Salary

Note: This topic keeps updating whenever a new payroll report is added to Keka

As of now, there are around 50 payroll reports available on Keka with many more coming soon.  To view the available reports, please go to Payroll >> Reports.

Few examples of payroll reports available on Keka:

Payroll:

• Current Salary Structure
• Current Salary With Bonus
• Employees Current CTC
• Expense Claim Report
• Financial Information
• Component break up for each employee (Pay Register)
• Contribution / Deduction Reconciliation Report
• Head Count Monthly Report
• Monthly Batch Payment – Bank Transfer, Cheque, Cash
• Payroll Journal Vouchers Report – Tally
• Salary Revision Report
• All Employee YTD Report

Income Tax:

• Annual Income Tax Report
• Annual HRA Reports
• Investment Declaration Summary Report
• Monthly Income Tax Statement

Provident Fund (PF):

• PF Remittance Report
• PF Monthly Electronic Return (ECR)
• PF Contribution card – Form 6A
• PF Joinee Statement – Form 5
• PF Exits Statement – Form 10
• PF Monthly Statement – Form 12A (Revised)
• Aadhar (UIDAI) submission Form
• PF Summary Report
• PF Arrear Report
• PF Admin Charges Report

Employees’ State Insurance (ESI):

• ESI Monthly Statement
• ESI Monthly Return (Electronic)
• Contribution Register (Form 5)
• ESI Overrides
• ESI Summary Report

Professional Tax (PT):

• PT Monthly Statement
• PT State Wise Report (Form 5)
• PT Override Report

If you are looking for any specific report, write to support@keka.com.

Submit claims for tax exempted allowances

Certain allowances are exempted at source, as per The Income Tax Act. The total tax liability of an individual of an employees can come down to a great extent if these allowances are included as part of salary structure.

In most of the cases, your employer might require you to submit bill at the end of financial year against these allowances to get tax exemption. In case you fail to provide bills for these allowances, the total allowance amount becomes taxable.

To submit claims/bills for tax exemptions on such salary allowances, follow the steps below:

Step 1: Go to My Finances >> Manage Tax >> Declaration

Step 2: Under ‘Declaration’, go to ‘Tax Saving Allowances’

Step 3: You can view list of all the allowances which are part of your salary and tax exemption (max. limit) associated with it. If you want to submit a claim/bill, click on ‘Edit’ link against the respective allowance.

Step 4: Enter the amount you want to declare for tax exemption, and click on ‘Upload’ link to upload proof of declaration. Once done click on ‘Save’ button to submit the declaration for approval from employer.

Once the declaration is accepted/rejected by your employer, you can view change in status. Only in case of accepted declarations, it will be considered for tax exemption.

Related:

What is meant by Tax exempted allowances?

An allowance in salary structure requires claim submission for tax exemption, how do I configure this?

Employees are unable to make Income Tax (IT) declarations and submit proofs, why?

How can employee make IT (Income Tax) declarations?

Where can I view and approve all the IT declaration made?

In case you are facing trouble when making declarations, write to support@keka.com.

The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. In case of salaried individual, the Professional Tax (PT) is to be deducted by the employer from the salary and deposit the same with the state government.

In case of organisations having employees spread across various states, they can either choose to deduct PT by employee’s work location, or can choose the central work location (from where the payroll processing happens). A good example of latter case is a company (located in Mumbai) employing sales individual across various states in India, but salary being processed from Mumbai (Maharashtra State) location. In such cases, the company might want to deduct PT of all employees (irrespective of their work location) as per Maharashtra state rules/slab.

To configure PT deduction for your employees, follow the steps below:

Step 1: Go to Settings >> Payroll >> Statutory Filing Information

Step 2: Under ‘Statutory Filing Information’, go to ‘Professional Tax Info’ (Section 3) to turn on/off, or configure PT deduction location.

Step 3: Use the toggle button to turn PT on/off.

In case PT applicable state is same as work location of employees, select ‘Use Actual’. This will enable the PT deduction of employees based on their actual work location.

In case of PT applicable state needs to be defaulted to any specific organisation’s location, select ‘Use Default State’. Click on ‘+Add’ button to choose the default state that needs to be considered for PT deduction.

Once done, click on ‘Save’ button and the settings will be effective immediately.

Related:

What is Professional Tax (PT)?

Keka is not calculating Professional Tax (PT) for employee(s), why?

In case you are facing trouble while configuring PT for your employees, write to support@keka.com.

In case your employees are not able to view selected month’s pay slips, this might be because viewing of pay slip is not enabled yet by the Payroll admin.

To enable viewing of payslip, go to Payroll >> Run Payroll >> Payroll OutCome Actions > Manage Payslips

On the popup that appears, click on the toggle button (to Yes) to enable pay slips viewing. Once enabled, click on ‘Save’ button. You can also choose to email payslip to your employees by clicking on the check-box to select and then clicking on ‘Send Email’ button.

In case your employees are having trouble viewing/downloading pay slip, write to support@keka.com.

Issuing or Adding Bonus to Employee’s Salary

Bonuses can be part of employee’s CTC but might not be paid out on a regular basis. Also, there can be variable bonuses that are paid out based on employee’s and company’s performance, and fixed bonus which are paid out in full.

Example of a variable bonus can be ‘Performance Incentive’, which is paid out (partially or fully) based on company’s and employee’s performance. There can other fixed bonuses such as ‘Retention Bonus’, ‘Joining Bonus’, etc. which are paid out in full based on the negotiation between employee and employer.

Prerequisite: Before issuing bonus, read How do I create bonus?

To issue/add bonus to an employee’s salary, follow the steps below:

Step 1: Go to employee’s profile by typing the employee’s name in the search bar

Step 2: Go to ‘Finances >> Pay’ tab on employee’s profile

Under Pay, go to Salary tab and click on ‘Issue Bonus’ button

Step 3: On the popup screen that appears, choose Bonus (from dropdown) that is part of employee’s salary, amount that needs to be paid out, and payable month.

In case the status chosen is ‘Pending’, the system will automatically include this bonus during the payable month’s payroll run (and ask for payment confirmation). In case of ‘Paid Outside Keka Payroll’, choose the date on which the payment was made, so that the amount, though won’t be paid using Keka payroll, will be considered for tax calculation (default).

Once done, click on ‘Add’ button to add this bonus to employee’s salary.

This bonus will now be visible on employe’s salary page, along with other details

You can issue as many bonuses as you wish to an employee, there is no limitation to number of bonuses that can be paid out to an employee.

In case you are having trouble with issuing bonus to an employee or want to do a bulk bonus assignment to multiple employees, write to support@keka.com.

Creating Bonus

Bonuses can be part of employee’s CTC but might not be paid out on a regular basis. Also, there can be variable bonuses that are paid out based on employee’s and company’s performance, and fixed bonus which are paid out in full.

Example of a variable bonus can be ‘Performance Incentive’, which is paid out (partially or fully) based on company’s and employee’s performance. There can other fixed bonuses such as ‘Retention Bonus’, ‘Joining Bonus’, etc. which are paid out in full based on the negotiation between employee and employer.

To create a new bonus on Keka, follow the steps below:

Step 1: Go to Settings >> Payroll >> Salary Components & Structures

Step 2: Under ‘Salary Components & Structures’, go to ‘Adhoc Components’ (Section 3)

Step 3: Under Adhoc components, go to 4th section  ‘Bonus’ and click on ‘Add Bonus’ link to add a new Bonus.

Step 4: On the popup that appears, add Bonus name and description for easy identification. Click on ‘Save’ button when done.

Once done, you will be able to see the newly added bonus in the list of Bonuses.

Once done with creating bonus type, click on ‘Continue’ button to finish adding Bonus(s).

Next Step: To issue bonus to your employees, see How do I issue bonus to my employees?

In case you are not able to create/issue bonus to your employees, write to support@keka.com.

Overriding TDS for an employee

There can be situations when an employee requests you to stop the TDS deduction or deduct less amount of TDS for selective few months. As an employer you have the flexibility to override the TDS amount for your employees on Keka.

To override the TDS amount, follow the steps below:

Step 1: Go to Payroll >> Payroll Admin >> Payroll & Income Tax > TDS Deduction Overrides

Step 2: On the screen that follows:

• For updating the TDS of individual employee, click on ‘Add Employee’ link, type and choose the employee for whom you wish to override TDS amount

On the pop-up that appears, you can view the Gross Salary and Regular TDS (per month) of the employee. Choose the period for which you want to do the TDS override and the override amount per month. Once done, click on ‘Save’ button to update the new TDS value for the employee.

IMPORTANT: Please note that the Override amount CANNOT be greater than the Regular TDS amount.

• For updating the TDS of multiple employees, click on ‘Import Income Tax Overrides’ link

From the screen that  follows, Download the ‘Excel Template’

Fill in the Excel file by choosing the period of override (dropdown) and override amount per month.

Once done, go back to the Upload screen, and click on ‘Upload Excel File’ to upload the override Excel file

Once the file is uploaded successfully, the new TDS amount for employees (updated override amount in Excel file) will come into effect as and when the ‘From Month’ (of override) approaches.

In case you are not able to override the TDS duration/amount, write to support@keka.com.

Overriding salary component amounts to be different/varying for employees

Even though the same salary structure is assigned to multiple employees in an organisation, chances are that the amount of components (Other than Basic & HRA) might vary from one employee to other.

For example, though 2 employees are having same salary structure (‘Basic = 40% of Gross’ & ‘HRA = 40% of Basic’), the components such as Mobile Reimbursement, Professional Allowance, Food Coupon, etc. might have different annual value/amount for both employees.

Since the value of components are based on the negotiation between employer and employee, this can vary from one employee to other, and thus needs to be updated on Keka for effectively calculating the amount when running payroll.

IMPORTANT: Before you can override the component amount for employees, the configuration needs to be enabled for the overriding component’s amount. To configure this, read Can I configure a salary component to have different amount for employees having same salary structure?

To override the component amount to be different/varying for employees, follow the steps below:

Step 1: Go to Payroll >> Payroll Admin >> Salary & Income Tax > Employee Component Overrides

Step 2: On the screen that follows:

• For updating the component value of individual employee, enter the annual amount for the component (in case the component doesn’t exist in employee’s salary, enter 0). Blank field will take the default maximum amount configured at the salary structure level. Once done with adding the amount/value, click on ‘Update’ button to override the amount at individual employee level.

• For updating the component value in bulk for multiple employees, click on the ‘Import Component Overrides’ link

Download the Excel file by clicking on ‘Excel template’ on the next screen

Open the Excel file and update the annual amount/value of the component applicable to an employee. In case the component doesn’t exist in employees salary, make it 0. If the amount is calculated according to maximum amount defined at salary structure level, leave it blank.

Once done, save the Excel file and go back to the screen to upload the Excel file

Click on ‘Upload Excel File’ button and choose the file to upload. Once done, this will update the salary component amount of all employees in bulk.

Note: ‘Not applicable’ represents that the component is not present in salary structure of the employee. In case you wish to include this in the salary structure of employees, go back and edit the salary structure.

Related:

How do I create a salary structure and manage its components?

In case you are not able to update the salary component at employee level, write to support@keka.com.

Revision of salary

The revision of employees’ salary in organisations usually happens in either of the 2 ways:

• As and when an employee completes an year since his/her last revision.
• A particular period/month of year is defined for the revision to happen, for all employees.

There can also be exceptional cases where employer decides to revise the salary of an employee even if yearly cycle of revision is not yet completed.

In order to revise the salary of an employee, follow the steps below:

Step 1: Go to employee’s profile by typing the employee’s name in the search bar

Step 2: Go to ‘Finances >> Pay’ tab on employee’s profile

Under Pay, go to Salary tab and click on ‘Revise Salary’ button

Step 3: On the revision screen that appears, enter the ‘Revision Effective From’ date of new CTC.  You can choose to either enter new annual CTC amount, or the percentage of revision that might have happened.

By default, the ‘Range Based’ salary structure will be selected, change this in case the employee has been assigned to a custom salary structure by clicking on ‘Manually Choose’ and selecting the respective structure from the drop-down.

Step 4: You can add any bonus that might be part of the CTC of employee by clicking on ‘Add Bonus’ button. You can choose this bonus to be either a fixed amount of CTC or a percentage of the CTC.

Choose additional fields such as Bonus Type, Due on, and Status and click on ‘Save Bonus’ to add this bonus in employee’s CTC.

You can add multiple bonus for an employee.

Once done, click on ‘Revise’ to completing the salary revision of an employee.

In case you are having trouble with salary revision of an employee or want to do a bulk salary revision of multiple employees, write to support@keka.com.

Viewing & Downloading Pay Slips

To view and download pay slip of an employee, follow the steps below:

Step 1: Go to employee’s profile by typing the employee’s name in the search bar

Step 2: Go to ‘Finances >> Pay’ tab on employee’s profile

Step 3: Under Pay tab, go to ‘Pay Slips’ tab and choose the desired month on the left hand side to view salary slip

Scroll down to the bottom and you will find an option to ‘Download’ the pay slip. Click on ‘Download’ button to download the pay slip.

In case your employees are not able to view selected month’s pay slips, this might be because viewing of pay slip is not enabled yet by the Payroll admin.

To enable viewing of payslip, go to Payroll >> Run Payroll >> Payroll OutCome Actions > Manage Payslips

On the popup that appears, click on the toggle button (to Yes) to enable pay slips viewing. Once enabled, click on ‘Save’ button. You can also choose to email payslip to your employees by clicking on the check-box to select and then clicking on ‘Send Email’ button.

In case you are having trouble viewing/downloading pay slip of your employee, write to support@keka.com.

Professional Tax (PT) is a tax levied by the State Governments and is not be applicable in all States & UTs. Also, the rate at which PT is charged is based on the Income Slabs set by the respective State Governments.

Learn more about PT, States & Union Territories it’s applicable in, and PT Rate Slabs »

If Keka is not calculating PT for your employee(s), it can be because of any of the following reasons:

If PT is not calculated for few employees, please check the following conditions:

1. Check if the work location (State/UT) of employees (getting excluded from PT calculation), in applicable for PT deduction.
2. Employee’s Income is falling under Income Slabs applicable for PT deduction.  Check Income Slab for PT deductions »
3. Employee’s ‘Date of Birth’ and ‘Gender’ are filled in.  This is important because PT depends on age and gender of an employee as well.

To check if ‘Gender’ and ‘Date of Birth’ data of an employee exists, please follow the steps below:

Step 1: Go to employee’s profile by typing the employee’s name in the search bar

Step 2: Go to ‘Profile’ tab of the employee’s profile

Step 3: Under Profile >>Primary Details, check if ‘Gender’ and Date of Birth’ information exists

Step 4: If any of the information is missing, click on ‘Edit’ link to add these details.

For updating multiple employees profile information in bulk, read How do I update employees Profile & Job information in bulk?

If PT is not calculated for all employees, please check if the work location (State/UT) of employee is applicable for PT deduction.

To check work location of all employees, please follow the steps below:

Step 1: Go to Employees >> Dashboard >> All Employees

Step 2: Click on ‘All employees (Number)’ to view list of all employees along with their work location

In case ‘Location’ is missing for employee(s), update ‘Location’ of employee(s) either by going to their profile, or update in bulk. Read, How do I update employees Profile & Job information in bulk?

Also, check if the ‘Location’ is correctly associated to the State or UT your employees’ work location belongs to. To do this, follow the steps below:

Step 1: Go to Settings >> Company Settings >> Locations

Step 2: Against ‘Location’ name, you want to verify, for associated State or UT, click on ‘Edit’ icon to view details of State or UT it has been associated with.  In case you think that this has been wrongly selected, please update it.

List of states that are applicable for PT deduction:

• Andhra Pradesh
• Assam
• Bihar
• Goa
• Gujarat
• Jharkhand
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Meghalaya
• Odisha
• Tamil Nadu
• Telangana
• Tripura
• West Bengal

If you are still facing issues with PT calculation of employees, write to support@keka.com.

Professional Tax (PT)

Professional Tax is a tax levied by the State Governments on all ‘Earning Individuals’. ‘Earning Individuals’ include all salaried individuals, as well as individuals practising any profession such as Doctor, Lawyers etc.

The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. However the maximum Professional Tax that can be levied by any State till date is Rs 2,500/-. There are some states and union territories that do not charge professional tax.

The total amount of professional tax paid during the year is allowed as Deduction under Section 16 of The Income Tax Act.

Professional Tax is a source of revenue for the State Governments and is used to implement schemes for the welfare and development of the region.

In case of salaried individual, the Professional Tax (PT) is to be deducted by the employer from the salary and deposit the same with the state government. If case the earning individual is not a salaried individual, PT needs to be paid by the person directly.

Professional Tax Slab Rates in Various Indian States:

Andhra Pradesh

Assam

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Bihar

Goa

Gujarat

Jharkhand

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Meghalaya

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Odisha

Tamil Nadu

Telangana

Tripura

West Bengal

Exemption from Paying Professional Tax (As per the Act)

• Any person suffering from a permanent physical disability (including blindness)
• Parents or guardian of any person who is suffering from mental retardation.
• Persons who have completed the age of 65 years.(60 years in case of Karnataka)
• Parents or guardians of a child suffering from a physical disability as specified in clause (C) w.e.f 1.10.1996.

Professional Tax is not applicable in following States & UTs:

Arunachal Pradesh
Andaman & Nicobar
Chandigarh
Chattisgarh
Dadra & Nagar Havelli
Daman & Diu
Delhi
Haryana
Himachal Pradesh
Jammu & Kashmir
Lakshadweep
Nagaland
Punjab
Rajasthan
Uttaranchal
Uttar Pradesh

 

Related: Keka is not calculating Professional Tax (PT) for employee(s), why?

If you are facing trouble with PT deductions on Keka, write to support@keka.com.

Employees earning a Basic (plus DA) Salary of more than Rs. 15,000 can choose not to contribute to PF. Though, opting out of PF will increase your take-home salary, it will also increase the tax liability (The employer PF contribution is exempt from tax and employee’s contribution is taxable but eligible for deduction under section 80C of Income tax Act.).

Prerequisite to remove employee from PF contribution: ‘Opt-out from PF’ option should be enabled under PF settings.

To do this, go to Settings >> Payroll >> PF and ESI settings, and check the option under PF Contribution that says ‘Allow employee to override PF Contribution, opt-out from PF, limit to statutory pf’.

In case you wish to remove or opt-out an employee from PF contribution, follow the steps below:

Step 1: Go to Payroll >> Payroll Admin >> Provident Fund & ESI > Employee PF options

Step 2: On the next screen, click on ‘Change’ link against the employee for whom you want to disable the PF contribution.

Step 3: On the pop-up that appears, turn on the ‘Desired PF Override’ (toggle button) and update the value to ‘0’. Click on ‘Submit’ button and the PF contribution amount will be updated to ‘0’, thus disabling the PF contribution for the selected employee.

If you wish to do a bulk update/disable PF contribution amount, click on ‘Bulk Import’ link to download the Excel file template and update/disable PF contribution in bulk.

In case you are not able to disable PF contribution of employees, write to support@keka.com.