Payroll Run

About the payroll run tool

How to run monthly payroll in VyaparKit

1. 1

   Set up employees once

   Under Employees, add each person with their salary structure (basic, HRA, allowances), PF and ESI applicability, UAN and ESI numbers, state for professional tax, bank account and IFSC.

2. 2

   Start the run

   Go to Payroll, then Payroll Run, choose the month and confirm the working days (26 or the calendar days, whichever your policy uses).

3. 3

   Enter paid days per employee

   The grid lists everyone with full paid days by default. Reduce for loss-of-pay leave, and set the joining or leaving date proration for anyone who joined or left mid-month. Earnings and deductions recompute as you type.

4. 4

   Review and override

   Check PF, ESI and PT per employee. Use Override for one-off items such as an incentive, an advance recovery, arrears or a TDS amount your CA gave you, with a note that appears on the slip.

5. 5

   Finalise

   Click Finalise. The run locks, a salary slip is created for each employee, and the payroll register PDF is ready with the month's totals for PF, ESI and PT.

6. 6

   Pay and file

   Download the NEFT bulk Excel in your bank's layout, upload it to net banking, and share the slips on WhatsApp or email. Use the register to file the PF ECR and ESI return and deposit both by the 15th.

What a monthly payroll run must get right

• Working days and paid days per employee, with proration for joiners, leavers and loss-of-pay leave.
• PF at 12 percent of basic (and DA) from the employee and 12 percent from the employer, with the option to cap wages at ₹15,000 for the employer share; PF applies to establishments with 20 or more employees, though many smaller ones register voluntarily.
• ESI at 0.75 percent from the employee and 3.25 percent from the employer on gross wages up to ₹21,000, for establishments with 10 or more employees (state dependent); an employee who crosses ₹21,000 stays covered until the end of the contribution period.
• Professional tax by the state slab where the employee works (for example Maharashtra up to ₹200 a month and ₹300 in February; Karnataka ₹200 for salary above ₹25,000).
• TDS on salary under Section 192 where the employee's projected income exceeds the basic exemption; compute it with your CA and enter it as an override.
• Overrides with a reason: incentives, arrears, advance recovery, reimbursements, notice pay.
• Net pay per employee rounded to the rupee, matching the amount in the bank file.
• A payroll register with totals by component, which is the source for PF ECR, ESI return, PT payment and the books.
• Deposit deadlines: PF and ESI by the 15th of the following month; PT and TDS by the state's and the Income Tax Act's dates (TDS by the 7th).

Who uses the payroll run

Payroll Run: frequently asked questions

How is PF calculated on salary each month?

Employee contribution is 12 percent of basic plus dearness allowance. The employer also contributes 12 percent, of which 8.33 percent goes to the pension scheme (on wages up to ₹15,000) and the rest to PF. Many employers restrict the employer share to the ₹15,000 wage ceiling; contributing on full basic is allowed. VyaparKit applies the ceiling if you switch it on for the employee.

Who is covered under ESI and what are the contribution rates?

ESI applies to employees earning gross wages up to ₹21,000 a month (₹25,000 for persons with disabilities) in establishments with 10 or more employees in most states. The employee contributes 0.75 percent and the employer 3.25 percent of gross wages. Once an employee's wages cross the limit, contributions continue until the end of the current six-month contribution period.

What is professional tax and who deducts it?

Professional tax is a state levy on salaried persons and professionals, deducted by the employer and deposited with the state. Slabs differ: Maharashtra deducts up to ₹200 a month with ₹300 in February for salaries above ₹10,000; Karnataka ₹200 a month for salaries above ₹25,000; several states such as Delhi and Haryana have none. The tool applies the slab of the employee's state.

How is salary prorated for an employee who joins or leaves mid-month?

Paid days are counted from the joining date or up to the leaving date, and each salary component is multiplied by paid days divided by the month's working days. If an employee with ₹30,000 gross joins on the 16th of a 30-day month, paid days are 15 and gross is ₹15,000. PF and ESI are then computed on the prorated amounts.

What is a NEFT bulk upload file and which banks are supported?

A bulk upload file is an Excel that lists each employee's account number, IFSC, name and net pay, uploaded once to net banking so the bank pays everyone in one batch instead of individual transfers. VyaparKit produces a generic layout plus HDFC, ICICI and SBI formats. For other banks, download the generic file and map the columns to your bank's template.

Does the payroll run compute TDS on salaries?

The run computes PF, ESI and professional tax automatically. TDS under Section 192 depends on the employee's declared investments, regime choice and projected annual income, so compute it with your CA and enter the monthly figure as an override for that employee. It then appears as a deduction on the slip and in the register.

What happens when I finalise a payroll run?

The run is locked, one salary slip is created for every employee in it, the payroll register PDF becomes available, and the NEFT bulk Excel can be downloaded. Finalise only after checking paid days and overrides, because slips are generated at that point. On the Free plan, one run a month for up to 3 employees is included.