How to setup Payslip Items?

Payslip items are specific elements that can appear on payslips. They are necessary so entries on employees’ payslips will be posted to the proper account or accounts. Therefore, you must define at least one payslip item before you can issue your first payslip. Every payslip item must be one of three types:

• Earnings
• Deductions
• Contributions

Set up payroll accounts

Before you can create payslip items, you must add accounts to which they will be posted.

Add these accounts according to instructions in . Payroll accounts can be:

• Expense accounts on the Profit and Loss Statement. Such accounts record the various types of payroll expenses of the business.
  Examples include (Wages, Manufacturing labor, Vacation pay, Holidays, Sales commissions, and Bonuses.)
• All payroll expenses can be combined in a single account, or you can divide them into as many categories as will be convenient for management review.
• Consider whether government authorities require reporting of certain categories of payroll expense when choosing your accounts.
• Liability accounts on the Balance Sheet. These accounts record amounts owed to outside entities, such as tax authorities or benefit funds on behalf of employees.
  Examples include (Employee Security , Income tax withholding, Pension fund salary deferrals, Employee medical insurance premiums, and Employer retirement contributions.)
• Some may represent funds deducted from employees’ pay. Others may represent funds contributed by the business.
• The primary considerations in determining which accounts to establish are who the funds will eventually be remitted to and for what purpose.

NOTE: These accounts can be used to post more than one payslip item or type.

Earnings items

Earnings items are typically wages, salaries, bonuses, commissions, and various allowances you will pay to employees.

1. Go to Settings from side bar menu 
2. "Type" required info in a "Search Box"  at the Top Right Corner
3. Click on Payslips Items 
4. Click New Account Button under Payslip Earnings Items
5. Enter Name as "Basic Salary"
6. Select expense account
   
7. Click Save button 

Deduction items

Deduction items include employee payslip , payroll taxes, insurance premiums, union fees, or wage garnishments you subtract from an employee’s pay. 

1. Go to Settings from side bar menu
2. Click Payslips Items under Payslips tab
3. Click New Account Button under Payslip Deduction Items
4. Enter Name
5. Select Liability account 
6. Click Save button 

Contribution items

Contribution items are paid by an employer and characterized as both earnings and deductions.

Contribution is deducted from gross pay at the same time and subsequently paid into the employee’s account from institute as well.

1. Go to Settings from side bar menu
2. Click Payslips Items under Payslips tab
3. Click New Account Button under Payslip Contribution Items
4. Enter Name
5. Select Expense Account
6. Select Liability account 
7. Click Save button