## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-ae/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Salary Components

The salary of employees may comprise of several different earnings, deductions, corrections and benefits. In this section of settings, you can:

> **Note**:  After payroll is set up for the components you’ve associated with one or more employees, you can only edit the Name and Amount/Percentage. The changes made to Amount/Percentage will apply only to new employees.

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## Add Earning

Any money that an employee receives as an income is termed as an earning. Some of the common earning components are Housing Allowance, and other applicable allowances. 

*   Go to **Settings** on the left sidebar and select **Salary Components**.
*   Click **Add Component** and select **Earning**.

![Salary Components](/payroll/help/ae/settings/earning-navigation.png)

*   Select an **Earning Type**. If none of the options fit your requirements, choose **Custom Allowance**.
    
*   Enter the name of the earning which will be displayed on payslips.
    
*   Select the **Pay Type**.
    
    *   **Fixed Pay**: A fixed amount will be paid each month.
    *   **Variable Pay**: You can enter the amount for a month while running payroll.
*   Choose whether you want to calculate this earning on a pro-rata basis. Pro-rata basis means the employee will be compensated based on the number of days they’ve worked.
    
*   Select the **Calculation Type** and **Amount/Percentage**.
    

**Insight:** If you’ve selected “Custom Formula” as the calculation type, you can input variables based on the number of days, hours, or units while adding components for the custom formula.

Day and Hour-Based Custom Formulas allow you to define the number of days or hours as relevant input variables, enabling you to calculate earnings based on a given time period. As for Unit-Based Custom Formulas, you can define units as a relevant input variable, enabling you to calculate commissions based on units sold, determine bonuses tied to specific achievements, and allocate allowances for unique job functions.

*   Check **Mark this as Active** option.
*   Click **Save**.

![Salary Components](/payroll/help/ae/settings/new-earning.png)

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### Scheduled Earnings

One Time Scheduled Earning is a feature in Zoho Payroll that allows you to schedule variable pay salary components to be paid in any upcoming payrolls and the ones in draft status. With this feature, you can schedule one-time payments to be disbursed on a specific month, and Zoho Payroll will include these scheduled earnings in the pay run of the month you’ve specified.

For instance, you might have unique incentives or special bonuses that you want to pay to your employees, but these payments are separate from their regular monthly salaries. You can schedule these payments for various one-time incentives, bonuses, and unique variable payments.

**Scenario:** Ajmal, the head of the payroll team at Zylker Middle East, welcomes Aisha, a new analyst, to the company. To show appreciation, the management offers Aisha a joining bonus. Using One Time Scheduled Earning in Zoho Payroll, Ajmal configures the joining bonus to be paid in the upcoming payroll run for Aisha. The bonus is included in the scheduled payout month, ensuring Aisha receives it promptly on her first payday, making her feel valued and motivated.

**Note:** This feature is only available in early access. Contact [support@zohopayroll.com](mailto:support@zohopayroll.com) to get access for your organisation.

*   [Scheduling earning](/en-ae/payroll/help/employer/settings/set-salary-components.html#add-schedule)
*   [Updating scheduled earnings while processing pay runs](/en-ae/payroll/help/employer/settings/set-salary-components.html#update-schedule)
*   [Scheduled earnings during full and final settlement payroll](/en-ae/payroll/help/employer/settings/set-salary-components.html#schedule-termination)

You can schedule existing earnings by enabling the option for scheduling earnings. Alternatively, if you wish to create a new earning that needs to be scheduled, you can do so as well.

### Scheduling earnings

To schedule earnings for your employees, you will have to mark the earnings in your salary components as a scheduled earning. Here’s how:

*   Go to **Settings** in the top right corner and select **Salary Components.**

![Salary Components](/payroll/help/ae/settings/schedule-earning-navigation.png)

*   Switch to the **Earnings** tab.
*   Select an Earning with Variable as the Calculation Type.
*   Select **This is a scheduled earning.**
*   Click **Save.**

![Salary Components](/payroll/help/ae/settings/schedule-earning-details.png)

**Note:** You will not be able to schedule earnings for which the calculation type is fixed.

Once you mark an earning as scheduled, you will be able to schedule the earning to be paid on the month of your choice in the employees’ salary details page.

### Scheduling earnings for an employee

Here’s how you can schedule earning for an employee. Here’s how:

*   Click **Employees** on the left sidebar and select an employee.
*   Switch to the salary details tab.
*   Click **\+ Add** in the top right corner and **Scheduled Earning**.

![Salary Components](/payroll/help/ae/settings/employee-schedule-earning.png)

*   Select an earning.
*   Enter the annual amount and payout month.
*   Click **Save.**

![Salary Components](/payroll/help/ae/settings/select-schedule.png)

**Pro-tip:** You can select **\+ New Scheduled Earning** if you do not find the earning you’re looking for.

Once you’ve added the earning to the employee’s salary details, you will be able to edit or delete it.

![Salary Components](/payroll/help/ae/settings/unpaid-schedule-details.png)

### Importing scheduled earnings

When dealing with multiple scheduled earnings, you can efficiently import them into Zoho Payroll. Here’s how:

*   Click **Employees** on the left sidebar.
*   Click the **More** icon in the top right corner and click **Import Data**.

![Schedule Earning](/in/payroll/help/images/settings/import-scheduled-earning.png)

*   Select **Employee Scheduled Earnings** as the import type.
*   Click **Proceed.**

Upload the file containing the list of scheduled earnings. If you are unsure of the format, refer the image below.

![Schedule Earning](/in/payroll/help/images/settings/import-earning-ctc.png)

*   Select how you want to handle duplicate entries.
*   Map the import file fields with the fields in Zoho Payroll and click **Import.**

The file will be imported and the scheduled earning details will be mapped against each employee.

### Updating scheduled earnings while processing pay runs

Once you schedule the earning to be paid on the payroll you’ve specified, the scheduled earning will be processed on that payroll. However, if you would like to make any last minute changes to the scheduled earning details, you can make them while processing the payroll. Here’s how:

*   Click **Pay Runs** on the left sidebar.
*   Click **View Details** next to the payroll.
*   Select the employee for whom you would like to update the scheduled earning details.
*   Update the amount for the scheduled earning under Earnings section.
*   Click **Save.**

![Salary Components](/payroll/help/ae/settings/update-schedule.png)

This updated amount will be paid to your employee as the One-Time scheduled earning.

### Scheduled earnings during full and final settlement payroll

In the event of an employee’s termination, any unpaid scheduled earnings after the termination date will be automatically included in their full and final settlement payroll. You have the option to override or skip these payments as needed.

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### Benefit Plans

You can add the benefit plans that promote the welfare of your employees such as medical benefits and other benefits.

> **Note**: Zoho Payroll does not deposit the deductions to the vendors on your behalf. You would have to deposit the deductions by yourself.

*   Go to **Settings** on the left sidebar and select **Salary Components**.
*   Click **Add Component** and select **Benefits**.

![Salary Components](/payroll/help/ae/settings/benefit-navigation.png)

*   Select a Benefit Plan.
*   Enter the name you wish to display on the payslips you send to employees for this benefit plan.
*   Check **Mark this as Active** option. 
*   Click **Save**.

![Salary Components](/payroll/help/ae/settings/new-benefit.png)

You can associate this deduction to your employees from the employee details page or during pay runs.

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### Add Deductions

A deduction is money deducted from your employees’ pay. For example, purchases made in the company grocery store or food court are deductions. 

> **Note**: In Zoho Payroll, you can make one-time deductions or recurring deductions.

*   Go to **Settings** on the left sidebar and select **Salary Components**.
*   Click **Add Component** and select **Deduction**.

![Salary Components](/payroll/help/ae/settings/deduction-navigation.png)

*   Enter the name of the deduction.
*   Select whether it is a one-time or a recurring deduction.
*   Mark the component as active.
*   Click **Save**.

![Salary Components](/payroll/help/ae/settings/new-deduction.png)

You can associate this deduction to your employees from the employee details page or during pay runs.

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## Add Correction

Once you’ve associated earnings to employees, you won’t be able to edit them. In such cases, you can create a one-time correction component to make corrections to an earning component.

*   Go to **Settings** on the left sidebar and select **Salary Components**.
*   Click **Add Component** and select **Correction**.

![Salary Components](/payroll/help/ae/settings/correction-navigation.png)

*   Select the earning type that you want to correct.
*   Enter the name of the correction.
*   Check **Mark this as Active** option.
*   Click **Save**.

![Salary Components](/payroll/help/ae/settings/new-correction.png)

You can now add these correction components if needed for specific employees while processing your pay runs.

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## Edit Component

You can edit salary components, provided it isn’t involved in any pay runs. If you have pay runs in draft or approved status, delete them and then edit salary components.  To edit component:

*   Go to **Settings** on the left sidebar and select **Salary Components**.
*   Click the **More** icon next to the salary component that you want to edit.
*   Make the necessary changes.
*   Click **Save**.

The changes will be applicable only to the new employees.

![Salary Components](/payroll/help/ae/settings/edit-component.png)