Teamnest gives you the facility to manage your organization's payroll seamlessly through the payroll module. This guide will assist you in comprehending the two essential aspects of using Payroll:
I. Establishing and allocating CTC structures for your employees.
II. Executing the Payroll process.
Creating and Assigning CTC Structures:
You can create your organization's current CTC structures. This includes:
i. Incorporating various Allowances.
ii. Implementing Deductions.
iii. Applying relevant Statutory Deductions such as EPF, LWF, and ESIC.
iv. Establishing and assigning Loans, if applicable.
Step 1: Creating CTC Masters
This lets you create a master list of all components that make up the CTC structure in your organisation.
- Go to Admin Section > Payroll > Define Masters.
- The first tab is for CTC items. By default, you will see four of them - Gross, Retirals, Reimbursements, and Other Benefits.
-
The second tab is for Allowances. By default, you will see a list of allowances available for you to use e.g. Basic, House Rent Allowance, and so on. To add more allowances as per applicability you can click on the Add Allowance button from Admin Section > Payroll.
- Now on the New Allowance page, you can add the Allowance Name, Frequency, Payout Type and Applicability of Statutory Deductions.
Kindly note that:
i. Frequency: The Frequency of the Allowance can be Monthly, Quarterly, Yearly or Informational.
ii. Only the Monthly Allowances would be paid during the payroll cycle, the other components just form part of CTC, when these components are to be paid you need to upload an Excel file with the relevant details as a One-Time Payout.
iii. Payout Type:
Pro-Rata: Payment will be proportionate to the days worked.
Fixed: Payment amount remains constant regardless of days worked.
iv. CTC Item: Please select the CTC item category to which this item should be assigned i.e., Gross, Retiral etc.
v. Continue doing this to add all the Allowances that form part of the CTC for your Organisation.
5. The third tab is applicable for Deductions. By default, you will see a list of deductions available for you to use e.g. VPF, Full and Final Settlement.
6. To add more, you can click on the Add Deduction button.
i. You can choose the Frequency of its application for payroll processing - Monthly, Quarterly, or Yearly or Informational. Only the Monthly Deductions would be deducted during the payroll cycle, the other components just reside as a reference, when these components are to be deducted you need to upload an Excel file with the relevant details as a One Time Deduction.
ii. Choose Payout Type:
Pro-Rata: Pro-rata will be deducted in proportion to the days worked.
Fixed: Fixed will deduct the amount irrespective of the days worked.
iii. Please specify the category under which this deduction should be grouped in the CTC items and continue this process to include all the necessary deductions for your organization.
7. The fourth tab is designated for Loans. Here, you can establish a Loan Master available for your employees. Loans come in two types: EMI-based and non-EMI-based.
i. To add more Loan details, click on the Add Loan button.
ii. Assign a name to the loan.
iii. Indicate whether it is EMI or Non-EMI.
iv. Repeat this process to add all the loans offered by your organization.
8. i. The fifth tab is dedicated to Statutory Deductions. TeamNest includes default provisions for ESIC, Profession Tax, Provident Fund, and TDS. For each Statutory Deduction Head:
ii. You have the option to select the Allowance items to which the deduction applies.
iii. Specifically for the Provident Fund, you can designate the applicable percentage deduction.
Step 2: Building a Salary Structure
Once your masters are created, you can build salary structures easily by combining allowances, deductions, and statutory deductions that reflect your organisation's CTC.
- Go to Admin > Payroll > CTC Structures.
-
i. Select "Add Salary Structure."
ii. Provide a name and description for the structure as a reference.
iii. Click on "Assign Allowances."
iv. Choose an allowance from the list available.
v. Choose how it is calculated - Percentage or Value, Enter the percentage or the value.
vi. If it is a percentage of another field, choose the applicable field from the dropdown.
vii. Repeat this for all the Allowances you wish to add to this Salary structure. - Click on Assign Deductions
- Choose a Deduction from the list.
- Choose how it is calculated - Percentage or Value, Enter the percentage or the value.
- Enter the value or the % value.
- If it is a percentage of another field, choose the applicable reference field from the dropdown.
- Repeat this for all the Deductions you wish to add to this Salary Structure.
- Click on Assign Statutory Deductions and choose all the applicable statutory deductions.
- Save this Salary Structure.
- You can repeat this process for as many salary structures as are needed in your organization.
Note: Deductions, Advances, and Loans which generally do not part form of the CTC need not be assigned here.
Step 3: Assigning Salary Structures to employees.
You can assign the Salary Structures to one or more groups of employees in your organization.
- Go to Admin Section > Manage Employees > Assign CTC Structures.
- Click on the Assign button.
- Assign CTC -This section enables you to link a Salary Structure to an individual employee and specify the employee's actual Cost to Company (CTC).
- Bulk Upload CTC Using Salary Structure - you can use our Excel format to bulk assign Salary Structures to multiple employees and define their CTCs.
- Bulk Upload CTC Using Breakup - you can use our Excel format to bulk assign salaries to employees by defining their breakups, instead of using Salary Structures created in Step 2 above.
- Assign Allowance - Assign individual Allowance to an employee to override their existing Salary Structure.
- Assign Deduction -assign individual Deductions to an employee override their existing Salary Structure.
- Assign CTC -This section enables you to link a Salary Structure to an individual employee and specify the employee's actual Cost to Company (CTC).
- You can use this section to ensure that every salaried employee is assigned an appropriate CTC and a Salary Structure on TeamNest. This will allow you to run payroll for them.
Running Payroll
Once you've established Salary Structures and defined CTC for each employee, you can effortlessly run payroll for them whenever required.
- Admin Section > Payroll > View/Run Payroll.
- If this is the first time you are running Payroll for the current payout month, you will simply need to click on the Create New Payroll button.
- If you have run a Payroll before, it will be listed on this page. You will have the option to run this payroll again by clicking on the Run Again Option.
- You will come to the Payroll Wizard interface. You will be guided through all the steps that are required to run the payroll.
- Step 1: I. Select Period and Employees:
ii. Choose the group of employees and the period (year/month) you want to run Payroll for.
iii. Check 'Process FFS' if you are doing a full and final settlement for any employee.
iv. The Increments tab lets you upload an Excel format to assign or change increments to employees. - Step 2: i. Review Pending Leave and Attendance Requests.
ii. The system will show you any pending Leave requests or Attendance Regularisation requests that apply to the pay period. You can approve or reject them. You need to close all these open requests before proceeding further. - Step 3: Confirm Attendance
i. The system will show you the daily attendance for all the employees.
ii. You have the option of updating the status of individual day records if required. - Step 4: Preview Payable Days
ii. If you are using an external system to record Attendance and Leaves, you can upload the same to override the Teamnest System Attendance and Leaves.
iii. This will be the basis on which the payroll will be calculated.
iv. You can edit any employee record to add adjustment days for a previous month if required. - Step 5: Upload and Verify One Time Payouts.
i. The system will let you upload an Excel for including one-time payouts to certain employees in the chosen pay period. - Step 6: Upload and Verify One Time Deductions.
.
- Step 7: Run Payroll
The system will process the payroll and calculate the salaries for each employee along with the applicable deductions.
- Step 1: I. Select Period and Employees:
Note: In case you need to re-run the payroll for one or more employees, you can easily do so by clicking on Run Again and going through all the steps for those sets of Employees
Once the Payroll is run, the system will generate an Excel with salary payouts for your final review. Once you close payroll you can generate a Bank Transfer File to effect salary transfers from Admin Section > View/
Comments
0 comments
Please sign in to leave a comment.