# Run payroll for the month

> Set each employee's salary once, then run the month in one step. EaseDesk works out loss of pay, PF, ESI, professional tax, LWF and TDS on salary, posts the salaries to your books when you approve, and makes payslips, the PF ECR file, the ESI sheet and a bank transfer file.

In EaseDesk: HR & payroll (its own tab) → Payroll runs, Full and final, and HR & payroll settings

## Steps

1. In Settings, Organisation, Payroll, choose whether PF is on wages up to ₹15,000, whether ESI applies, your LWF amounts and months, and whether payslips are emailed. Check the rates and their sources with your CA before your first payroll.
2. On each employee's Salary tab, set their monthly earnings (Basic, HRA, special allowance and your own) from the month they start, and their PAN, UAN, ESI number and bank account.
3. Open People, Payroll, click New run and choose the month. Check the sheet and its warnings, such as a missing bank account or UAN, and add arrears or other lines to anyone's payslip.
4. Click Approve. The month posts to your books in one entry, loans are recovered and approved claims are paid. Payslips go to each employee's My pay, and by email if you chose it.
5. Download the bank transfer file, the PF ECR file and the ESI sheet, and pay. Then click Mark paid and choose the bank account the salaries went from.
6. Once a year, on a draft run, click Add the year's bonus and choose the year and percentage. When someone leaves, set their leaving day and settle them under Full and final.

Payroll posts as one journal entry for the month: salaries and the employer's PF and ESI as
expenses, and the net pay, PF, ESI, professional tax, LWF and TDS as amounts you owe. Choose
different ledgers for any of them in Settings, Payroll.

## Questions

### Can someone in payroll change their own salary?

No. Your own salary, payslip lines, loans and settlement are set by someone else in payroll, or by the Owner.

### What if an employee's bank account changes after the run is approved?

The bank file still pays the account the run was approved with. The change is kept in the audit log with the old and new last four digits, and the employee is told.

### How do I undo a salary payment?

Cancel its payment voucher under Accounting, Vouchers. Only payroll can, and the run goes back to approved and unpaid. An approved run is cancelled with a reason.

### How is gratuity worked out?

After five years' service, 15 ÷ 26 of the last month's Basic + DA for each year (a part year of more than six months, to the day, counts as a year), at most ₹20 lakh. Payroll's Gratuity tab shows what everyone would get today, the provision for your books.

### What goes into a full and final settlement?

Earned leave left, paid at Basic + DA ÷ 26 a day; gratuity if due; notice days short recovered (or waived); the loan balance recovered; approved claims. Their last month's salary comes from that month's payroll run. Approve it to post it, then mark it paid. When nothing is due either way, approving settles it at once.

### Can EaseDesk make Form 16 and the 24Q return?

It makes Form 16 Part B for each employee and the quarter's 24Q figures as a sheet for the government's Return Preparation Utility. Part A of Form 16 comes from TRACES, and the validated 24Q upload file from the utility.

### My bank needs its own file layout.

In HR & payroll settings, under Bank transfer file, choose Use my bank's layout and set the columns in your bank's order, the date and amount formats and the separator.

### What if attendance changes after I work out the month?

EaseDesk notices when you approve and asks you to work the month out again, so the payslips always match what is on the attendance grid.

### How is TDS on salary worked out?

The year's tax on the salary paid so far plus the expected salary for the rest of the year, under the employee's regime (the old regime also allows the professional tax paid), less the TDS already deducted, spread over the months left, or up to the leaving month for someone leaving during the year.

### Which states' professional tax is built in?

Maharashtra, Karnataka, West Bengal, Gujarat, Telangana and Andhra Pradesh. Elsewhere, enter the monthly amount on the employee.

### Can I undo an approved month?

Cancel the run. Its entry is reversed and loans and claims come back. A paid run needs its payment voucher cancelled first.

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Source: https://www.easedesk.com/help/people/run-payroll · Updated 2026-10-26 · EaseDesk