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Payslips, bank files and accounting entries

Once a payroll run is approved, each employee gets a password-protected PDF payslip by email. The bank gets a transfer file in its own format with a covering letter. The salary posts to each Entity's accounts.

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The problem it solves

Payslips are made in a spreadsheet and mailed one by one, with salaries readable by anyone who sees the attachment.
Every bank wants its upload file in a different layout, so someone retypes the salary list each month.
The accountant types the salary journal by hand and it never quite matches payroll.
Nobody can say quickly how much went to the bank, how much was paid in cash and how much is on hold.

How it works

Set up once on the Entity's Payroll tab: the payslip password rule and what the payslip shows. Add a Bank File Format for each bank you pay from, and the payroll journal and accounts if you post to the accounts.
When the payroll run is approved, the salary entry posts to the accounts by itself. It is one entry for the Entity and month, dated the last day of the pay period.
On the run, press Files and Register. Choose Salary register (Excel) or Bank transfer file, pick the bank format and the payment date, and press Create File. People left out, such as held salaries or missing bank accounts, are listed under Warnings.
Press Bank Letter for the covering letter to the bank. It has the list of accounts, IFSC and amounts, and the total in words, as a PDF letter and an Excel annexure.
Upload the file on your bank's portal. When the bank has paid, press Mark Paid: the payment entry posts and the pay period is locked.
Press Send Payslips. Each employee whose salary is not on hold gets the PDF, opened with their password. They also see the payslip under My Payslips and in the app.

Everything it does

The payslip

Printed on the Entity's letterhead: employee details, PAN, bank (last 4 digits only), paid days and loss of pay days
Earnings, reimbursements, deductions, net pay in figures and words; arrear lines marked
Optional per Entity: employer contributions (off to start with), year to date with PF, professional tax and income tax (on), leave balances (on)
A footer you write

Password and sending

Payslip PDF Password: none, PAN in capitals, or date of birth as DDMMYYYY (the default). Or the employee code, or the first 4 letters of the PAN with the birth day and month
The email tells the employee which password rule applies
Only approved payslips not on hold are sent, to the work email or else the private email
Anyone not reached is listed with the reason; Sent On and Sent To are kept on each payslip

Bank transfer files

Bank File Formats: one per bank, made on a form without code; one comes ready, Generic NEFT upload (CSV)
File type: delimited text (any delimiter) or Excel; header row on or off; the date format your bank wants
Columns in the bank's order, from: employee code and name, account holder name, account number and IFSC. Then employee's bank, amount, amount in paise without decimals, payment date. Also narration with month and Entity, the debit account, employee email, payment mode (NEFT or internal transfer), serial number and fixed text
Own Bank IFSC Starts With: accounts in the same bank are marked for internal transfer
Several paying banks: each employee can be paid from a different bank (Pay From). Each file holds only that bank's payments and says how many are paid from elsewhere
Released salaries that were on hold get their own bank file and bank letter

Bank letter

One letter per paying bank, with letter date, value date and reference; addressee, wording and signatories from the Entity
Each account, IFSC and amount, the total in words and who was left out; Letter (PDF) and Annexure (Excel)

Register and pay sheets

Salary register (Excel): one row per employee, one column per component, gross, deductions, net pay and employer cost, with totals
Payroll > Reporting: Payroll Sheet, Salary Breakup, CTC Comparison and Salary Disbursement (paid, to pay, cash, on hold). Also Salary Summary and Salary Cost, in Excel or PDF

Accounting entries

Works when the Entity has a Payroll Journal; without one, payroll runs and nothing is posted
Run approved: earnings and employer contributions to expense, deductions and employer contributions to their payable accounts, net pay to Salaries Payable per employee
Run marked paid: Salaries Payable to the bank or cash journal set in Salary Paid From
Back to draft or reopened: the entry is reversed with that day's date
Each salary component can have its own expense or payable account, for example PF payable
Loans: paid out, recovered (principal and interest) and waived. They post to Loans and Advances to Staff, Interest on Staff Loans and Staff Loans Waived. A loan type can have its own account

Who uses it

Payroll officerMakes the register and bank files, prints the bank letter, sends the payslips and marks the run paid.

AccountsSets the payroll journal and accounts, and sees the salary and payment entries of each run.

EmployeeOpens the payslip PDF with their password, and sees every payslip under My Payslips and in the app.

HR administratorSets the payslip password rule, what the payslip shows and the bank file formats.

Where you use it

Web: HRMS > Payroll > Runs (Files and Register, Bank Letter, Send Payslips) and Payroll > Payslips. Also Payroll > Reporting and Payroll > Configuration > Bank File Formats
Web: Payroll > My Payslips for each employee
The SmartMy HRMS app: payslips with the breakup and the PDF (built and in testing, not in the app stores yet)
Not connected to any bank: you upload the file on your bank's portal yourself
Not by WhatsApp yet: the payslip message has a WhatsApp template, but WhatsApp delivery is not offered for SmartMy HRMS yet

What you control

Settings

Payslip PDF Password: date of birth (DDMMYYYY) to start with; PAN, employee code, PAN and birth date, or none
Show Employer Contributions on Payslip: off; Show Year-to-date: on; Show Leave Balances: on
Salary Bank File Format and Salary Account (debit) per Entity; Pay From per employee
Bank format: file type, delimiter (comma), date format (%d/%m/%Y), header row (on), columns
Payroll Journal, Salary Paid From and the accounts on the Entity's Payroll Accounting tab

Approvals

Payroll: payslips, files and accounting entries come only from a run that has been approved through its payroll approval steps

Notifications

Payslip Ready: to each employee when payroll sends the payslips, by email with the PDF and in the app's inbox; it cannot be switched off

Questions

Can we use our bank's own upload format?

Yes. Make a Bank File Format for it: the file type, delimiter, date format and the columns in the order your bank asks. No code is needed. One generic NEFT format comes ready to copy.

Does the system send the money to the bank?

No. It makes the file and the covering letter; you upload the file on your bank's portal. A direct link to banks is not built.

What is the payslip password?

You choose it per Entity: date of birth as DDMMYYYY to start with. Or the PAN, the employee code, or the first 4 letters of the PAN with the birth day and month. You can also send it without a password.

Can we design our own payslip?

The payslip comes in one layout on your Entity's letterhead. You choose whether it shows employer contributions, year to date and leave balances, and you write the footer. A payslip designer is not built.

Do we need accounting to run payroll?

No. Payroll works without it. With a Payroll Journal set on the Entity, the salary, payment and loan entries post by themselves.

Related features

PAYROLLPayroll runs, approval and lockRun payroll per Entity and pay period straight from the attendance record, with joiners, leavers and mid-month revisions worked out. Approvers review it on one screen, salaries can be held and released, and a paid payroll is locked and reopened only with a reason.PAYROLLSalary components, structures and revisionsBuild every salary component on a form and group them into templates. Give each employee a salary by annual CTC or monthly gross with the breakup worked out, and keep every revision with its date.LOANS, INCREMENTS, BONUSLoans, advances and recoveries from salarySalary advances and staff loans with your eligibility rules, interest free, flat or reducing balance, recovered through payroll with EMI holidays, pauses, top-ups and foreclosure. Canteen, hostel and shop purchases come off the same payslip, and whatever is left is settled at exit.STATUTORY AND TAX, INDIAPF, ESI, professional tax, LWF and minimum wageEvery payslip works out PF with VPF, pension and EDLI, ESI, professional tax and the labour welfare fund from your Entity's settings. The ECR file, the ESIC sheet, the register of wages and the muster roll come out of the same payroll run.STATUTORY AND TAX, INDIAIncome tax (TDS), declarations and Form 16Each payroll projects the year's salary under the employee's regime and deducts the tax still due, spread over the months left. Employees declare and compare the two regimes, and payroll accepts or rejects their proofs. Form 16 Part B, 12BA, 12BB and the 24Q data come from the same figures.VIEWS AND REPORTSHR reports and the custom report builderHeadcount, attrition, salary cost, leave liability and more than 20 payroll and statutory reports, most of them on screen, in Excel and as PDF. In Scale, HR builds its own reports without code and shares them; each person sees only what their access allows.

See your own month run in it.

Tell us how many people you have, how you take attendance and how your salary is structured. We will show you SmartMy HRMS set up that way.

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