Payroll › Payroll › Payroll Runs

A payroll run is one month's pay for a group of people. You create it, the system calculates everyone's pay from their salary, attendance, leave and approved extras, and then it moves step by step: Draft → Processed — awaiting approval → Approved → Paid. If Payroll shows a padlock, it isn't in your company's plan; if it's missing from the menu, your role doesn't include it.

Before your first run, finish the setup chain the page shows: build a salary structure under Payroll › Payroll › Salary, then give each employee a salary (their profile's Salary tab, or Assign Salary).

Create and process a run

1. Click Create Run. Pick the Month and Year — you can't run a month in the future — then click Create.
2. If your company has office locations, choose the Run scope: By country (whole organisation) or By office location. One run always covers one country and one currency. Today payroll runs are available for India; the dialog lists the countries you can use.
3. Open the run and click Process Payroll. A check runs first and shows three kinds of message: Issues that must be fixed before processing (for example, an employee with no salary), Warnings — review before proceeding (for example, the month hasn't ended or attendance is missing) and For your information notes.
4. Fix any issues. If only warnings are left, tick I understand the risks listed above… and click Proceed Anyway. Otherwise click Process Payroll.
5. Check the totals and the Processed employees table. Click View breakdown on any row to see working days, paid days, loss-of-pay days and each pay line.

Approve, pay the bank, release

1. A different person clicks Approve payroll. The person who processed the run can't approve it or release it. Payslips are created now, but employees can't see them yet.
2. Click Bank File to download the payment file for your bank (Bank File (Excel) is the same list to open in Excel). Upload it to your bank and make the payment.
3. Once the money has gone, click Release Salaries. Enter the Payment date and, if you like, the Payment reference (your bank's reference number), then click Release Salaries.
4. The run now shows Paid. Employees can see their payslips, and get an email if payslip emails are set up for your company.

Overtime in a run

Overtime is paid only if your company has switched on Pay overtime in payroll under Settings › Time & Leave › Attendance. When it is on, the run shows an Overtime review section:

1. For each employee, someone who can approve payroll clicks Pay or Don't pay. Open a name to see each day's hours and rate. Payroll can't be processed until every employee's overtime is decided.
2. When approving the run, the approver sees the overtime table and must tick I have checked the overtime hours and amounts above.

Overtime is paid by the hour: monthly gross ÷ base days ÷ full-day hours × overtime hours × the overtime rate. "Don't pay" is final for those hours. The separate Overtime Advisory panel lists hours from approved timesheets — it is for reference only and pays nothing.

Fixing mistakes — reopen or cancel

• Cancel Run works on a Draft or a Processed run. Cancelling a processed run undoes its effects: bonuses go back to unpaid and that month's attendance and loss of pay are unlocked. You can then create a fresh run for the same month. If anything can no longer be paid by a future run, a box called Action needed after cancelling tells you what to do.
• Reopen works on an Approved run that isn't paid yet. You must give a reason. The run goes back to Processed — awaiting approval and its payslips are cleared. A reopened run can't be processed again — to change figures, cancel it and create a new run.
• A Paid run is closed for good. It can't be reopened or cancelled.

Settings that change the numbers

• Settings › Finance › Base Days — how many days a month's salary is divided by: Calendar month (you choose whether week offs and holidays count), 30-day month or 26-day month. This sets what one day of loss of pay costs, what a paid rest day earns, and the hourly overtime rate.
• Settings › Finance › Leave Encashment — how cashed-out leave is priced: a day is your chosen pay (Gross salary or Basic salary) divided by the calendar month's base days, 30 or 26. With no rule saved, it is gross ÷ 30. Approved encashments are paid in the next payroll run. They are taxed, but don't count for PF, ESI or Professional Tax.

The Salary Register button at the top of the Payroll page shows everyone's current salary (read-only, with Export CSV).

Payroll › Payroll › Opening Income Tax

Use this if your company paid people outside Verdeshell earlier in this financial year — say April to June on your old payroll. Verdeshell then works out the rest of the year's tax on the full year's salary. An HR Manager sees only the employees of their own department and any department they look after.

Enter opening figures

1. Pick the Financial year.
2. For each employee, enter Taxable salary (what you paid minus tax-free allowances such as the HRA exemption), TDS (income tax you deducted) and, if any, Professional tax.
3. Click Save on that row. Remove clears it.

The figures lock once payroll for that year has been finalized with them. The same page also sets the Tax declarations — window and proof deadline: the day of each month until which employees can change their declaration, and the date by which proofs are due. After the proof deadline, only amounts HR has approved reduce income tax. Only company-wide roles (HR Admins, Tenant Admins, Finance Approvers, Payroll Admins, the owner) can change this setting — HR Managers can't.

Payroll › Payroll › Salary

Four tabs: Components (the building blocks, like Basic or HRA), Structures (a recipe that splits a CTC into components), Revisions (salary changes) and Arrears (money owed from back-dated raises). Finance Approvers, Payroll Admins and leadership can look; only people with edit rights can change anything.

Build a structure

1. On Structures, click Create Structure and give it a Structure Name, country and currency.
2. Answer three questions: where Employer PF sits, where Gratuity sits, and where Variable pay (bonus / incentive) sits — Inside the CTC or Over and above the CTC. The screen marks the recommended answer.
3. Under Pay lines, click Add the standard lines (Basic, HRA, Special Allowance), or tick your own. Each line is a % of CTC, a % of another line, a Fixed per month amount, or the Balance (the rest) — one line takes whatever is left so the total always equals the CTC.
4. Save. PF and ESI are added automatically from your statutory settings.

Give someone their first salary

1. Click Assign Salary (or use the employee's Salary tab). Pick the employee, Salary Structure, Annual CTC and Effective From date.
2. Click Review, check the Review — monthly breakdown, then save.

Change a salary (revision)

1. On Revisions, click Create Revision. Pick the employee, enter the New Annual CTC, the Revision Type (Annual Increment, Promotion, Correction, Transfer or Probation Confirmation), the Effective Date and, if needed, a new Salary Structure.
2. Check the new monthly breakdown and create it.
3. Someone else with edit rights clicks Approve (or Reject with a reason). Approval applies the new salary straight away. Generate Letter then sends the employee a revision letter.

• Revisions start on the 1st of a month — payroll pays a whole month at one salary.
• Back-dated raise: the difference for months already paid is added as arrears to the next payroll run. You'll see it on the Arrears tab, where it can be cancelled before it is paid.
• Back-dated cut: money already overpaid is not taken back automatically. The approval box shows the most it could be; recover it separately (for example with a deduction under Payroll inputs).
• Nobody sets, approves or rejects their own salary. In a company with only one administrator, they may do it as a last resort, and it is recorded.
• Move to structure moves several people at once; Approve several approves many revisions together.

Payroll › Payroll › Payroll inputs

Anything paid or taken back on top of normal salary goes here. Each item goes through its approval levels and is then paid (or recovered) by the first payroll run for its month or later.

Add an item

1. Click Add item and choose the Employee.
2. Choose the Type: Incentive, Variable pay, a bonus (Performance, Festival, Ex-gratia, Special or Statutory), Reimbursement or Deduction.
3. Enter the Amount and the Pay month (for a deduction: Recover from (pay month)). The description is for you only — it never prints on the payslip. An incentive needs one, e.g. "Q2 sales".
4. Click Add. It now waits for its approvers.

• Reimbursement — money paid back for something the employee paid for. Add the Bill reference and upload the Bill (PDF or photo, up to 10 MB). It is never taxed. Employees can also claim their own from Operations › Reimbursements; those come to the same approvers.
• Deduction — money taken back. Choose a Reason: Canteen / amenities, Damage / loss (enter the actual loss; the deduction can't be more), Overpaid salary (pick the month) or Other (a note is required). It is taken after tax, and never more than the pay left or half the month's wages. Anything that doesn't fit carries to the next payroll; anything still owed when someone leaves comes out of their final settlement.
• Variable pay pays out the variable-pay line in the employee's CTC. Enter the Financial year. The year's total can't go over the yearly variable pay in their salary. If they have no variable pay in their salary, add it to the CTC or use a bonus or incentive instead.

Approval, withdraw and cancel

• Approval levels for each type are set under Settings › Finance › Payroll Inputs Approval: Reporting Manager, Department Head, HR Manager, Finance Manager, Finance Head and CFO, each with an optional amount band. If no level is switched on, a Finance or HR Admin approves it right here with Approve or Reject.
• The people for each position are named under Settings › Responsibilities — the same list expense claims use, so there is no separate approver list for payroll inputs. The Department Head (named there, or under Settings › Departments) approves payroll inputs only, not expense claims.
• A level is never skipped: if a level is on and nobody who can approve holds it (or the employee has no reporting manager), the item is refused when you add it and says what to fix.
• Levels look at the employee's total of that type for the month, so splitting an amount into small pieces doesn't skip a level. Nobody approves their own item or one they entered.
• Withdraw — the person who entered an item can take it back while it is still waiting.
• Cancel — Finance or an HR Admin can cancel an approved item (a reason is required) until a payroll run (or a final settlement) has picked it up. To take it out of a processed run, cancel that run first. You can't cancel your own, and a deduction must be cancelled by someone other than the person who entered it.
• Reassign approver — if an approver has left, lost their role or been removed from their position, move the waiting item to whoever holds that position now (name them under Settings › Responsibilities first).

On the payslip an item shows as Incentive, Bonus, Variable Pay, Reimbursement or Deduction. Its status moves from "Waiting for …" to approved, to "processed" once a run includes it, to Paid (or Recovered) when that run's salaries are released. An item that stops early shows Rejected (an approver said no), Withdrawn (the person who entered it took it back) or Cancelled after approval (Finance or HR cancelled it after it was approved), each with its reason.

Payroll › Payroll › Payroll Approvals

You only see items whose current level is waiting on you — never your own, never ones you entered, and never one you already approved at another level. A reimbursement has a link to open the bill — check it first.

1. Click Approve. You can lower the amount (never raise it) and add a comment. If you lower an employee's own reimbursement claim, the comment is required. The next level is then notified.
2. Or click Reject and give a reason — the item stops there.
3. To approve many as entered, tick them and click Approve selected.

Your decision history, at the bottom, keeps what you approved or rejected.

Payroll › Payroll › Tax Review

Employees declare their investments and other claims and upload proofs. Here you review them. Submitted ones wait under Submitted declarations; finished ones sit under Reviewed declarations. An HR Manager sees only the declarations of their own department and any department they look after.

Review a declaration

1. Open a declaration under Submitted declarations. You see each item, its proofs, any previous-employer income, and a Computed tax projection.
2. For each proof, open the document and verify it — type a smaller amount if the proof supports only part of the claim, or leave it blank to accept it in full — or reject it with a reason.
3. Click Approve, or Reject with a reason the employee will see so they can fix and resubmit.

• Corrections later: open a reviewed declaration and re-verify or reject a proof. The new amount is picked up by the next payroll run. Re-open sends the whole declaration back to the employee to change.
• Let someone declare now opens an employee's declaration outside the normal window, until this month's payroll processes them — handy for a new joiner.
• From 30 days before the proof deadline, a banner shows how many declarations are still waiting for proof.
• You can also Generate Form 16 and Download Form 16 for the employee from here.

Payroll › Payroll › Form 16

Form 16 is India's TDS certificate. It is built from finalized payroll, so only employees paid through an India payroll in that year are listed, and only finished financial years can be picked. An HR Manager sees only the employees of their own department and any department they look after.

1. Pick the Financial year. Each employee shows Pending, Generated or Released.
2. Click Generate all (or generate one person at a time). It runs in the background and then tells you how many worked and which failed, and why.
3. Click Release. Only now can employees download their Form 16 from My Forms and acknowledge it.

Payroll › Payroll › Form 12BA

1. Pick the Financial year and the employee.
2. For each perk, enter its Value and what the employee paid back (Recovered). The Taxable amount is worked out for you.
3. Click Save.

The taxable total is added to the employee's income-tax calculation and prints as the 12BA sheet with their Form 16. This page is only available for companies based in India. An HR Manager can pick only employees of their own department and any department they look after.

Payroll › Payroll › Form 24Q

Each month you deposit the income tax deducted from salaries with the government and get a challan. Record those challans here; the per-employee detail comes from finalized payroll. The return covers the whole company, so only company-wide roles use this page — HR Managers don't see it.

1. Pick the Financial year. Fill in the Deductor — person responsible for deduction once and click Save deductor.
2. Under Record a challan (CIN), enter the Month tax deducted, Deposit date, BSR code, Challan serial and TDS amount (plus cess, interest or fee if any). Click Record challan.
3. Compare Challans deposited with TDS deducted (payroll). A warning shows if part of a month's tax isn't covered by a challan.
4. Click Export CSV and import it into your return-preparation tool to create and validate the file you upload.

Payroll › Final Settlements

Every leaver whose clearance has started appears here. Tabs group them: Open, Waiting, To calculate, To approve, To pay and Paid. You see the leavers within your reach (an HR Manager sees the leavers of their own department and any department they look after). Your own settlement is on your own exit page, never here. Alerts about a leaver's exit, clearance and settlement go to the HR Managers who look after that person; if nobody does, they go to the HR Admins.

Calculate and submit

1. Wait until every clearance item is cleared and the last working day has come — the button isn't offered before then.
2. Open the leaver and enter only what the system can't know: Other bonus, Other earnings, Reimbursements to pay, Asset recovery and Other deductions. Click Calculate Final Settlement.
3. Check each line. Changed something? Use Recalculate while it is a draft.
4. Click Submit for Finance Approval.

What is worked out for you

• Pending Salary — the last month, from attendance, exactly as a payroll run would.
• Leave Encashment — leftover leave of types marked as cashable, plus any approved encashment not yet paid, priced by your Settings › Finance › Leave Encashment rule.
• Notice Period Buyout — if the exit has a buyout, only the notice not served is counted, at monthly gross ÷ 30 a day. It is either paid by the company (pay in lieu of notice) or recovered from the employee, as set on the exit.
• Approved bonuses and Salary Arrears no run has paid, approved Overtime, approved reimbursements, and deductions still owed from Payroll inputs.
• Provident Fund, ESI, Professional Tax and TDS on Settlement, worked out the way payroll does them.
• Salary Recovery — if salary was paid for days after the last working day, it is taken back.

Approve and pay (Finance)

1. Open a settlement under To approve. If it pays overtime, tick that you have checked the overtime amount.
2. Click Approve Settlement — or type what needs to change under Or send it back to HR and click Send Back.
3. After paying, enter the Payment reference (optional), click Mark as Paid, then Confirm payment. This completes the exit and can't be undone.

Payroll › Statutory

This is the same screen as Settings › Finance › Statutory. It has three tabs: Provident Fund, ESI and Professional Tax. Income tax (TDS) has no settings here — Verdeshell keeps the tax rates itself, and you handle TDS through Tax Review, Form 16 and Form 24Q.

Set up PF and ESI

1. On Provident Fund, click Add config. Choose the country and enter Employee %, Employer %, the Wage ceiling, the Gratuity rate (%) and, optionally, your Establishment ID.
2. On ESI, click Add config and enter Employee %, Employer % and the Wage ceiling. ESI applies only when monthly wages are at or below the ceiling.

Without a PF or ESI setting, nothing is deducted for it. When rates change, add a new setting from the date of the change. Payroll uses the setting in force on the last day of each month, and months already processed can't be changed. After a PF change, the screen offers to re-cut the salaries it affects.

Professional Tax

• For most Indian states, Verdeshell keeps the rates up to date and payroll uses the rate for each employee's work location. The reference table at the bottom of the tab shows which states are covered.
• Click Add slab only for a state Verdeshell doesn't cover — and for Tamil Nadu offices outside Greater Chennai. Enter the income band, the monthly tax and, if different, the February tax.
• Under PT registrations, click Add registration to record your registration number (PTRC) and, if you have one, your enrolment number (PTEC) for each state. They print on the Professional Tax Register report.