Payroll Module
Salary is a fixed amount of money or compensation paid to an employee by an employer in return for the work performed.
Payroll is the administration of financial records of employees’ salaries, wages, bonuses, net pay, and deductions. A Payroll Period is a period for which Employees get paid for their occupation with the Company.
Salaries are paid by organizations to their employees in exchange for the services rendered by them. The different components that make up the Salary Structure are called as Salary Components.
Salary paid to the employees comprises of several different components, such as basic salary, allowances, arrears, etc. ERPNext allows you to define these Salary Components and also specify its various attributes.
Salary Structure is the details of the salary being offered to an Employee, in terms of the breakup of the different components constituting the compensation.
Any changes to the Salary Structure i.e. among the components can have a major impact on what the Employee does, such as the kind of tax exemptions claimed.
Salary Structure Assignment form allows you to assign a particular Salary Structure to the employee.
In the system, you can create multiple Salary Structure Assignments for the same Employee for different periods.
A salary slip is a document issued to an employee. It contains a detailed description of the employee’s salary components and amounts.
In the system, Payroll Entry enables bulk processing of payroll for employees. In other words, processing salary slips of all employees in one go. The bulk processing can be Company-wide or based on these categories: Branch, Department, or Designation.
Additional Salary is something that an Employee receives from the company they work for, other than their usual pay.
System offers you a feature called Additional Salary to add or deduct ad hoc salary for a particular Employee while processing the Payroll. Some examples of Additional Salary could be Performance Bonus, Deputation Allowance, Arrears, Incentives, or other adjustments.
Retention bonus is a payment or reward outside of an employee’s regular salary that is offered as an incentive to keep a key employee on the job.
System allows you to configure Retention Bonus for an Employee for a particular period.
Employee Incentives are a way of compensating and motivating employee performance apart from the usual salary.
When an organization wants to encourage productivity among its employees, one of the options available is rewarding the Employee with an incentive. System allows you to create Employee Incentives as and when required for a particular payroll entry.
