• Payroll is the process of calculating employee salaries, deductions, taxes, and benefits. Dynamics 365 automates payroll while maintaining compliance with statutory requirements, improving accuracy and efficiency.

Why It Matters

• Ensures employees are paid correctly and on time
• Maintains compliance with tax laws and labor regulations
• Reduces manual errors and administrative workload

Steps to Manage Payroll:

• Navigate to Modules > Human Resources > Payroll Administration.
• Enter employee salary details: basic pay, allowances, bonuses, overtime, and deductions.
• Configure pay cycles (weekly, bi-weekly, monthly).
• Run payroll calculations automatically.
• Review payroll journals for errors.
• Post payroll to the General Ledger for accounting reconciliation.
• Example : For a software company, an employee earns ₹50,000/month. Payroll calculation includes tax deductions of ₹5,000 and overtime of ₹2,000, resulting in a net pay of ₹47,000.