tax Slabs:

Generate multiple Income Tax slabs following the Indian Income Tax system. Define these slabs according to government regulations. Additional tax and conditions can be added if necessary. Also, check ‘Allow Tax Exemption’ if a standard deduction applies.

3. Submit Employee Tax Exemption Declaration:

Employees with investments can submit tax declarations to avail tax benefits, thereby reducing their Income Tax amount. They can invest in various subcategories under 80C, 80D, etc. (Applicable for Indian Taxation).

4. Define Salary Components:

Create salary components and specify whether they are Earning or Deduction components. Checkboxes can be selected based on the component type. Choose the company and default ledger account. Salary components can be formula-based or fixed amount. For Income Tax components, ensure to select “Variable based on Taxable Salary” to enable automatic Income Tax calculation.

5. Create a Salary Structure:

Once all salary components are created, define a salary structure. Specify whether the salary is based on timesheets. Add earnings and deductions as needed, along with the mode of payment.

6. Assign the Salary Structure:

Assign the created salary structures to employees. During assignment, select the appropriate Income Tax Slab if multiple slabs exist, as Income Tax deduction percentage will be based on this selection. Base amount can also be defined if salary structures are formula-based.

7. Create a Payroll Entry & Salary Slips:

Once the above steps are completed, create a payroll entry. Select the payroll date, frequency, and payment account. Employees can be filtered based on department, designation, and branch. Alternatively, click on ‘Get employees’ to display a list of all employees. Proceed by clicking “Create Salary Slips” to generate all salary slips in draft. Verify the draft salary slips and then submit them via the payroll entry. This creates an accrual journal entry, booking salary expenses in the system without actual payment.

8. Bank Entry:

As the final step, create a Bank Entry to complete the payroll process. However, this step does not transfer salaries to bank accounts; it must be done manually.