Before you can pay anyone, KalHR needs to know when people are paid (pay cycles) and what their pay is made of (allowances and deductions). Then you add each employee to payroll.
Create pay cycles
A pay cycle is a recurring pay date, such as monthly, on the last Friday. Every salary belongs to one.
Pay cycles
- Open Payroll → Settings → Pay cycle and select + Add Pay Cycle.
- Choose the company and enter a Name, for example Monthly – last Friday.
- Set the Pay Period (monthly, semi-monthly or weekly) and the Pay Day.
- Save.
Create allowances and deductions
Allowances are the parts that make up an employee's gross pay; deductions come off it.
- Open Payroll → Compensation.
- On the Allowance tab, select + Add Allowance. Name it (for example Basic, Housing, Transport), choose whether it is a percentage or a fixed amount, and select Save Allowance.
- On the Deductions tab, select + Add Deduction and do the same for deductions such as Union dues or NHF.
You can also add many at once from a spreadsheet with the batch upload option on each tab.
How percentages work
- A percentage allowance is a share of the employee's gross pay. Allowances together can't exceed gross pay.
- A percentage deduction is a share of gross pay, except NHF and NHIS, which are a share of basic pay.
- A fixed amount is the same naira amount every month.
PAYE and pension aren't allowances or deductions you create: KalHR calculates them for you. See Employee salaries.
Set up payroll approval
On Payroll → Settings → Approvals, set who must approve a payroll run before it can be paid. See Approval workflows.
Watch out
Until a payroll approval workflow is published, payroll runs are approved automatically.
