Payroll Processing

Payroll processing in JobNext follows a structured sequence: define Welfare heads (salary structure), set Welfare Allowances for employees, finalize attendance for the period, then run payroll. The system calculates net pay based on configured earnings, deductions, attendance records, leave adjustments, and statutory requirements. After payroll is generated and approved, salary is remitted through the Finance module.

Payroll Workflow Overview

Payroll Dashboard

The main Payroll page is accessed via HR > Payroll. It provides the central hub for all payroll operations.

Main Page Layout

Prerequisites for Payroll

Before generating payroll, three components must be properly configured:

Step 1: Welfare (Payroll Heads)

Welfare refers to the compensation framework — the Payroll Heads that define the salary structure. Each welfare head represents either an Earning (adds to pay) or a Deduction (reduces pay). Welfare heads are the building blocks of every payslip.

Navigation: HR > Payroll > Welfare (from the right sidebar)

Welfare Grid Columns

Common Welfare Heads (Examples)

Adding / Editing a Welfare Head

Click Add + to create a new welfare head, or click the edit (pencil) icon on an existing row. The Edit Welfare form appears:

Welfare Form Fields

The form also includes an Employee Group Details section at the bottom, which allows restricting this welfare head to specific employee groups.

Step 2: Welfare Allowances

Welfare Allowances define the actual monetary amounts to be paid or deducted for each welfare head per employee. While Welfare defines the salary structure, Allowances define the salary values. Allowances must be configured before generating payroll.

Navigation: HR > Payroll > Welfare Allowances (from the right sidebar)

Six Assignment Methods

JobNext provides six ways to assign welfare allowances, giving flexibility to match your organization’s salary structure:

Precedence Rules (Highest to Lowest)

When multiple assignment methods apply to the same employee for the same welfare head, the system uses the following priority:

1. By Employee — highest priority, overrides all other assignments
2. By Cadre — overrides department and designation
3. By Department — overrides designation
4. By Designation — lowest priority (default fallback)

Activating / Deactivating Allowances

Newly created welfare allowances are automatically active. To temporarily or permanently stop an allowance from being included in future payroll runs, use the De-Activate action on the allowance record. Deactivated allowances remain in the system for audit purposes but are excluded from payroll calculations.

Step 4: Generate Payroll

Once welfare heads, allowances, and attendance are all configured and finalized, you can generate the payroll run.

How to Generate Payroll

1. Navigate to HR > Payroll
2. Click the Generate Payroll button (blue button at top-left)
3. The Generate Payroll dialog opens:

Generate Payroll Dialog Fields

4. Select the Month and Year for the payroll period
5. Click Select Staff to choose which employees to include in this run
6. Add any Notes for reference
7. Click Generate to start the payroll calculation

What Happens During Payroll Generation

The system executes the payroll calculation engine, which:

• Retrieves each employee’s welfare allowance amounts based on the precedence rules
• Applies proration for prorated welfare heads based on days present from finalized attendance
• Computes overtime amounts using configured OT multipliers and normal working hours
• Calculates leave deductions for unpaid leave (LOP) days
• Applies statutory deductions (PASI, insurance, etc.) based on welfare head calculation procedures
• Computes income tax (India-specific: tax slabs, Chapter 6 exemptions, etc.) where applicable
• Generates individual payslips for each employee showing all earnings, deductions, and net pay

Step 5: Review Salary Runs

After payroll is generated, a new entry appears in the Salary Runs grid on the main Payroll page. Use the Month/Year filters to find runs for a specific period.

Each salary run shows:

• Run date and period (month/year)
• Number of employees included
• Total gross pay, total deductions, and total net pay
• Run status (Draft, Approved, etc.)
• Action buttons to view details, approve, or delete (if still in draft)

Click on a salary run row to drill down into individual employee payslips and review the detailed breakdown of earnings and deductions for each staff member.

Step 5: Approve Payroll

After reviewing the salary run and verifying all payslips are correct, the payroll must be approved to finalize it. Approval locks the run and triggers several automated processes.

What Happens on Approval

When a payroll run is approved, the system automatically:

1. Resolves the default job to book payroll expenses (from system configuration)
2. Creates a Finance voucher with module code “PAYROLL”, debiting salary expense ledgers and crediting the Salaries Payable liability ledger
3. Computes staff actual cost for each employee for the period
4. Runs leave accrual/management — posts monthly leave entitlement transactions to employee leave balances based on eligibility by designation and leave type rules
5. Updates staff demographics where applicable (e.g., tenure-based calculations)

Step 6: Salary Remittance

Once payroll is approved, the Net Pay is credited to the Salaries Payable Ledger (a current liability in Finance). To actually pay employees and discharge this liability, you process a Salary Remittance.

Navigation: Finance > Salary Remittance

Salary Remittance Process

1. Navigate to Finance > Salary Remittance
2. Select the approved payroll run to remit
3. Review the salary disbursement summary showing each employee’s net pay
4. Select the payment method (Bank Transfer or Cash)
5. Select the Bank/Cash account to pay from
6. Process the remittance — a single Bank or Cash payment covers multiple employees
7. The system creates a payment voucher that discharges the Salaries Payable liability

Chapter 6 Exemptions (India-Specific)

For organizations operating in India, JobNext supports Chapter 6 income tax exemptions that reduce taxable income during payroll processing. This feature allows recording employee-declared exemption amounts for a financial year.

Navigation: HR > Payroll > Chapter 6 Exemptions (from the right sidebar)

Grid Columns

Click Add Exemption to create a new exemption entry. Each row can be edited (pencil icon) or viewed (magnifying glass icon).

Loan Request

The Loan Request feature allows employees to request company loans, which are then deducted from their salary through EMI (Equated Monthly Installments) during payroll processing.

Navigation: HR > Payroll > Loan Request (from the right sidebar)

Page Elements

Once a loan is approved, the system automatically creates a Loan Recovery deduction welfare head entry that deducts the EMI amount from the employee’s salary each month until the loan is fully repaid. Loan amortization vouchers are managed through Finance > Loan Amortisation Vouchers.

Welfare Allowances History

This page provides a complete audit trail of all changes made to welfare allowances, helping you track who changed what and when.

Navigation: HR > Payroll > Welfare Allowances History (from the right sidebar)

Filter Options

Each history record shows the old value, new value, date of change, and the user who made the modification. This is useful for auditing salary revisions, verifying allowance updates before payroll runs, and resolving disputes.

Payroll Log

The Payroll Log records the execution history of all payroll runs, including errors and warnings encountered during generation.

Navigation: HR > Payroll > Payroll Log (from the right sidebar)

When payroll runs have been executed, the log shows:

• Run date and time
• Month/Year of the payroll period
• Number of staff processed
• Success/failure status for each employee
• Error messages for failed calculations (e.g., missing allowances, attendance not finalized)

Common Payroll Workflows

Workflow 1: Monthly Payroll Processing (End-to-End)

1. Upload & Finalize Attendance — Go to HR > Attendance, upload the month’s attendance data, validate, and finalize. See Attendance.
2. Review Welfare Allowances — Check HR > Payroll > Welfare Allowances to ensure all employee allowances are current. Update any salary revisions, new joiners’ allowances, or site-specific allowances.
3. Generate Payroll — Go to HR > Payroll, click Generate Payroll, select the month/year, choose staff, and generate.
4. Review Payslips — Click on the salary run in the grid to review individual payslips. Verify gross pay, deductions, and net pay for each employee.
5. Approve Payroll — Once verified, approve the salary run. This creates the Finance voucher and runs leave accrual.
6. Process Salary Remittance — Go to Finance > Salary Remittance, select the approved run, and process payment to discharge the salary liability.

Workflow 2: Adding a New Employee to Payroll

1. Create Staff Record — Add the employee in HR > Staff Directory with correct designation, department, and cadre.
2. Check Welfare Applicability — Verify the employee’s cadre/designation/department has the required welfare allowances configured. If the new employee needs special amounts, add “By Employee” allowances.
3. Upload Attendance — Include the new employee in the attendance upload for their joining month (pro-rated from join date).
4. Generate Payroll — Include the new employee when generating payroll. The system will prorate earnings based on days present.

Workflow 3: Processing a Salary Revision

1. Update Welfare Allowances — Go to HR > Payroll > Welfare Allowances and modify the relevant allowance amounts for the affected employees (by employee, cadre, designation, etc.).
2. Verify in History — Check Welfare Allowances History to confirm the changes were recorded correctly.
3. Generate Next Payroll — The updated allowances will automatically be used in the next payroll run.

Best Practices

Frequently Asked Questions