Processing payroll for a small group of people for a few months is easy with Microsoft Excel. But as your employee size grows, it will be difficult to continue with Excel. As you will have formula embedded in each excel cell, it’s easy to make mistakes. Comparing payroll for two different months would be really difficult. In the long run, you will be juggling with a lot of files, which will in turn reduce the accuracy.

Step 1: Create a Salary head for each item in the payslip

Creating a new salary head

Step 2: Create a Salary Group.

Pick the Salary heads just created to form a Salary Group and define formulae where required. The formula editor allows you to connect payroll to the attendance module.

Salary Heads - Earnings, Deductions and Non Payslip
Salary Heads - Earnings, Deductions and Non Payslip
Salary Heads - Earnings, Deductions and Non Payslip
Salary Heads - Earnings, Deductions and Non Payslip
Salary Heads - Earnings, Deductions and Non Payslip

Step 3: Assign employees to the Salary Group.

I’m going to add all the Production Managers to the Salary Group we just created.

Now, update data for the employees. You can also import data from excel files.

Step 4: Create a period

I’m going to process payroll for the current month.

Step 5: Salary Processing

Just pick employees and proceed to Salary processing. The processing is done. All reports and payslips are created.

Go to the payslip screen to verify the payslips and the calculation history.

Now, let’s take a look at the reports. The payslip, Salary Register and Bank Transfer Statement.

Step 6: Close the period

Now that the payslips and reports for the current month are prepared, let’s close the period.

Next month onwards, it’s easier to process payroll as the rules to process payroll are already defined. Let’s process payroll for the next month. It’s easy! Just create a period, and run salary processing. It’s done.

Now, let’s compare data between the two months. The comparison report shows the changes between the periods.This makes it easy to locate issues, if any.

Easy, isn’t it. AttendHRM has all the features to manage your payroll, no matter how complicated it is!