Payroll Processing

Payroll processing in Shaari brings together salary structures, attendance records, leave data, and loan schedules to calculate each employee's pay for a given period. This page walks through the full payroll run workflow from start to finish.

Running Monthly Payroll

Payroll is processed on a monthly basis. To start a payroll run:

1. Navigate to HR Management > Payroll.
2. Click New Payroll Run or Run Payroll.
3. Select the pay period (month and year).
4. The system generates payroll items for all active employees.

info

Only active employees are included in a payroll run. Employees with an Inactive status are automatically excluded. If an employee was deactivated mid-month, their payroll may need manual adjustment.

Payroll Run Workflow

A payroll run moves through the following stages:

Draft → Processing → Pending Approval → Approved → Completed

Stage	Description
Draft	Payroll items are generated and can be freely edited
Processing	Payroll calculations are being processed
Pending Approval	Payroll is submitted for review and awaits approval
Approved	Payroll is approved by an authorized user; salary slips can be generated
Completed	Payments have been processed; payroll run is complete
Cancelled	Payroll run was cancelled before completion

Reviewing Payroll Items per Employee

After generating a payroll run, review individual payroll items:

1. Open the payroll run.
2. The system displays a list of all employees with their calculated amounts.
3. Click on any employee to see the full breakdown.

Each payroll item shows:

• Basic Salary -- The employee's configured base pay
• Allowances -- Housing, transportation, food, phone, and other allowances
• Gross Salary -- Total before deductions
• Deductions -- Insurance, absences, loan repayments, and other withholdings
• Tax -- Any applicable tax deductions
• Net Salary -- The final amount to be paid

tip

Review the payroll summary before approving. Pay attention to employees with unusually high deductions or zero net pay -- these often indicate data entry issues or misconfigured salary structures.

Adjustments and Corrections

Before a payroll run is finalized, you can make adjustments:

Adding One-Time Payments

Add bonuses, overtime pay, reimbursements, or other one-time payments to specific employees within the current payroll run.

Adding One-Time Deductions

Apply one-time deductions for advances, penalties, or corrections that are not part of the regular salary structure.

Modifying Calculated Values

If an automatic calculation is incorrect (for example, an attendance record was wrong), you can override the calculated value for a specific employee. The override is recorded for audit purposes.

caution

Adjustments made after a payroll run is finalized cannot be applied retroactively to that run. You will need to include corrections in the next payroll period.

Payroll Variance Tracking

Shaari tracks variances between payroll runs to help you spot anomalies:

• Month-over-month comparison -- See how each employee's pay changed from the previous month
• Variance flags -- Significant changes (above a configurable threshold) are highlighted
• New additions -- Employees appearing in payroll for the first time are flagged

Variance tracking is especially useful for catching data entry errors or unintended salary changes before payroll is finalized.

Approving and Finalizing Payroll

Approval

Once the payroll run has been reviewed and any adjustments are made:

1. Click Submit for Approval to move the run to Pending Approval.
2. An authorized user reviews the payroll summary.
3. Click Approve to confirm the payroll is correct.

Completion

After approval and payment processing:

1. Mark the payroll run as Completed once all payments have been disbursed.
2. Once completed, no further changes can be made to the calculated amounts.

note

Completion is a one-way action. Make sure all reviews and adjustments are complete before marking as completed. If an error is discovered after completion, it must be corrected in the next payroll run.

Payment Processing

After finalization, process the actual payments:

1. Review the approved payroll summary with net amounts per employee.
2. Use the payment summary to process bank transfers or prepare payment files.
3. Mark the payroll run as Completed once all payments have been disbursed.

Shaari records the payment date and updates the payroll run status. Individual payment records are linked to each employee's payroll history.

tip

Generate salary slips before marking the payroll as completed. This ensures employees receive their salary documentation alongside their payment. See Salary Slips for details on generating and distributing salary slips.