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b/foundation/www/docs/user/manual/en/human-resources/additional-salary.md new file mode 100644 index 00000000..06981678 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/additional-salary.md @@ -0,0 +1,14 @@ + +# Additional Salary + +ERPNext allows you to add additional Salary Components (Is Additional Component) to Salary Slips while processing the payroll. Some examples of Additional Salary could be Performance Bonus, Deputation Allowance, Arrears or other adjustments etc. To create Additional Salary, you can go to - + +> Human resources > Payroll > Additional Salary > New Additional Salary + +Additional Salary + +You can select the Employee to whom you wish to disburse the Additional Salary, the Salary Component and the period for which the employee is entitled to receive the Additional. If the period (From and To dates) consists on multiple payroll periods, the amount will be disbursed on a pro-rata basis. + +> Note: The Salary Component can also be a deduction component which will add the Additional Salary to the Deductions table in the Salary Slip + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/compensatory-leave-request.md b/foundation/www/docs/user/manual/en/human-resources/compensatory-leave-request.md new file mode 100644 index 00000000..6dccb084 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/compensatory-leave-request.md @@ -0,0 +1,13 @@ + +# Compensatory Leave Request +ERPNext allows employees to request for compensatory leaves for days which they have worked on holidays. It is necessary that the dates should be in default Holiday List and also that the Employee should have her attendance marked Present. Note that Leave Types which are marked are **Is Compensatory** can be selected in the Compensatory Leave Request. + +To create a new Compensatory Leave Request, go to +> Human Resources > Leaves and Holiday > Compensatory Leave Request > New Compensatory Leave Request + +Compensatory Leave Request + +On submitting a Compensatory Leave Request, ERPNext updates the Leave Allocation record for the leave type is updated allowing her to apply for leaves of this type later on. + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/employee-benefit-application.md b/foundation/www/docs/user/manual/en/human-resources/employee-benefit-application.md new file mode 100644 index 00000000..f4985669 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/employee-benefit-application.md @@ -0,0 +1,24 @@ + +#Employee Benefit Application + +Employees are entitled to flexible benefits which they can either receive pro-rata (as part of their Salary) or as a lump-sum amount when they claim the benefit. In order to choose from various flexible benefits which an Employee shall receive on a pro-rata basis, the employee should create a new Employee Benefit Application. + +To create a new Employee Benefit Application, + +> Human Resources > Payroll > Employee Benefit Application > New Employee Benefit Application + +Employee Benefit Application + +Here, Employee can view the Max Benefits as per the Salary Structure Assignment and then chose from the Earning Components which are part of the employee's assigned Salary Structure. They can also enter the amount which they wish to receive as part fo their Salary Slip. + +It is based on the Employee Benefit Application that the Max Benefit Amount will be distributed among the flexible earning components while generating the Salary Slip. If an Employee fails to submit the Employee Benefit Application before processing the payroll, the Max Benefit Amount eligible to the employee will be distributed proportionately to each of the flexible component present in the Employee's salary structure. + +> Note: Employees can only submit one Employee Benefit Application for a Payroll Period. + +Employee Benefit Application should cover the full amount which the employee has to receive as per the Max Benefit amount on a pro-rata basis. However, if the Salary Structure of the employee consists of Salary Components which are to be paid on Employee Benefit Claim (Salary Component with **Pay Against Benefit Claim**), they are allowed to submit Employee Benefit Application excluding the amount allocated for such components. + +Also, note that those components which are to be received based on Employee Benefit Claims can also be part of the application, but will only be disbursed lump-sum, as part of their salary when the Employee submits a claim for it. + +> Note: Normal Tax calculation does not include Flexible Benefits as in most cases these are exempted from Tax. To tax these components anytime before the last payroll, use **Deduct Tax For Unclaimed Employee Benefits** in Payroll Entry / Salary Slip while processing the Salary. + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/employee-benefit-claim.md b/foundation/www/docs/user/manual/en/human-resources/employee-benefit-claim.md new file mode 100644 index 00000000..9a53c250 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/employee-benefit-claim.md @@ -0,0 +1,17 @@ + +#Employee Benefit Claim + +Employee Benefit Claim allows Employees to - + 1. Claim flexible benefits which are to be received lump-sum (if Salary Component is **Pay Against Benefit Claim**) + 2. Claim tax exemption for flexible benefits received pro-rata, as part of salary when **Deduct Tax For Unclaimed Employee Benefits** is checked in Payroll Entry / Salary Slip + +You can create a new Employee Benefit Claim by going to, +> Human Resources > Payroll > Employee Benefit Claim > New Employee Benefit Claim + +Employee Benefit Claim + +Here, Employee can view the view the eligible amount as per their Salary Structure Assignment and claim for the amount which they wish to receive as part fo their next Salary. Any remaining amount which the employee did not claim for, in a Payroll Period, will be disbursed as part of the last payroll Salary. + +> Note: Normal Tax calculation does not include Flexible Benefits as in most cases these are exempted from Tax. To tax these components anytime before the last payroll, use **Deduct Tax For Unclaimed Employee Benefits** in Payroll Entry / Salary Slip while processing the Salary. + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.md b/foundation/www/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.md new file mode 100644 index 00000000..75afa187 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.md @@ -0,0 +1,22 @@ + +#Employee Tax Exemption Declaration +At the beginning of a Payroll Period, employees can declare the amount of exemption from their taxable salary they will be claiming at the end of the period by submitting proofs. To create a new Employee Tax Exemption Declaration, go to + +> Human resources > Payroll > Employee Tax Exemption Declaration > New Employee Tax Exemption Declaration + +Employee Tax Exemption Declaration + +The the **Total Exemption Amount** will be exempted from annual taxable earnings of the employee while calculating the tax deductions in Payroll. + +> Note: Employees can only submit one Employee Tax Exemption Declaration for a Payroll Period. + +### Regional - India +For the current fiscal year, in India, House Rent Allowance (HRA) exemption from taxable earnings is the minimum of: + * The actual amount allotted by the employer as the HRA. + * Actual rent paid less 10% of the basic salary. + * 50% of the basic salary, if the employee is staying in a metro city (40% for a non-metro city). + + As part of the Employee Tax Exemption Declaration, employees shall also fill out the HRA Exemption. ERPNext will calculate the exemption eligible for HRA and exempt it while calculating the taxable earnings. + + > Note: HRA component shall be configured in Company for HRA exemption to work diff --git a/foundation/www/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.md b/foundation/www/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.md new file mode 100644 index 00000000..9fda132a --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.md @@ -0,0 +1,24 @@ + +#Employee Tax Exemption Proof Submission +Employees are required to submit proofs for all the spendings they claim tax exemption for. This is usually done at the end of a Payroll Period, but employees can submit any number of proofs unlike Employee Tax Exemption Declaration. + +To create a new Employee Tax Exemption Proof Submission, go to + +> Human resources > Payroll > Employee Tax Exemption Proof Submission > New Employee Tax Exemption Proof Submission + +Employee Tax Exemption Proof Submission + +The the **Total Exemption Amount** will be exempted from annual taxable earnings of the employee while calculating the tax deductions in the last payroll. + +> Note: Even if employees submit exemption proofs anytime during the payroll period, ERPNext will only consider this in the last payroll of the Payroll Period for adjusting the final taxes based on the proof submitted. If you need to adjust any additional tax collected or consider proof submission of employees anytime before the last payroll, while processing Payroll Entry (or in the Salary Slip of the employee) check the **Deduct Tax For Unsubmitted Tax Exemption Proof** option. + +### Regional - India +For the current fiscal year, in India, House Rent Allowance (HRA) exemption from taxable earnings is the minimum of: + * The actual amount allotted by the employer as the HRA. + * Actual rent paid less 10% of the basic salary. + * 50% of the basic salary, if the employee is staying in a metro city (40% for a non-metro city). + +As part of the Employee Tax Exemption Proof Submission, employees shall also submit proof for HRA Exemption. + + > Note: HRA component shall be configured in Company for HRA exemption to work diff --git a/foundation/www/docs/user/manual/en/human-resources/employee_promption.md b/foundation/www/docs/user/manual/en/human-resources/employee_promotion.md similarity index 81% rename from foundation/www/docs/user/manual/en/human-resources/employee_promption.md rename to foundation/www/docs/user/manual/en/human-resources/employee_promotion.md index e9ee00e9..c6df2b7a 100755 --- a/foundation/www/docs/user/manual/en/human-resources/employee_promption.md +++ b/foundation/www/docs/user/manual/en/human-resources/employee_promotion.md @@ -11,6 +11,6 @@ Select Employee and add all details to be updated to Promotion Details table. Employee Promotion -Promotion document can be submitted on or after Promotion Date. Once submitted all the changes added to Promotion Details table will applied to Employee. +Promotion document can be submitted on or after Promotion Date. Once submitted all the changes added to Promotion Details table will be applied to the Employee. ERPNext also keeps a record of all promotions of the Employee in the Employment History table in Employee document. Employee Promotion diff --git a/foundation/www/docs/user/manual/en/human-resources/human-resource-setup.md b/foundation/www/docs/user/manual/en/human-resources/human-resource-setup.md index 2cc69b3a..e8f10c86 100755 --- a/foundation/www/docs/user/manual/en/human-resources/human-resource-setup.md +++ b/foundation/www/docs/user/manual/en/human-resources/human-resource-setup.md @@ -1,8 +1,7 @@ # Human Resource Setup -The HR module has a setup process where you create the masters for all the -major activities. +The HR module has a setup process where you create the masters for all the major activities. ### Organization Setup @@ -19,20 +18,18 @@ To setup your Employee master you must first create: To setup Leaves, create: * Leave Type (like Sick Leave, Travel Leave etc) - * Holiday List (list of annual holidays for the year - these days will not be considered in Leave Applications). + * Holiday List (list of annual holidays for the year - these days will not be considered in Leave Applications) + * Leave Policy to effectively track and manage Employee leaves across the company + +Check [Leaves - Overview](/docs/user/manual/en/human-resources/leave.html) for a detailed description about how you can configure and manage Leaves. ### Payroll (Salary) Setup -In ERPNext, salaries have two types of components, earnings (basic salary, -expenses paid by the company, like telephone bill, travel allowance etc) and -deductions (amounts deducted for taxes, social security etc). To setup -payroll, you must first setup all the different types of earnings and +In ERPNext, salaries have two types of components, earnings (basic salary, expenses paid by the company, like telephone bill, travel allowance etc) and deductions (amounts deducted for taxes, social security etc). To setup payroll, you must first setup all the different types of earnings and deductions. These are * Earning Type * Deduction Type -These are just labels, we will see how to use them when we discuss the payroll -section. - +Read more about setting up your payroll in [Salary and Payroll](/docs/user/manual/en/human-resources/salary-and-payroll.html) and [Setting Up Income Tax Deduction]((/docs/user/manual/en/human-resources/setting-up-tax.html)) {next} diff --git a/foundation/www/docs/user/manual/en/human-resources/index.txt b/foundation/www/docs/user/manual/en/human-resources/index.txt index af420b8d..7dd4b563 100755 --- a/foundation/www/docs/user/manual/en/human-resources/index.txt +++ b/foundation/www/docs/user/manual/en/human-resources/index.txt @@ -1,11 +1,24 @@ employee -leave -employee-advance -expense-claim attendance attendance-request +leave +leave-application +compensatory-leave-request +leave-encashment +employee-advance +expense-claim salary-and-payroll +payroll-period +setting-up-tax +additional-salary +employee-benefit-application +employee-benefit-claim +retention-bonus payroll-entry +employee-tax-exemption-declaration +employee-tax-exemption-proof-submission +shift-management +recruitment appraisal job-applicant job-opening @@ -17,6 +30,7 @@ setup holiday-list human-resource-setup daily-work-summary +health-insurance fleet-management loan-management employee-promotion diff --git a/foundation/www/docs/user/manual/en/human-resources/job-applicant.md b/foundation/www/docs/user/manual/en/human-resources/job-applicant.md index 2a2ffd95..0d2a7b63 100755 --- a/foundation/www/docs/user/manual/en/human-resources/job-applicant.md +++ b/foundation/www/docs/user/manual/en/human-resources/job-applicant.md @@ -1,23 +1,23 @@ # Job Applicant -You can mantain a list of People who have applied for a [Job Opening](/docs/user/manual/en/human-resources/job-opening.html). +You can maintain a list of People who have applied for a [Job Opening](/docs/user/manual/en/human-resources/job-opening.html). -To create a new Job Applicant go to +To create a new Job Applicant go to -> Human Resource > Job Applicant > New +> Human Resource > Recruitment > Job Applicant > New Job Applicant Job Applicant ### Linking with an Email Account You can link Job Application with an Email account. -Suppose you link Job Application with an email job@example.com +Suppose you link Job Application with an email job@example.com system shall create a New Job Applicant against each email received on the mailbox. * To link Email Account with Job Applicant, go to -> Setup > Email Account > New +> Setup > Email > Email Account > New Email Account * Enter the Email Address and the password, and select 'Enable Incoming' @@ -25,4 +25,4 @@ system shall create a New Job Applicant against each email received on the mailb Email Account -{next} \ No newline at end of file +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/job-offer.md b/foundation/www/docs/user/manual/en/human-resources/job-offer.md index d8ea73d6..bba9c0a0 100755 --- a/foundation/www/docs/user/manual/en/human-resources/job-offer.md +++ b/foundation/www/docs/user/manual/en/human-resources/job-offer.md @@ -1,12 +1,12 @@ # Job Offer -Job Offer is given to candidate after Interview & selection which states the offered salary package, +Job Offer is given to selected candidates after Interview & selection which states the offered salary package, designation, grade, department working, no of days entitled for leave. -In ERPNext you can make a record of the Job Offers that you can given to candidates. To create a new Job Offer go to +In ERPNext you can make a record of the Job Offers that you can give to candidates. To create a new Job Offer go to -> Human Resource > Job Offer > New +> Human Resource > Recruitment > Job Offer > New Job Offer @@ -16,4 +16,4 @@ There is a pre-designed print format to print you Job Offer. Job Offer -{next} \ No newline at end of file +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/job-opening.md b/foundation/www/docs/user/manual/en/human-resources/job-opening.md index 4a3584a4..893145ea 100755 --- a/foundation/www/docs/user/manual/en/human-resources/job-opening.md +++ b/foundation/www/docs/user/manual/en/human-resources/job-opening.md @@ -3,11 +3,12 @@ You can make a record of the open vacancies in your company using Job Opening. -To create a new Job Opening go to +To create a new Job Opening go to -> Human Resource > Job Opening > New +> Human Resource > Recruitment > Job Opening > New Job Opening Job Opening +ERPNext allows to plan your recruitment at a group company level. To understand how you can do configure this, check [Recruitment](/docs/user/manual/en/human-resources/recruitment.html) -{next} \ No newline at end of file +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/leave-application.md b/foundation/www/docs/user/manual/en/human-resources/leave-application.md index a64d4504..a9b1d86e 100755 --- a/foundation/www/docs/user/manual/en/human-resources/leave-application.md +++ b/foundation/www/docs/user/manual/en/human-resources/leave-application.md @@ -2,13 +2,13 @@ # Leave Application If your company has a formal system where Employees have to apply for leaves -to be able to qualify as paid leaveas, you can create Leave Application to +to be able to qualify as paid leaves, you can create Leave Application to track approval and usage of leaves. You have to mention the Employee, Leave Type and the period for which the leave is taken. > Human Resources > Leaves and Holiday > Leave Application > New Leave Application -Leave Application +Leave Application ###Setting Leave Approver diff --git a/foundation/www/docs/user/manual/en/human-resources/leave-encashment.md b/foundation/www/docs/user/manual/en/human-resources/leave-encashment.md new file mode 100644 index 00000000..37c55400 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/leave-encashment.md @@ -0,0 +1,15 @@ + +# Leave Encashment + +For Leave Types which are encashable, you can submit Leave Encashment. To create a new Leave Encashment, go to + +> Human Resources > Leaves and Holiday > Leave Encashment > New Leave Encashment + +As you select Employee and Leave Type, Leave Balance and Encashable Days (which is total leave balance less the threshold days set in Leave Type) will be shown along with the Encashment Amount based on the Leave Encashment per day as configured in the Employee's assigned Salary Structure. + +Leave Encashment + +On submitting a Leave Encashment for an Employee, ERPNext automatically creates an [Additional Salary](/docs/user/manual/en/human-resources/additional-salary.html) which will get added to the Salary Slip of the Employee when processing the next payroll + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/leave.md b/foundation/www/docs/user/manual/en/human-resources/leave.md index 01e84abe..909c78d6 100755 --- a/foundation/www/docs/user/manual/en/human-resources/leave.md +++ b/foundation/www/docs/user/manual/en/human-resources/leave.md @@ -28,17 +28,19 @@ requirement. **Include holidays within leaves as leaves:** Check this option if you wish to count holidays within leaves as a ‘leave’. Such holidays will be deducted from the total number of leaves. -**Is Compensatory:** Compensatory leaves are leaves granted for working overtime or on holidays, normally compensated as an encashable leave. You can check this option to mark the Leave Type as compensatory. An Employee can request for compensatory leaves (Compensatory Leave Request) and on approval of such requests, Leave Allocations are created allowing her to apply for leaves of this type later on. +**Is Compensatory:** Compensatory leaves are leaves granted for working overtime or on holidays, normally compensated as an encashable leave. You can check this option to mark the Leave Type as compensatory. An Employee can request for compensatory leaves using [Compensatory Leave Request](/docs/user/manual/en/human-resources/compensatory-leave-request.html) and on approval of such requests, Leave Allocation for this leave type is updated allowing her to apply for leaves of this type later on. **Is Optional:** Check this Optional Leaves are holidays which Employees can choose to avail from a list of holidays published by the company. The Holiday List for optional leaves can have any number of holidays but you can restrict the number of such leaves granted to an Employee in a Leave Period by setting the Max Days Leave Allowed field. **Encashment:** It is possible that Employees can receive cash from their Employer for unused leaves granted to them in a Leave Period. Not all Leave Types need to be encashable, so you should set "Allow Encashment" for Leave Types which are encashable. Leave encashment is allowed only in the last month of the Leave Period. Leave Encashment + src="{{docs_base_url}}/assets/img/human-resources/leave-type-encashment.png"> You can set the **Encashment Threshold Days** field so that the Employees wont be able to encash that many days. These days should be carry forwarded to the next Leave Period so that it can be either encashed or availed. You may also want to set the **Earning Component** for use in Salary Slip while paying out the encashed amount to Employees as part of their Salary. +>Note: On submitting a [Leave Encashment](/docs/user/manual/en/human-resources/leave-encashment.html) for an Employee, ERPNext automatically creates an [Additional Salary](/docs/user/manual/en/human-resources/additional-salary.html) which will get added to the Salary Slip of the Employee when processing the next payroll + **Earned Leave:** Earned Leaves are leaves earned by an employee after working with the company for a certain amount of time. Checking "Is Earned Leave" will allot leaves pro rata by automatically updating Leave Allocation for leaves of this type at intervals set by **Earned Leave Frequency**. For example, if an employee earns 2 leaves of type Paid Leaves monthly, ERPNext automatically increments the Leave Allocation for Paid Leave at the end of every month by 2. The leave allotment process (background job) will only allot leaves considering the max leaves for the leave type, and will round to **Rounding** for fractions. Earned Leave Human Resources > Leaves and Holiday > Leave Period > New Leave Period Leave Period + src="{{docs_base_url}}/assets/img/human-resources/leave-period-1.png"> #Granting Leaves to Employees Leave Management in ERPNext is based on Leave Allocations created for each employee. This means, Employees can only avail as many leaves (of each Leave Type) allocated to them. There are multiple ways by which you can create Leave Allocations for Employees. @@ -95,7 +97,7 @@ Leave Allocation enables you to allot a specific number of leaves to a particula Leave Period helps you manage leaves for a period and also doubles up as a tool to help you grant leaves for a category of employees. The **Grant** button will generate Leave Allocations based on the Leave Policy applicable to each Employee. You can allocate leaves based on Employee Grade, Department or Designation. Also, note that **Carry Forward Leaves** check will enable you to carry forward any unused leaves (for Leave Types with Is Carry Forward turned on) from previous allocations to new ones. Grant Leaves from Leave Period + src="{{docs_base_url}}/assets/img/human-resources/leave-period-2.png"> ###Manual Allocation of leaves > Human Resources > Leaves and Holiday > Leave Allocation > New Leave Allocation @@ -140,3 +142,5 @@ Leave Block List is a list of dates in a year, on which employees can not apply Leave Allocation Tool + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/payroll-entry.md b/foundation/www/docs/user/manual/en/human-resources/payroll-entry.md index 3fb7037f..eacd4dc2 100755 --- a/foundation/www/docs/user/manual/en/human-resources/payroll-entry.md +++ b/foundation/www/docs/user/manual/en/human-resources/payroll-entry.md @@ -11,39 +11,38 @@ In Payroll Entry, 1. Select the Company for which you want to create the Salary Slips. You can also select the other fields like Branch, Department, Designation or Project to be more specific. 2. Check "Salary Slip based on Timesheet" if you want to process timesheet based Salary Slips. - 3. Select the Start Date and End Date or Fiscal year and month for which you want to create the Salary Slips. + 3. Select the Posting Date and the frequency of payroll which you want to create the Salary Slips. 4. Click on "Get Employee Details" to get a list of Employees for which the Salary Slips will be created based on the selected criteria. - 5. Select the Cost Center and Payment Account. - 6. Save the form and Submit it to create Salary Slip records for each active Employee for the time period selected. If the Salary Slips are already created, the system will not create any more Salary Slips. You can also just save the form as Draft and create the Salary Slips later. + 5. Enter the Start and End dates for the payroll period. + 6. You can check "Deduct Tax For Unclaimed Employee Benefits" if you want to deduct taxes for all benefits (Salary Components which are "Is Flexible Benefit") paid to employees till the current payroll + 7. Similarly, "Deduct Tax For Unsubmitted Tax Exemption Proof" allows you to deduct taxes for the earnings which were exempted in the previous payrolls as declared in [Employee Tax Exemption Declaration](/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.html) but the Employee has not submitted sufficient proof [Employee Tax Exemption Proof Submission](/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.html) + 8. Select the Cost Center and Payment Account. + 9. Save the form and Submit it to create Salary Slip records for each active Employee for the time period selected. If the Salary Slips are already created, the system will not create any more Salary Slips. You can also just save the form as Draft and create the Salary Slips later. Payroll Entry -Once all Salary Slips are created, you can check by clicking on "View Salary Slips", if they are created correctly or edit it if you want to deduct Leave Without Pay (LWP). +Once all Salary Slips are created, you can use "View Salary Slips" to verify if they are created correctly or edit it if you want to deduct Leave Without Pay (LWP). After checking, you can "Submit" them all together by clicking on "Submit Salary Slip". +>Note: Submitting Salary Slips will also book the default Payroll Payable account to record the accrual of salary. + ### Booking Salaries in Accounts The final step is to book the Salaries in your Accounts. -Salaries in businesses are usually dealt with extreme privacy. In most cases, -the companies issues a single payment to the bank combining all salaries and -the bank distributes the salaries to each employee’s salary account. This way -there is only one payment entry in the company’s books of accounts and anyone -with access to the company’s accounts will not have access to the individual -salaries. +Salaries in businesses are usually dealt with extreme privacy. In most cases, the companies issues a single payment to the bank combining all salaries and the bank distributes the salaries to each employee’s salary account. This way there is only one payment entry in the company’s books of accounts and anyone with access to the company’s accounts will not have access to the individual salaries. -The salary payment entry is a Journal Entry that debits the total of the -earning type salary component and credits the total of deduction type salary -component of all Employees to the default account set at Salary Component level -for each component. +The salary payment entry is a Journal Entry that debits the total of the earning type salary component and credits the total of deduction type salary component of all Employees to the default account set at Salary Component level for each component. -To generate your salary payment voucher from Payroll Entry, click on, +To generate your salary payment voucher from Payroll Entry, click on - > Make > Bank Entry Payroll Entry -It will ask to enter the Bank Transaction Reference Number and date. All other details will be auto-filled according to your Payroll Entry form. Click on Save and create it. +Payroll Entry will route you to Journal Entry with relevant filters to view the draft Journal Vouchers created. You shall set reference number and date for the transactions and Submit the Journal Entries. + +>Note: For Salary Components which are Flexible Benefits and has "Create Separate Payment Entry Against Benefit Claim" checked, ERPNext will book separate draft Journal Entries. Payroll Entry diff --git a/foundation/www/docs/user/manual/en/human-resources/payroll-period.md b/foundation/www/docs/user/manual/en/human-resources/payroll-period.md new file mode 100644 index 00000000..47c4d7e1 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/payroll-period.md @@ -0,0 +1,14 @@ + +#Payroll Period +A payroll period, in ERPNext, is a period for which Employees get paid for their occupation with the Company. Payroll period helps you define Tax slabs applicable for the period, making it easier to manage changing laws. + +You can create Payroll Period by going to: +> Human Resources > Payroll Setup > Payroll Period > New Payroll Period + +Payroll Period + +You can add multiple tax slabs for the payroll period depending on the tax regulations. Note that you can use fields in Employee document in the **Condition** field to apply tax slabs based on properties of employees. Here is an example of how to define a tax slab for Employees who are aged between 60 and 80 years. + +Payroll Period + +> Note: Configuring Payroll Period is optional if you do not intend to use Flexible Benefits or Tax Slabs diff --git a/foundation/www/docs/user/manual/en/human-resources/staffing-plan.md b/foundation/www/docs/user/manual/en/human-resources/recruitment.md old mode 100755 new mode 100644 similarity index 61% rename from foundation/www/docs/user/manual/en/human-resources/staffing-plan.md rename to foundation/www/docs/user/manual/en/human-resources/recruitment.md index b65dfde1..4da27a3e --- a/foundation/www/docs/user/manual/en/human-resources/staffing-plan.md +++ b/foundation/www/docs/user/manual/en/human-resources/recruitment.md @@ -1,4 +1,6 @@ - +# Recruitment +It is important for enterprises to plan their manpower recruitment for future periods. ERPNext helps you create recruitment plans and create and publish job openings accordingly, making it easy to manage your hiring process. + # Staffing Plan Staffing Plan helps you to plan human resource recruitments for your Company. ERPNext allows you to do this at a group company level helping you efficiently plan and budget new hirings for a period. Job Openings can only be created as per the number of vacancies and budget as per the active Staffing Plan. @@ -16,4 +18,16 @@ Staffing Plan helps you to plan human resource recruitments for your Company. ER Staffing Plan Detail -**Total Estimated Budget** Once you enter the recruitment plan for all the designations, Staffing Plan will draw up the total estimated budget. +**Total Estimated Budget** Once you enter the recruitment plan for all the designations, Staffing Plan will draw up the total estimated budget as per the plan. + +# Job Opening + +You can make a record of the open vacancies in your company using Job Opening. The number of Job Openings you can create for a Designation is restricted according to the Vacancies planned by the Staffing Plan defined for the company or it's parent group company in the hierarchy. + +To create a new [Job Opening](/docs/user/manual/en/human-resources/job-opening.html) go to + +> Human Resource > Recruitment > Job Opening > New + +Job Opening + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/retention-bonus.md b/foundation/www/docs/user/manual/en/human-resources/retention-bonus.md new file mode 100644 index 00000000..f1aee4e9 --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/retention-bonus.md @@ -0,0 +1,12 @@ + +#Retention Bonus +In general, 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 during a particularly crucial business cycle, such as a merger or acquisition, or during a crucial production period. + +However, many enterprises also grant bonus to employees who have worked with them for longer periods. ERPNext allows you to configure Retention Bonus for employees which will alert the HR Manager (or any role as configured in Email Alert) on the event of an employee working for a particular period, say 5 years. + +You can create new Retention Bonus here, +> Human resources > Payroll > Retention Bonus + +Retention Bonus + +{next} diff --git a/foundation/www/docs/user/manual/en/human-resources/salary-and-payroll.md b/foundation/www/docs/user/manual/en/human-resources/salary-and-payroll.md old mode 100755 new mode 100644 index b2a0d0df..2551483b --- a/foundation/www/docs/user/manual/en/human-resources/salary-and-payroll.md +++ b/foundation/www/docs/user/manual/en/human-resources/salary-and-payroll.md @@ -1,27 +1,77 @@ # Salary And Payroll -Salary is a fixed amount of money or compensation paid to an employee by an employer in return for the work performed . +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. To process Payroll in ERPNext, - 1. Create Salary Structures for all Employees. - 2. Generate Salary Slips via [Payroll Entry](/docs/user/manual/en/human-resources/payroll-entry.html). - 3. Book the Salary in your Accounts. +1. Define [Payroll Period](/docs/user/manual/en/human-resources/payroll-period.html) (optional) +2. Create Salary Structure with Salary Components (Earnings and Deductions) +3. Assign Salary Structures to each Employee via Salary Structure Assignment +4. Generate Salary Slips via [Payroll Entry](/docs/user/manual/en/human-resources/payroll-entry.html). +5. Book the Salary in your Accounts. + +### Payroll Period +[Payroll Period](/docs/user/manual/en/human-resources/payroll-period.html), in ERPNext, is a period for which Employees get paid for their occupation with the Company. Payroll period helps you define Tax slabs applicable for the period, making it easier to manage changing laws. + +> Note: Configuring Payroll Period is optional if you do not intend to use Flexible Benefits or Tax Slabs + +### Salary Component +This document allows you to define each Earning and Deduction component which can be used to create a Salary Structure and subsequently create Salary Slip or Additional Salary. You can also configure the type, condition and formula as well as other settings which are discussed below. You should be able to enable various combinations of the following options to configure each component as it fits your Company / Regional policies. + +**Depends on Leave Without Pay:** Leave Without Pay (LWP) happens when an Employee runs out of allocated leaves +or takes a leave without an approval (via Leave Application). If enabled, ERPNext will automatically deduct the +pay in proportion of LWP days divided by the total working days for the month (based on the Holiday List). + +If you don’t want ERPNext to manage LWP, don’t turn on this flag in any of the Salary Components + +**Do not include in total:** If this option is enabled, the component wont be added to the total of the Earnings or Deductions of the Salary Slip + +#### Earning + +Salary Component Earnings + +**Is Additional Component:** This option specify that the component can only be paid as Additional Salary. Examples of this component could be Performance Bonus or pay received for on-site deputation etc. Such components are not considered to be part of normal Salary Structure. Instead, Additional Salary with these components can be submitted as required which will be added to the Salary Slip automatically. + +**Is Tax Applicable:** If a component needs to be considered for Tax calculations specified as per the Payroll Period you may want to enable this option. It would be required that you have a Payroll Period configured with valid Tax Slabs for payroll processing. + +**Is Payable:** Such components can be booked against separate payable accounts and the Accounts shall be configured in the Accounts table + +**Flexible Benefits:** Flexible Benefits are earning components which Employees can choose to receive on a pro-rata basis or annually when they claim for. These are mostly tax exempted, unless the Employee fail to file the claim with adequate bills / documents. If turned on, you can specify the maximum benefit allowed for an employee in a year. Employees can create [Employee Benefit Application](/docs/user/manual/en/human-resources/employee-benfit-application.html) with the ones they opt for. + +>Note: Employee Benefit Application will only allow Employees to only choose from the flexible components which are present in the Salary Structure assigned to the Employee + + - **Pay Against Benefit Claim:** Employees can opt to receive flexible benefits annually via Employee Benefit Claim or along with their salary every month. If you enable this, the amount allocated for the component will be paid as the Employee submits an [Employee Benefit Claim](/docs/user/manual/en/human-resources/employee-benefit-claim.html). Else the amount will be dispersed as part of the Employee's salary on a pro-rata basis. + + - **Only Tax Impact (Cannot Claim But Part of Taxable Income):** Such components are those which the company has already paid to the Employee in cash or by some other means, for example a car purchased for the Employee's use. The Employee cannot claim but is liable to pay tax. The amount allocated for this component will be considered while calculating the taxable income of the Employee. + + - **Create Separate Payment Entry Against Benefit Claim:** Some of the flexible benefits may be legally required to be paid via separate vouchers. If you enable this, while posting the bank entry the amount paid for such components will be posted as a separate entry for each Employee. + +Flexible Salary Component + +> Note: Normal Tax calculation does not include Flexible Benefits as in most cases these are exempted from Tax. To tax these components anytime before that last payroll, use "Deduct Tax For Unclaimed Employee Benefits" in Payroll Entry / Salary Slip while processing the Salary. + +#### Deduction + +Salary Component Deduction + +**Variable Based On Taxable Salary:** If you enable this, the component will be considered as the standard Tax deduction component. Tax will be calculated based on the Tax slabs configured in Payroll Period on all the total taxable salary. ### Salary Structure -The Salary Structure represents how Salaries are calculated based on Earnings -and Deductions. +The Salary Structure represents how Salaries are structured and calculated based on Earnings and Deductions. Salary structures are used to help organizations: 1. Maintain pay levels that are competitive with the external labor market, 2. Maintain internal pay relationships among jobs, 3. Recognize and reward differences in the level of responsibility, skill, and performance, and manage pay expenditures. -The usual components of the salary structure (in India) include: +Usual components of a salary structure (in India) include: __Basic Salary:__ It is the taxable base income and generally not more than 40% of CTC. @@ -43,7 +93,7 @@ __Employee Stock Options:__ ESOPS are Free/discounted shares given by the compan To create a new Salary Structure go to: -> Human Resources > Setup > Salary Structure > New Salary Structure +> Human Resources > Payroll Setup > Salary Structure > New Salary Structure #### Figure 1.1:Salary Structure @@ -51,48 +101,52 @@ To create a new Salary Structure go to: ### In the Salary Structure, - * Select the Employees and enter Base (which is base salary or CTC) and Variable (if applicable) - * Set the starting date from which this is valid (Note: There can only be one Salary Structure that can be “Active” for an Employee during any period) + * Name the salary Structure and set the company, letterhead for Salary Slip printing and frequency of payroll etc. + * Set the starting date from which this is valid (Note: There can only be one Salary Structure that can be “Active” for an Employee during any period). + * Configure Leave Encashment Amount per Day which will be the amount payable to Employees on Leave Encashment requests. + * Max Benefits amount is the maximum amount eligible as Flexible Components to employees. #### Figure 1.2:Salary Structure for Salary Slip based on Timesheet -Salary Structure - -### Salary Slip Based on Timesheet +Salary Slip based on Timesheet + +### Salary Slip Based on Timesheet Salary Slip based on Timesheet is applicable if you have timesheet based payroll system - + * Check "Salary Slip Based on Timesheet" * Select the salary component and enter Hour Rate (Note: This salary component gets added to earnings in Salary Slip) - -### Earnings and Deductions in Salary Structure -In the “Earnings” and “Deductions” tables, you can calculate the values of Salary Components based on, +### Earnings and Deductions in Salary Structure + +In the “Earnings” and “Deductions” tables, you can select the earnings and deductions components The condition and formula configured in Salary Component will be copied by default, but you may change this if required. You may also want to select the Base component in the Earnings table. Note that the amount eligible for each employee should be configured in Salary Structure Assignment. + +If the condition and formula for any of the earnings or deductions are not configured in Salary Component, you can calculate the values of Salary Components based on, * Condition and Formula #### Figure 1.3:Condition and Formula -Salary Structure +Condition and Formula * Condition and Amount - + #### Figure 1.4:Condition and Amount -Salary Structure +Condition and Amount * Only Formula * Only Amount - + #### Figure 1.5:Account Details -Salary Structure +Salary Structure Account * Select Mode of Payment and Payment Account for the Salary Slips which will be generated using this Salary Structure - + Save the Salary Structure. -In conditions and formulas, +In conditions and formulas, * Use field "base" for using base salary of the Employee * Use Salary Component abbreviations. For example: BS for Basic Salary @@ -100,79 +154,80 @@ In conditions and formulas, ### Leave Without Pay (LWP) -Leave Without Pay (LWP) happens when an Employee runs out of allocated leaves -or takes a leave without an approval (via Leave Application). If you want -ERPNext to automatically deduct salary in case of LWP, then you must check on -the “Apply LWP” column in the Earning Type and Deduction Type masters. The -amount of pay cut is the proportion of LWP days divided by the total working -days for the month (based on the Holiday List). - -If you don’t want ERPNext to manage LWP, just don’t click on LWP in any of the -Earning Types and Deduction Types. +Leave Without Pay (LWP) happens when an Employee runs out of allocated leaves or takes a leave without an approval (via Leave Application). If you want ERPNext to automatically deduct salary in case of LWP, then you must check on +the “Apply LWP” column in the Earning Type and Deduction Type masters. The amount of pay cut is the proportion of LWP days divided by the total working days for the month (based on the Holiday List). +If you don’t want ERPNext to manage LWP, leave the LWP unchecked in all of the Earning Types and Deduction Types. * * * +### Salary Structure Assignment + +Salary Structure Assignment allows you to assign salary structure and specify the base pay eligible for each employee. It is important that you set the base salary for each assignment as this will be the base salary used for calculations as per the Salary Structure. + +To create a new Salary Structure Assignment go to: + +> Human Resources > Payroll > Salary Structure Assignment > New Salary Structure Assignment + +Salary Structure Assignment + ### Creating Salary Slips -Once the Salary Structure is created, you can make a salary slip from the same -form or you can process your payroll for the month using Payroll Entry. +Once the Salary Structure is created, you can make a salary slip from the same form or you can process your payroll for the month using Payroll Entry. To create a new Salary Slip go to: -> Human Resources > Setup > Salary Slip > New Salary Slip +> Human Resources > Payroll > Salary Slip > New Salary Slip #### Figure 2: Salary Slip Salary Slip +You can also create salary slip for multiple employees using Payroll Entry: -You can also create salary slip for multiple employees using Process Payroll: +> Human Resources > Payroll > payroll Entry -> Human Resources > Process Payroll +#### Figure 3: Payroll Entry -#### Figure 3: Process Payroll +Payroll Entry -Process Payroll +In Payroll Entry, -In Process Payroll, + 1. Select the Company for which you want to create the Salary Slips. You can also select the other fields like Branch, Department, Designation or Project to be more specific. + 2. Check **Salary Slip based on Timesheet** if you want to process timesheet based Salary Slips. + 3. Select the Posting Date and the frequency of payroll which you want to create the Salary Slips. + 4. Click on "Get Employee Details" to get a list of Employees for which the Salary Slips will be created based on the selected criteria. + 5. Enter the Start and End dates for the payroll period. + 6. You can check **Deduct Tax For Unclaimed Employee Benefits** if you want to deduct taxes for all benefits (Salary Components which are **Is Flexible Benefit**) paid to employees till the current payroll + 7. Similarly, **Deduct Tax For Unsubmitted Tax Exemption Proof** allows you to deduct taxes for the earnings which were exempted in the previous payrolls as declared in [Employee Tax Exemption Declaration](/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.html) but the Employee has not submitted sufficient proof [Employee Tax Exemption Proof Submission](/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.html) + 8. Select the Cost Center and Payment Account. + 9. Save the form and Submit it to create Salary Slip records for each active Employee for the time period selected. If the Salary Slips are already created, the system will not create any more Salary Slips. You can also just save the form as Draft and create the Salary Slips later. - 1. Select the Company for which you want to create the Salary Slips. - 2. Check "Salary Slip based on Timesheet" if you want to process timesheet based Salary Slips. - 3. Select the From Date and To Date or Fiscal year and month for which you want to create the Salary Slips. - 3. Select the Payment Account. - 3. Click on “Create Salary Slips”. This will create Salary Slip records for each active Employee for the time period selected. If the Salary Slips are created, the system will not create any more Salary Slips. All updates will be shown in the “Activity Log” section. - 4. Once all Salary Slips are created, you can check if they are created correctly or edit it if you want to deduct Leave Without Pay (LWP). - 5. After checking, you can “Submit” them all together by clicking on “Submit Salary Slips”. 1. If you want them to be automatically emailed to the Employee, make sure to check the “Send Email” box. +Submitted Payroll Entry + +Once all Salary Slips are created, you can use "View Salary Slips" to verify if they are created correctly or edit it if you want to deduct Leave Without Pay (LWP). + +After checking, you can "Submit" them all together by clicking on "Submit Salary Slip". + +>Note: Submitting Salary Slips will also book the default Payroll Payable account to record the accrual of salary. ### Booking Salaries in Accounts The final step is to book the Salaries in your Accounts. -Salaries in businesses are usually dealt with extreme privacy. In most cases, -the companies issues a single payment to the bank combining all salaries and -the bank distributes the salaries to each employee’s salary account. This way -there is only one payment entry in the company’s books of accounts and anyone -with access to the company’s accounts will not have access to the individual -salaries. +Salaries in businesses are usually dealt with extreme privacy. In most cases, the companies issues a single payment to the bank combining all salaries and the bank distributes the salaries to each employee’s salary account. This way there is only one payment entry in the company’s books of accounts and anyone with access to the company’s accounts will not have access to the individual salaries. -The salary payment entry is a Journal Entry that debits the total of the -earning type salary component and credits the total of deduction type salary -component of all Employees to the default account set at Salary Component level -for each component. +The salary payment entry is a Journal Entry that debits the total of the earning type salary component and credits the total of deduction type salary component of all Employees to the default account set at Salary Component level for each component. -To generate your salary payment voucher from Process Payroll, click on -“Make Bank Entry”. It will ask to enter the Bank Transaction Reference Number and date. -Click on "Make" and a new Journal Entry with the total salary components will be -created. +To generate your salary payment voucher from Payroll Entry, click on - +> Make > Bank Entry -#### Figure 3.1: Make Bank Entry +Payroll Make Entry -Process Payroll +Payroll Entry will route you to Journal Entry with relevant filters to view the draft Journal Vouchers created. You shall set reference number and date for the transactions and Submit the Journal Entries. -
- -
+>Note: For Salary Components which are Flexible Benefits and has "Create Separate Payment Entry Against Benefit Claim" checked, ERPNext will book separate draft Journal Entries. + +Payroll Entry {next} diff --git a/foundation/www/docs/user/manual/en/human-resources/setting-up-tax.md b/foundation/www/docs/user/manual/en/human-resources/setting-up-tax.md new file mode 100644 index 00000000..64ce3dfa --- /dev/null +++ b/foundation/www/docs/user/manual/en/human-resources/setting-up-tax.md @@ -0,0 +1,62 @@ + +#Setting Up Income Tax Deduction +Calculating Tax deductions for employees every month is a time consuming activity for most businesses, especially for large enterprises. If setup properly, ERPNext simplifies most of the tax related calculations by automatically calculating tax deductions while generating Salary Slips. Here's how you can configure ERPNext to ease you payroll processing - + +#Income Tax Exemption +In many countries, especially in India, regulations allow exempting a part (or all) of some type of spendings by individuals from being added to their annual taxable income. Examples of such spendings could be contributions to charitable institutions, amount spent for education of children, specific investments etc. To +avail the exemption from their taxable income, individuals are required to submit proof of such spendings. + +ERPNext allows you to configure Tax Slabs as part of every Payroll Period and the applies tax on each Salary based on projected annual earnings of the employee. Tax thus calculated will be added to the Salary Slip for deduction Salary Component configured **Variable Based On Taxable Salary**. Employees are required to declare the exemption amount they plan to claim at the end of the fiscal year so that the payroll deductions for tax will be calculated based on the projected annual earnings less the exemption. Employees can declare this through [Employee Tax Exemption Declaration](/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.html), the total of which will be exempted from annual taxable earnings of the employee. + +If no declaration is submitted by the employee, the monthly deductions will be calculated without any exemption from the employee's annual earnings. However, if the employee submits a declaration in between the payroll period, from the next payroll onwards the exemption will be applied from the next payroll. Any additional tax collected in earlier payrolls will be adjusted in the last payroll or when using **Deduct Tax For Unsubmitted Tax Exemption Proof** in Payroll Entry or Salary Slip. + +Also, at the end of the year employees submit the actual proof of the spendings for filing via [Employee Tax Exemption Proof Submission](/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.html). In the last payroll of the Payroll Period, ERPNext checks for proof submissions of employees and if not found, tax for the exempted income will be aded to the standard deduction component. + +###Employee Tax Exemption Category +Exemptions from taxable salary are usually restricted to spendings on particular categories decided by government or regulatory agencies. ERPNext allows you to configure various categories which are allowed to be exempted. Examples of this could be, for India, 80G, 80C, B0CC etc. + +You can configure Employee Tax Exemption Category by going to, +> Human resources > Payroll Setup > Employee Tax Exemption Category > New Employee Tax Exemption Category + +Employee Tax Exemption Category + +###Employee Tax Exemption Sub Category +Under each category, there could be many heads for which the exemptions are allowed. For example, in India, sub categories under 80C could be Life Insurance Premium + +You can configure Employee Tax Exemption Sub Category by going to, +> Human resources > Payroll Setup > Employee Tax Exemption Sub Category > New Employee Tax Sub Exemption Category + +Employee Tax Exemption Sub Category + +###HRA Exemption - Regional, India +For the fiscal year 2018-19, in India, House Rent Allowance (HRA) exemption from taxable earnings is the minimum of: + * The actual amount allotted by the employer as the HRA. + * Actual rent paid less 10% of the basic salary. + * 50% of the basic salary, if the employee is staying in a metro city (40% for a non-metro city). + + As part of the Employee Tax Exemption Declaration, employees shall also fill out the HRA Exemption. ERPNext will calculate the exemption eligible for HRA and exempt it while calculating the taxable earnings. + + > Note: Basic and HRA salary component shall be configured in Company for HRA exemption to work + +###Options in Payroll Entry and Salary Slip +ERPNext simplifies payroll processing by automatically processing payroll in bulk via [Payroll Entry](/docs/user/manual/en/human-resources/payroll-entry.html). + +* Deduct Tax For Unclaimed Employee Benefits: Flexible benefits (Salary Components which are **Is Flexible Benefit**) are not included in the taxable income of the employee. However, the amount received for these components will be included in the taxable earnings of the employee if she fails to submit [Employee Benefit Claim](/docs/user/manual/en/human-resources/employee-benefit-claim.html) while calculating tax in the last payroll of the Payroll Period. + +If you wish to collect tax for benefits before the last payroll, check this option and ERPNext will recalculate the tax and add the tax for all untaxed benefits while generating the Salary Slip. + +* Deduct Tax For Unsubmitted Tax Exemption Proof: This option allows you to deduct taxes for the earnings which were exempted in previous payrolls as declared in [Employee Tax Exemption Declaration](/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.html) but the Employee has not submitted sufficient proof via [Employee Tax Exemption Proof Submission](/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.html). It is to be noted that if this option is checked ERPNext does not consider the Employee Tax Exemption Declaration by employees and will only take into account **Employee Tax Exemption Proof Submission** instead, while calculating exemption from employees' annual earnings. + +>Note: If required, you can still process payroll for employees individually, by manually creating a new Salary Slip and both these options are made available in the Salary Slip + +#Payroll Period +[Payroll Period](/docs/user/manual/en/human-resources/payroll-period.html) helps you define Tax slabs applicable for the period, making it easier to manage changing laws. You can add multiple tax slabs for the payroll period depending on the tax regulations. Note that you can use fields in Employee document in the **Condition** field to apply tax slabs based on attributes of employees. + +#Salary Component +To enable automatic tax deduction based on Tax slabs configured in Payroll Period, you have to configure a Salary Component of type **Deduction** with **Variable Based On Taxable Salary** option enabled. If you enable this, the component will be considered as the standard Tax deduction component and tax will be calculated based on the Tax slabs configured in Payroll Period on all the total taxable salary. + +**Important Note:** If you configure condition and formula for this Deduction component, the condition and formula will be considered for calculating the Salary Component and the Tax Slabs configured in Payroll Period will be ignored. However, you can still use **Deduct Tax For Unsubmitted Tax Exemption Proof** option in Payroll Entry / Salary Slip to deduct taxes based on the Tax Slabs configured in Payroll Period, exempting [Employee Tax Exemption Proof Submission](/docs/user/manual/en/human-resources/employee-tax-exemption-proof-submission.html) which will give precedence to the Tax Slab based tax deduction. + +This is particularly helpful if you need to deduct a fixed amount as deduction in each payroll rather than ERPNext automatically calculating the deductions based on projected annual salary of the employee after exemption as declared by the employee via [Employee Tax Exemption Declaration](/docs/user/manual/en/human-resources/employee-tax-exemption-declaration.html). At the end of the fiscal year, you can still use **Deduct Tax For Unsubmitted Tax Exemption Proof** to deduct the remaining tax liability of the employee for the whole period. + +{next}