Running Monthly Payroll

Payroll errors destroy trust faster than any other HR failure

Pay someone wrong once and they'll wonder about it forever. Run payroll accurately, on time, every month — and it becomes invisible. That's the goal.

The payroll run structure

Each payroll run in Proactiq covers a specific period and generates individual entries for every employee. Each entry breaks down:

• Basic Salary — Typically 40-50% of CTC
• HRA — House Rent Allowance. 40% of basic (non-metro), 50% (metro)
• Allowances — Special allowance, medical, transport, LTA
• Gross Salary — Sum of all above
• Provident Fund (PF) — 12% of basic, employee contribution deducted
• Professional Tax (PT) — State-specific slab deduction
• Income Tax (TDS) — Monthly advance deduction per estimated annual liability
• Net Salary — What hits the employee's bank account

Creating a payroll run

1. Go to Payroll → New payroll run
2. Set the period (e.g., "March 2025"), start date, and end date
3. Add each employee with their salary components
4. Review totals — gross, deductions, and net
5. Change status to Processing when you initiate bank transfers
6. Change to Paid once all transfers are confirmed