Closing payroll each month when attendance, leave and statutory all have to agree

01

Where the monthly close goes wrong

Finance usually receives payroll inputs from HR late and in pieces: an attendance export, a list of leave without pay, a few mid-month salary revisions sent by email. Every manual hand-off is a place where a day of loss of pay or a revised allowance can be missed.

The second problem is reconciliation after the run. Statutory deductions, the bank transfer file and the payroll register have to agree with each other and with what is later filed.

02

Inputs that arrive already settled

In HRMagix, attendance and leave sit in the same system as payroll. Attendance & Shifts calculates loss of pay directly and feeds it to the monthly run, and approved leave is resolved before payroll reads it. The Payroll solution page walks through the month in order: attendance closes, leave resolves, loss of pay computes, gross assembles, statutory applies, you review, money moves, filings and payslips issue.

03

Statutory deductions and the files that follow

• EPF, ESI and multi-state Professional Tax calculated from each employee's wage structure.
• TDS under Section 192 with an old and new regime comparison, and quarterly Form 24Q export.
• ECR files for the EPFO portal and ESIC monthly contribution reports.
• Bank payment batch files formatted for NEFT, RTGS or IMPS.

Watch for itStatutory rates and thresholds change by notification and, for Professional Tax and LWF, by state. Check the current rule before each financial year.

04

Reviewing before money moves

The run includes a review step before payment. For a finance team, that is the point to compare against last month, look at new joiners and leavers, and check any revisions, before the bank file is released.

Analytics reports overtime expenses, leave utilisation and payroll budget variance, which is where a controller looks when the total moves more than expected.