The monthly cycle
Payroll repeats the same steps every month. Collect the inputs, calculate gross pay, apply deductions, review the result, approve it, pay it and keep the records.
- Inputs: attendance, leave, overtime, new joiners, leavers, loans and reimbursements
- Gross pay: salary components, allowances and any arrears
- Deductions: income tax, EOBI and social security where applicable, loans and other deductions
- Net pay and review: compare with last month and investigate large changes
- Approval and payment: authorise, then pay by bank transfer or file
- Records: payslips, statutory statements and an accounting entry
Where mistakes enter
Most errors come from inputs that change late: a joiner whose start date moved, unpaid leave entered after the run, a salary revision applied from the wrong month. Reviewing the difference against the previous month catches many of them before money moves.
Statutory amounts
Tax slabs, contribution rates and wage bases are set by law or notification and are revised over time, sometimes differently by province. Confirm the current figures with your accountant or the official source before configuring them.
After the run
Reconcile what the bank paid with what payroll calculated, file statutory statements as your obligations require, and keep payslips available to employees.