Frequently Asked Questions (FAQs)

Quick answers to the most commonly asked questions about the Payroll module.

General Questions

Q1: How many employees can I process in the payroll module?

A: There is no limit. The system can handle unlimited employees. For very large organizations (1000+ employees), we recommend processing in batches for better performance.

Q2: Can I process payroll for multiple months in advance?

A: Yes, you can generate payroll for future months. However, ensure all prerequisite data (attendance, leaves, etc.) is available for those months.

Q3: Can I edit payroll after it's approved?

A: Only Admin can revert approved payroll to draft status. Once reverted, you can make changes and re-approve. Paid payroll should not be edited unless absolutely necessary.

Q4: How long is payroll data stored?

A: Payroll data is stored indefinitely in the system. We recommend maintaining data for at least 7 years as per legal requirements.

Q5: Can employees view their own payslips?

A: Yes, employees can log in and view/download their payslips from the Employee Portal under "My Payslips" section.

Salary Components & Calculation

Q6: How is LOP (Loss of Pay) calculated?

A: LOP = (Monthly Gross Salary / Total Days in Month) × Number of Absent Days
The system automatically calculates LOP based on attendance data.

Q7: Can I create custom salary components?

A: Yes, you can create unlimited custom salary components (both earnings and deductions) from Configuration → Salary Components.

Q8: How do I handle mid-month salary changes?

A: Create a new salary structure with the new amounts and set the effective from date. The system will pro-rate the salary automatically during payroll generation.

Q9: Can I have different salary structures for the same employee?

A: Yes, you can maintain multiple salary structures with different effective dates. The system will use the structure that's active for the payroll month.

Q10: How is overtime calculated?

A: Create an "Overtime" earning component. You can either set a fixed amount per month or calculate based on hourly rate × overtime hours. Add it as a one-time component in payroll.

Statutory Compliance

Q11: Is PF mandatory for all employees?

A: PF is mandatory for organizations with 20+ employees. However, employees earning more than ₹15,000 basic can opt out (though not recommended). Configure this in employee master.

Q12: What is the PF wage ceiling?

A: Currently ₹15,000. PF is calculated on Basic + DA, capped at ₹15,000. Even if an employee's basic is ₹30,000, PF will be calculated only on ₹15,000.

Q13: When should I file PF ECR?

A: PF ECR must be filed by the 15th of the following month. For example, January PF should be filed by 15th February.

Q14: How do I handle employees who choose new tax regime?

A: Collect employee's tax regime choice at the start of financial year. Update it in employee master under Tax Settings. System will calculate TDS accordingly.

Q15: Can the system generate Form 16?

A: Yes, go to Payroll → Reports → Form 16. Select financial year and employee. System generates Form 16 in the prescribed format.

Loans & Advances

Q16: Can I give interest-free loans?

A: Yes, set the interest rate to 0% when creating the loan type or individual loan.

Q17: What happens if employee resigns with an active loan?

A: Deduct the outstanding loan amount from the employee's final settlement. You can manually close the loan and enter the settlement details.

Q18: Can I skip EMI deduction for a particular month?

A: Yes, go to the loan details and click "Skip EMI for This Month". The tenure will automatically extend by one month.

Q19: Can an employee have multiple active loans?

A: Yes, an employee can have multiple active loans of different types. All EMIs will be deducted automatically from salary.

Reimbursements

Q20: Are reimbursements taxable?

A: It depends on the category. Some reimbursements like medical (up to ₹15,000) and LTA are tax-exempt. Configure tax exemption in reimbursement category master.

Q21: Can I set monthly limits for reimbursement categories?

A: Yes, when creating a reimbursement category, you can set maximum limit per claim or per month. System will not allow claims exceeding the limit.

Q22: What if I approve a reimbursement by mistake?

A: Admin can revert approved reimbursements to pending status. Go to the reimbursement and click "Revert to Pending", then reject it with proper remarks.

Reports & Bank Files

Q23: Which bank formats are supported for salary transfer?

A: The system supports NEFT, RTGS, and custom formats for major banks (SBI, HDFC, ICICI, Axis, etc.). Contact support if you need a specific bank format.

Q24: Can I email payslips to all employees at once?

A: Yes, go to Payroll → Payslips, select the month, and click "Email All". System will send payslips to all employees' registered email addresses.

Q25: Can I customize the payslip format?

A: Yes, Admin can customize payslip template from Configuration → Payslip Template. You can add company logo, change layout, and add custom fields.

Processing & Workflow

Q26: Can I regenerate payroll after it's been generated?

A: Yes, if payroll is in Draft status, you can delete and regenerate it. If it's approved, only Admin can revert it to draft first.

Q27: What is the difference between Draft, Approved, and Paid status?

A: Draft: Payroll generated but not finalized, can be edited.
Approved: Payroll reviewed and approved, ready for payment.
Paid: Salary has been transferred to employees' accounts.

Q28: Can I process payroll for selected employees only?

A: Yes, during payroll generation, you can choose "Selected Employees" and pick specific employees from the list.

Q29: How do I handle new joiners who joined mid-month?

A: Ensure the joining date is correctly set in employee master. System will automatically calculate pro-rata salary based on actual days worked.

Q30: Can I add bonus or arrears in regular payroll?

A: Yes, add them as one-time earning components when editing the payroll. Enter the amount and add remarks explaining what it's for.

Technical Questions

Q31: Which browsers are supported?

A: Chrome (recommended), Firefox, Safari, and Edge. For best experience, use the latest version of Chrome.

Q32: Can I access payroll from mobile?

A: Yes, the system is mobile-responsive. However, for complex operations like payroll generation and approval, we recommend using a desktop/laptop.

Q33: Is my payroll data secure?

A: Yes, all data is encrypted and stored securely. Access is role-based, and all actions are logged in audit trail. Regular backups are maintained.

Q34: Can I export payroll data to Excel?

A: Yes, all reports and payroll data can be exported to Excel, PDF, or CSV format.

Q35: Can I import employee salary structures in bulk?

A: Yes, download the Excel template from Employee Salary Structure page, fill in the data, and upload it back. System will validate and import all structures.

Attendance & Leaves

Q36: How does leave affect salary?

A: Paid leaves don't affect salary. Unpaid leaves (LOP) are deducted from salary. The system automatically calculates LOP based on attendance data.

Q37: What if attendance is not marked for some employees?

A: System will show an error during payroll generation. You must mark attendance for all employees before processing payroll.

Q38: Can I override LOP calculation?

A: Yes, when editing payroll, you can manually adjust the LOP amount. Add remarks explaining why you're overriding the system calculation.

Year-End Processing

Q39: How do I close the financial year for payroll?

A: Generate Form 16 for all employees, file annual TDS return, and archive the year's data. No special "year close" process is required.

Q40: When should I generate Form 16?

A: Form 16 should be generated and issued to employees by 15th June of the following financial year (e.g., for FY 2023-24, issue by 15th June 2024).

Q41: Can I carry forward leave balances to next year?

A: This is handled in the Leave Management module, not Payroll. However, if you're encashing leaves, add them as earnings in the payroll.

Multi-Location & Departments

Q42: Can I process payroll separately for different branches?

A: Yes, use filters during payroll generation to select specific branch/department. You can also generate separate bank files for each branch.

Q43: Can different departments have different salary components?

A: Yes, salary components are assigned at employee level, so each employee can have different components regardless of department.

Q44: Can I generate department-wise salary reports?

A: Yes, use the Cost Center Report or apply department filter in Salary Register to get department-wise breakup.

Permissions & Access

Q45: Who can approve payroll?

A: Only users with Admin or Partner role can approve payroll. This is a security measure to ensure proper authorization.

Q46: Can I restrict payroll access to specific users?

A: Yes, payroll access is role-based. Admin can configure which user groups have access to payroll module and what actions they can perform.

Q47: Can employees see other employees' salaries?

A: No, employees can only view their own payslips. Only Admin, Partner, Manager, and Accountant roles can view all employees' payroll data.

Miscellaneous

Q48: Can I schedule automatic payroll generation?

A: Currently, payroll must be generated manually. However, you can set up email reminders to notify you when it's time to process payroll.

Q49: What happens if I delete a salary component that's being used?

A: System will not allow you to delete a component that's assigned to employees. You must first remove it from all employee salary structures.

Q50: Can I integrate payroll with accounting software?

A: Yes, you can export payroll data in various formats and import into accounting software. For direct integration, contact ERPCA support.

Still Have Questions?

If your question is not answered here, please:

• Check the relevant section in this manual

• Contact your system administrator

• Reach out to ERPCA support at support@erpca.com