Payroll

The Payroll module is designed to help organizations process employee compensation, manage statutory deductions, track earnings, and generate payroll reports. This guide will walk you through the complete payroll workflow from setup to processing.

Overview

The Payroll module follows a structured approach:

1. Payroll Items - Define earnings, deductions, and benefits line items
2. Payroll Types - Create payroll templates grouping related items
3. Rosters - Organize employees into payroll groups
4. Employee Setup - Configure annual payroll amounts per employee
5. Processing - Generate and publish payroll runs

Key Concepts

Payroll Types

Payroll Types are templates that define the structure of a payroll. Each type contains a specific set of payroll items in a defined order.

Examples:

• Regular Payroll - For permanent employees with full benefits
• Contractual Payroll - For contract-based employees
• Job Order Payroll - For job order workers

Payroll Items

Payroll Items are the individual line items that appear on a payslip. They are categorized as:

• Gross Pay - Base salary and allowances
• Statutory Deductions - Government-mandated contributions (GSIS, PhilHealth, Pag-IBIG, BIR)
• Other Deductions - Additional deductions (loans, advances)
• Other Benefits - Additional compensation
• De Minimis Benefits - Tax-exempt benefits up to specified limits
• Employer/Government Share - Employer contributions to statutory agencies
• Loans - Employee loan deductions
• Constants - Fixed reference values used in calculations

Rosters

Rosters are groups of employees who share the same payroll type. When processing payroll, you select a roster to generate payroll entries for all employees in that group.

Employee Setup

Employee Setup defines the annual payroll configuration for each employee. It specifies the amounts for each payroll item that applies to that employee for the year.

Payroll Run

A Payroll Run is a single payroll processing cycle. It generates payroll entries for all employees in a roster for a specific pay period.

Module Navigation

• Processing - Create and manage payroll runs
• Employees - View employee payroll history and setup
• Roster - Manage employee groups for payroll
• Reports - Generate payroll reports
• Settings - Configure payroll system
  • Payroll Types
  • Payroll Items
  • Account Codes
  • Signatories

Payroll Workflow

Initial Setup (One-Time)

1. Create Payroll Items
   └── Define all earnings, deductions, and benefits

2. Create Payroll Types
   └── Group items into payroll templates

3. Configure Account Codes
   └── Map items to accounting chart of accounts

4. Set Up Signatories
   └── Define document signers per organization

Periodic Setup (Annual/As Needed)

1. Create/Update Rosters
   └── Assign employees to payroll groups

2. Create Employee Setups
   └── Configure annual payroll amounts per employee

Regular Processing (Per Pay Period)

1. Create Payroll Run
   └── Select roster, month, and year

2. Review Entries
   └── Verify calculated amounts

3. Make Adjustments
   └── Edit individual entries if needed

4. Publish Payroll
   └── Finalize and lock the payroll run

User Roles

The Payroll module uses role-based access control to manage permissions.

Role Overview

Permissions Matrix

Payroll Processing

Employee Setup

Configuration

Getting Started

1. Access the Payroll module from the main navigation
2. Go to Settings > Payroll Items to review or create payroll items
3. Go to Settings > Payroll Types to create payroll templates
4. Create rosters and assign employees
5. Set up employee payroll configurations
6. Process your first payroll run

Payroll Status

Important: Once a payroll run is published, it cannot be edited or deleted. Ensure all entries are correct before publishing.