📚 Tutorial 2 of 8

Tutorial 2: Run Your First India Payroll - CrmLeaf HRMS

🎯 Outcome: Complete first payroll with PF ECR generated, ESIC challan ready, TDS computed, and Tally journals posted

8 steps32–40 minCrmLeaf HRMS Admin
✓ Your progress0/8 steps complete
1

Lock attendance for the payroll month

▶ Action

Finalise and lock the attendance data so no further changes are made before the payroll run.

Why this matters: Payroll in CrmLeaf is attendance-driven: present days, LOP, and approved OT all feed directly into salary calculations. Locking attendance prevents changes after the payroll is approved, maintaining data integrity.
  1. Go to Attendance › Monthly View
  2. Select the payroll month
  3. Review: check for employees with unexplained absences or missing data
  4. Approve any pending leave requests that affect this month
  5. Approve any pending overtime requests
  6. Click Lock Attendance for [Month]
  7. Confirm the lock — attendance cannot be edited after this point
Attendance › [May 2025: Locked ✓ | Present: 22 days avg | LOP: 2 employees | OT: 3 approved]
✓
Done when: Attendance status shows “Locked” for the selected month. Total present days, LOP days, and approved OT hours are visible in the summary.
2

Initiate the payroll run

▶ Action

Start the payroll calculation for the current month.

Why this matters: CrmLeaf pre-populates the payroll run from attendance data and salary structures. HR reviews the output rather than calculating it — this is the fundamental time-saving: you are reviewing exceptions, not building the payroll.
  1. Go to Payroll › Payroll Runs › + New Payroll Run
  2. Select month: [current month]
  3. Select employees: All active employees (or specific departments if running in batches)
  4. Click Calculate Payroll
  5. CrmLeaf processes all salary calculations in 30–60 seconds
Payroll Runs › May 2025 › Status: Calculated ✓ | Gross: ₹46.2L | Deductions: ₹8.4L | Net: ₹37.8L
✓
Done when: Payroll run status shows “Calculated.” Summary shows total gross salary, total statutory deductions, and net payable amount.
3

Review the payroll summary and exceptions

▶ Action

Check the payroll output for any anomalies before approving.

Why this matters: The exceptions panel flags anything unusual: employees with zero salary (might be a missing salary structure), TDS changes above a threshold (regime change or salary revision), employees whose PF wages changed significantly. Each exception should be investigated and resolved before approval.
  1. Review the Payroll Summary tab: gross, deductions, net by department
  2. Open the Exceptions tab: investigate any flagged items
  3. Click any employee to see their detailed payslip breakdown
  4. If corrections needed: unlock attendance (if attendance error), correct the salary structure (if component error), or add a payroll adjustment for one-off items
  5. Recalculate if changes made
Payroll › Exceptions: 0 unresolved ✓ | All figures verified ✓
✓
Done when: Exceptions panel shows 0 unresolved exceptions, or all exceptions have been reviewed and resolved. Payroll summary figures are verified.
4

Approve and process the payroll

▶ Action

Formally approve the payroll run to trigger all downstream outputs.

Why this matters: Payroll approval is the trigger for all statutory file generation (PF ECR, ESIC challan, TDS data) and Tally sync. Once approved, payslips are generated and available to employees in ESS immediately.
  1. Click Approve Payroll
  2. Enter your approval PIN or re-authenticate (security requirement)
  3. Confirm the approval in the dialog box
  4. CrmLeaf generates: all employee payslips, PF ECR file, ESIC challan data, TDS deduction summary, Tally journal entries
  5. All employees are notified via email that payslips are available in ESS
Payroll › May 2025 › Status: Approved ✓ | Payslips: Published to ESS ✓ | PF ECR: Generated ✓ | ESIC: Generated ✓ | Tally: Synced ✓
✓
Done when: Payroll status changes to “Approved.” Payslips are visible in employee ESS portals. PF ECR, ESIC challan, and Tally sync all shown as generated.
5

Download and upload PF ECR by the 15th

▶ Action

Download the EPFO-formatted ECR file and upload it to the EPFO Unified Portal.

Why this matters: The PF ECR must be filed by the 15th of the following month. Late filing attracts 12% per annum interest. CrmLeaf generates the ECR in the exact EPFO Unified Portal format — no modification required.
  1. Go to Payroll › Compliance › PF ECR
  2. Select the month and click Download ECR
  3. Save the .txt file
  4. Log in to EPFO Unified Portal: unifiedportal-emp.epfindia.gov.in
  5. Go to Payment › ECR upload
  6. Upload the downloaded .txt file
  7. Verify the challan amount and pay through net banking
EPFO Portal › ECR uploaded ✓ | Challan paid: ₹4,80,000 | Reference: [ECR ref number]
✓
Done when: EPFO Unified Portal shows ECR upload successful. Challan payment confirmed. PF compliance status for this month: Filed.
6

Upload ESIC challan by the 21st

▶ Action

Submit ESIC contributions to the ESIC portal by the 21st.

Why this matters: ESIC challan late payment attracts 12% per annum simple interest. CrmLeaf generates the challan data with employer and employee contributions separated. New employees must be IP-number registered on the ESIC portal within 10 days of joining.
  1. Go to Payroll › Compliance › ESIC
  2. Select month and click Download ESIC Challan
  3. Log in to ESIC portal: esic.nic.in
  4. Navigate to Employer › Online Challan Payment
  5. Enter employer code, select contribution period
  6. System will verify against your ESIC registration; upload the contribution data
  7. Pay via net banking
ESIC Portal › Payment: ₹1,84,000 ✓ | Challan ref: [number] | Date: [before 21st]
✓
Done when: ESIC portal shows payment confirmation. Challan reference number generated. ESIC compliance status for this month: Filed.
7

Deposit TDS by the 7th

▶ Action

Deposit TDS deducted from employee salaries to the Income Tax Department.

Why this matters: TDS must be deposited using Challan 281 through net banking by the 7th of the following month. Late deposit attracts 1.5% per month interest under Section 201(1A). CrmLeaf shows the exact TDS amount deducted and by TRACES period.
  1. Go to Payroll › Compliance › TDS
  2. View the TDS summary for the month (total amount deducted, by employee)
  3. Go to Income Tax TIN-NSDL portal or your bank’s TDS payment portal
  4. Select Challan 281, Assessment Year: current AY, code: 192 (Salary)
  5. Enter the TDS amount from CrmLeaf’s TDS summary
  6. Pay through net banking
  7. Note the BSR code and challan serial number
Challan 281 paid ✓ | BSR Code: [bank code] | Challan Serial: [number] | Amount: ₹2,34,500
✓
Done when: TDS payment challan generated with BSR code and challan serial number. These numbers will be required when filing Form 24Q at quarter-end.
8

Verify Tally sync

▶ Action

Confirm payroll journal entries have posted correctly to Tally.

Why this matters: CrmLeaf Tally sync posts all payroll journal entries automatically after payroll approval. Verifying the sync ensures finance has the correct payroll cost data in Tally from payroll day — not a week later after manual posting.
  1. Go to Settings › Integrations › Tally
  2. Check the sync log for the current month: status should show “Synced successfully”
  3. In Tally, open the relevant company and go to Ledger Reports
  4. Verify: Salary Expense ledger shows the gross salary amount
  5. Verify: PF Payable, ESIC Payable, TDS Payable show correct amounts
  6. Verify: Bank / Bank Payable shows the net salary credit
Tally › Salary Expense: ₹46.2L ✓ | PF Payable: ₹6.24L ✓ | ESIC Payable: ₹1.84L ✓ | TDS Payable: ₹2.34L ✓
✓
Done when: Tally ledger shows all payroll entries with correct amounts. Salary Expense, PF Payable, ESIC Payable, TDS Payable, and Bank credit all match CrmLeaf payroll summary.

✓ Tutorial 2 complete!

You have completed this tutorial. Your next step: Tutorial 3: Set up shift roster and attendance

Next Tutorial →
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