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Configure Payroll Settings

Payroll settings control how often you pay, how overtime and leave affect net pay, whether tax is calculated, and which ledger accounts receive the accrual. Save settings before your first payroll run.

Open Settings

Go to Payroll → Payroll settings.

Core pay rules

AreaPurpose
Payroll frequencyMonthly, bi-weekly, or weekly (drives period options)
Pay day / cut-off dayWhen salaries are paid; attendance cut-off
Working days per monthUsed for per-day leave or absence deductions
Enable prorationPay only for days worked when joining or leaving mid-period
OvertimeEnable flag, regular multiplier (default 1.5×), holiday multiplier (default 2×)
Leave deductionsDeduct unpaid leave and/or absent days
ApprovalRequire approval before posting; optional auto-post after approval

GL accounts

Map the accounts finance expects when you post a run:

AccountTypical use
Salary expenseGross salary accrual
Employee payableNet amounts owed to staff
Tax withholdingTax held from pay
Overtime expense (optional)Separate overtime cost; otherwise overtime can use salary expense

Without these accounts (and Accounting enabled), Post to accounting will fail on an approved run.

Tax slabs

When tax calculation is enabled:

  1. Set a tax profile name and jurisdiction if your company uses them.
  2. Paste slab JSON, or use Load Default Sample for a starter progressive configuration.
  3. Default mode annualizes monthly taxable earnings, applies brackets, then divides by twelve for the period withholding.

:::warning Confirm rates with an advisor Sample slabs are for configuration practice. Have a payroll advisor review rates before live payroll. :::

Country compliance

  1. In Payroll settings, enable Country Compliance Framework, set the ISO-2 country code, and optionally pick an active pack.
  2. Open Payroll → Country packs to install a registered pack (effective dates, certification status, optional JSON overrides).
  3. On each employee’s Tax Profile tab, set country, jurisdiction, residency, filing status, and tax identifier when needed.

Sample packs are for pilots — certified filing packs ship in later phases. Review rates with your advisor before go-live.

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