Simple Payroll Example

In this section, we will create a simple payroll example with one column to understand the payroll module better. For this example, we will create a payroll report that contains the basic salary of an employee.

1. Go to Payroll -> Salary and define the salary component type, salary component and employee salary components for basic salary.
2. Next, go to Payroll -> Payroll reports -> Payroll Groups and create a payroll group with a suitable name. For this example, I have named the payroll group as Sample Payroll Group.

3. Now let us create a payroll column for Basic Salary.

Since this is the first and only payroll column, we will set the column order to 1.

4. Once you have created the payroll column, go to the payslip template tab to create a simple template.

To add the payroll column to the payslip template, click on add new, give the template a name and click on the Add button in front of payslip fields and add the column as shown below:

I have added the company logo, name to the payslip template as well. The final sample template is shown below:

5. Now let us add Melba Dowling to our payroll group by going to the Payroll Employees tab.

When adding employees to payroll groups, make sure the pay frequency and the currency is same for all the employees that belongs to the payroll group.

6. Next, go to Payroll Reports tab and create a payroll report as shown below:

Cick on save. When you first create a payroll report, the status of the payroll report will be Draft.

7. Click on Process.

Once you click on process, the status will change to Processing.

In the latest IceHrm versions, the payrolls are processed using a cronjob. So, it will take some time for your payroll to be processed. If you are an IceHrmPro user, please refer to this link to set up the cron: https://icehrm.com/explore/docs/installation/#cron-scheduled-task-for-notifications

8. Refresh your page after a few minutes, once the payroll has been processed, the status should be Processed. Click on the view button to view the processed payroll report.

Since the payroll report values are correct, to generate payslips click on the Generate Payslips button. The status will now change to Completing, once the payslips are generated the status will change to Completed.

9. As an admin you can go to Manage -> Documents -> Employee Payslip to download the generated payslip or employees can go to Documents -> My Documents -> Payslips and download their payslips.

The downloaded payslip is shown below: