How to Set Up Salary and Leave Heads In My Payroll Master

Setting up different salary components and salary heads for each employee is quite simple in My Payroll Master. In this video, let's focus on how to set up salary and leave heads. We are showing how to create salary components or salary heads and leave types of your employee—like basic,Dearness Allowance, House Rent Allowance, Casual Leave, and Privilege Leave etc.

Follow these simple steps and set up salary and leave heads and make managing salary and leave of employees easier and faster.

To set up salary and leave heads for your company, go to Company Setup ->Click on Salary and Leave Heads ->To create salary heads, go to Salary Heads New button -> Give Salary Head Name-> In Operator, add whether Salary Head Name is deduction or addition -> Select any of the Head Type needed from options such as Fixed, Variable, Reimbursements, Contributions, Leave etc-> Click Save button,Then select the salary head

Next we are going to create Head Items.

► For this, click the New button. The items we are giving will be addition to the salarybecause, we selected the operator as Addition when we were creating Salary Heads

Next is give Item Name.

►Select the Item Type—Limit, Fixed, Manually or Formula

► If you are selecting Limit, give Limit value in the column Value.

► If you are selecting Fixed, give the Fixed value

► If you are selecting Manually, enter value as 0. Because, we are entering variables according to employee’s salary.

► If you are selecting formula, enter value as 0. When you are creating Salary Structure, give formula there.

► Next is Give Comment

In slaray slip section, Choose Yes or No. If you are giving Yes, the salary details will be visible to the employee.

Next section is Item Part.

► It is either Direct or Indirect.

► If you are selecting Direct, it means the monetary compensation an employer pays to their workers. Indirect means the non-monetary compensation from an employer to the employee. For example, health insurance, retirement compensation etc.

► Save them. It will become active only if you click on the check box.

► Like this you can create different salary heads and also different head items.

Next is creating Leave Items, In this, you must give operator as deduction.Because, leave will be debited from your leave balance.

Give item name -> Next is item type ->Add short name-> Add comment-> Specify in the item part whether it's direct or indirect-> If you are choosing Direct, you can set yearly balance or monthly balance as you wish -> If you are giving indirect, it means no restrictions for leave count. Here, it's not working according to leave balance -> It will become active only if you click on the check box.

►In heads for benefits, we can create heads for benefits given to the employees such as ESI, PF etc.

►In Heads for Deductions, we can create heads for deductions selected from the employee like PF, ESI etc.

►In Heads for Annual Earnings, we can create the components coming annually like Bonus, Performance Incentives etc.

The heads creating here will be displayed in the salary structure and leave policy.