## Documentation Index

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

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

# Manage Employee Compensation Details

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The **Compensation** tab in the **Employees** module helps you with the compensation details of an employee. This includes:

*   [Salary and wages](/us/payroll/help/employer/employees/manage-employee-compensation-details.html#salary-and-wages)
*   [Benefits](/us/payroll/help/employer/employees/manage-employee-compensation-details.html#benefits)
*   [Deductions](/us/payroll/help/employer/employees/manage-employee-compensation-details.html#deductions)
*   [Sick leave policy](/us/payroll/help/employer/employees/manage-employee-compensation-details.html#sick-leave-policy)
*   [Vacation leave policy](/us/payroll/help/employer/employees/manage-employee-compensation-details.html#vacation-leave-policy)

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## Salary and Wages

The **Salary and Wages** section displays the amount an employee earns as regular pay in a pay period.

**Insight:** Regular pay refers to the fixed portion of an employee’s income, typically set as an hourly rate or annual salary, excluding overtime or additional pay.

### Edit an Employee’s Regular Pay

If you need to correct an error in the regular pay amount or update it due to a raise, you can easily make the changes in Zoho Payroll.

To edit the regular pay of an employee:

1.  Go to the **Employees** module.
2.  Click the employee’s name.
3.  Navigate to the **Compensation** tab.
4.  Click **Edit** next to _Regular Pay_.

![Edit the Regular Pay of an Employee](/payroll/help/us/employees/manage-employee-compensation-details/edit-regular-pay-of-employee.png)

5.  Enter the updated **Amount**.
6.  Click **Save**.

Once saved, the updated regular pay will reflect in the upcoming payrolls.

### Multiple Pay Rates for an Employee

**Note:** This feature is available only for certain plans of Zoho Payroll. Visit our [pricing page](/us/payroll/pricing/) to check if it’s available in your current plan.

If an employee performs multiple roles in your organization, you may want to compensate them differently for each role. For example, a Subject Matter Expert (SME) in an ed-tech company may also take on an additional role as a Course Instructor.

Zoho Payroll allows you to manage this complexity by adding multiple pay rates for the same employee.

To add an additional pay rate for an employee:

1.  Go to the **Employees** module.
2.  Click the employee’s name.
3.  Navigate to the **Compensation** tab.
4.  Under _Salary and wages_, Click **\+ Earning**.

![Add Multiple Pay Rates for Your Employees in Zoho Payroll](/payroll/help/us/employees/manage-employee-compensation-details/multiple-pay-rates-for-employee.png)

5.  In the pop-up that appears, select the **Job Role**, enter the corresponding **Amount**, and click **Save**.

![New Earning Rate for Your Employees in Zoho Payroll](/payroll/help/us/employees/manage-employee-compensation-details/new-earning-rate-for-employee.png)

This way, you can add as many pay rates as needed for each role an employee performs. These additional pay rates can be [included while processing a payroll](/us/payroll/help/employer/pay-runs/regular-payroll.html#add-hours-for-additional-job-roles).

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## Benefits

Benefits are additional compensation or perks provided to employees beyond their regular wages or salary. Certain benefits may have special taxability rules and, in some cases, need to be reported differently on tax returns and employee W-2s.

Zoho Payroll helps you manage and streamline the process of offering benefits to employees, ensuring that the correct tax treatment and reporting are applied automatically.

### Assign Benefits to an Employee

**Prerequisites:** You must have configured benefits at the organization level to be able to assign benefits to employees. If you haven’t configured it already, [learn how](/us/payroll/help/employer/benefits/).

To assign a benefit to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the _Compensation_ tab.
4.  Follow one of these steps:
    *   Click **Add** at the top right and select **Benefit**.
    *   If you have not assigned any benefits to the employee, click **Benefits** under _You can also add following to the employee_.
    *   If you’ve already assigned benefits to the employee, click **Add New** next to _Benefits_.

![Add Benefit for Employee Button](/payroll/help/us/employees/manage-employee-compensation-details/add-benefit-for-employee-button.png)

5.  In the popup that appears, select a benefit plan from the **Benefit Name** dropdown.
6.  Enter **Employee’s Contribution** and **Employer’s Contribution**. You can select either a fixed amount or a percentage of the employee’s gross pay.

![Add Benefit for Employee](/payroll/help/us/employees/manage-employee-compensation-details/add-benefit-for-employee.png)

7.  Click **Save**.

The benefit will be assigned to the employee and will be included in their upcoming payrolls.

### Edit Benefits Assigned to an Employee

**Prerequisites:** You must have already [assigned a benefit](/us/payroll/help/employer/employees/manage-employee-compensation-details.html#assign-benefits-to-an-employee) to the employee.

To edit a benefit assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Benefits_, click the edit icon next to a benefit.

![Edit Employee Benefit Contribution Amounts](/payroll/help/us/employees/manage-employee-compensation-details/edit-employee-benefit-contribution-amounts.png)

5.  In the popup that appears, update the **Employee’s Contribution** and **Employer’s Contribution** amounts. These contributions can be a fixed amount or a percentage of gross pay.
6.  Click **Save**.

The benefit assigned to the employee will be updated, and future payrolls will reflect the new contribution rates.

### Delete Benefits Assigned to an Employee

**Prerequisites:** You must have already [assigned a benefit](/us/payroll/help/employer/employees/manage-employee-compensation-details.html#assign-benefits-to-an-employee) to the employee.

To delete a benefit assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Benefits_, click the delete icon next to a benefit.

![Delete Benefit from an Employee](/payroll/help/us/employees/manage-employee-compensation-details/delete-benefit-from-an-employee.png)

5.  In the popup that appears, click **Yes**.

The benefit will be removed from the employee’s profile.

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## Deductions

Deductions refer to amounts subtracted from an employee’s gross salary to arrive at the final take-home pay. These deductions can be for taxes, retirement contributions, garnishments, or other employee-related expenses.

For example, deductions may include voluntary contributions or court-ordered wage garnishments. These deductions must be applied in compliance with local and federal laws.

### Assign Deductions to an Employee

**Prerequisites:** You must have [configured deductions at the organization level](/us/payroll/help/employer/settings/salary-components.html#add-a-deduction).

To assign a deduction to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the _Compensation_ tab.
4.  Follow one of these steps:
    *   Click **Add** at the top right and select **Deduction**.
    *   If you have not assigned any deductions to the employee, click **Deductions** under _You can also add following to the employee_.
    *   If you’ve already assigned deductions to the employee, click **Add New** next to **Deductions**.

![Add Deduction for Employee Button](/payroll/help/us/employees/manage-employee-compensation-details/add-deduction-for-employee-button.png)

5.  In the popup that appears, select a deduction from the **Select a Deduction** dropdown.
6.  Enter the amount to be deducted from the employee’s salary. You can select either a fixed amount or a percentage of the employee’s gross pay.

![Add Deduction for Employee](/payroll/help/us/employees/manage-employee-compensation-details/add-deduction-for-employee.png)

7.  Click **Save**.

The deduction will be assigned to the employee and included in their upcoming payrolls.

### Edit Deductions Assigned to an Employee

**Prerequisites:** You must have already assigned a deduction to the employee.

To edit a deduction assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Deductions_, click the edit icon next to a deduction.

![Edit Deduction Amount for Employee](/payroll/help/us/employees/manage-employee-compensation-details/edit-deduction-amount-for-employee.png)

5.  In the popup that appears, update the deduction amount.
6.  Click **Save**.

The deduction assigned to the employee will be updated, and future payrolls will reflect the new deduction amount.

### Delete Deductions Assigned to an Employee

**Prerequisites:** You must have already assigned a deduction to the employee.

To delete a deduction assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Deductions_, click the delete icon next to a deduction.

![Delete Deduction from an Employee](/payroll/help/us/employees/manage-employee-compensation-details/delete-deduction-from-employee.png)

5.  In the popup that appears, click **Yes**.

The deduction will be removed from the employee’s profile.

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## Sick Leave Policy

A Sick Leave Policy allows employees to take paid time off for medical reasons, ensuring they can recover from illness or attend medical appointments without losing income.

Common reasons for sick leave include personal illness, medical treatments, and doctor visits. In some cases, it can also cover time off for caring for a sick family member, depending on your organization’s policy.

### Assign Sick Leave Policy to an Employee

**Prerequisites:** You must have [set up a sick leave policy for your organization](/us/payroll/help/employer/settings/paid-time-off.html#sick-leave-policy) in **Settings > Paid Time Off**.

To assign a sick leave policy to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Click **Sick Leave Policy**.

![Add Sick Leave Policy for Employee Button](/payroll/help/us/employees/manage-employee-compensation-details/add-sick-leave-for-employee-button.png)

5.  Select the **Earning Method**.
6.  Enter the number of sick leave hours to **Add**.
7.  Enter the **Maximum Balance** that the employee can accrue for the year.
8.  Enter the **Current Balance** of sick leave hours the employee has.

![Add Sick Leave Policy for Employee](/payroll/help/us/employees/manage-employee-compensation-details/add-sick-leave-for-employee.png)

9.  Click **Save**.

The sick leave policy will be assigned to the employee, and you will be able to add sick leave hours in upcoming payrolls.

### Edit Sick Leave Policy Assigned to an Employee

To edit the sick leave policy assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Paid Time Off_, click the edit icon next to _Sick Leave Policy_.

![Edit Sick Leave Policy for Employee](/payroll/help/us/employees/manage-employee-compensation-details/edit-sick-leave-for-employee.png)

5.  Make the necessary changes.
6.  Click **Save**.

The employee’s sick leave policy will be updated.

### Delete Sick Leave Policy Assigned to an Employee

To delete the sick leave policy assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Paid Time Off_, click the delete icon next to _Sick Leave Policy_.

![Delete Sick Leave Policy for Employee](/payroll/help/us/employees/manage-employee-compensation-details/delete-sick-leave-for-employee.png)

5.  In the popup that appears, click **Yes**.

The sick leave policy will be removed from the employee’s profile.

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## Vacation Leave Policy

A well-defined Vacation Leave Policy helps employees take time off for rest, travel, or personal activities without losing income, contributing to overall job satisfaction and productivity. Additionally, having a clear policy ensures compliance with regulations regarding the accrual and payout of vacation hours.

In Zoho Payroll, you can easily configure and manage vacation leave policies that suit your organization’s needs, while also adhering to legal requirements such as carrying over unused vacation hours or paying out accrued hours upon termination.

### Assign Vacation Leave Policy to an Employee

**Prerequisites:** You must have [set up a vacation leave policy for your organization](/us/payroll/help/employer/settings/paid-time-off.html#vacation-leave-policy) in **Settings > Paid Time Off**.

To assign a vacation leave policy to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Click **Vacation Leave Policy**.

![Add Vacation Leave Policy for Employee Button](/payroll/help/us/employees/manage-employee-compensation-details/add-vacation-leave-for-employee-button.png)

5.  Select the **Earning Method**.
6.  Enter the number of vacation leave hours to **Add**.
7.  Enter the **Maximum Balance** that the employee can accrue for the year.
8.  Enter the **Current Balance** of vacation leave hours the employee has.

![Add Vacation Leave Policy for Employee](/payroll/help/us/employees/manage-employee-compensation-details/add-vacation-leave-for-employee.png)

9.  Click **Save**.

The vacation leave policy will be assigned to the employee, and you will be able to add vacation leave hours in upcoming payrolls.

### Edit Vacation Leave Policy Assigned to an Employee

To edit the vacation leave policy assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Paid Time Off_, click the edit icon next to _Vacation Leave Policy_.

![Edit Vacation Leave Policy for Employee](/payroll/help/us/employees/manage-employee-compensation-details/edit-vacation-leave-for-employee.png)

5.  Make the necessary changes.
6.  Click **Save**.

The employee’s vacation leave policy will be updated.

### Delete Vacation Leave Policy Assigned to an Employee

To delete the vacation leave policy assigned to an employee:

1.  Go to the **Employees** module.
2.  Click an employee.
3.  Navigate to the **Compensation** tab.
4.  Under _Paid Time Off_, click the delete icon next to _Vacation Leave Policy_.

![Delete Vacation Leave Policy for Employee](/payroll/help/us/employees/manage-employee-compensation-details/delete-vacation-leave-for-employee.png)

5.  In the popup that appears, click **Yes**.

The vacation leave policy will be removed from the employee’s profile.