Zoho Payroll – Kaafmino

This is the core of Zoho Payroll, designed to keep businesses “audit-ready” with the Indian government.

Income Tax (TDS): Automatically calculates monthly TDS based on the chosen tax regime (Old vs. New). It generates Form 16 (digitally signed) and Form 24Q for quarterly filings.
Social Security (PF, ESI): Handles Employee Provident Fund (EPF) and Employee State Insurance (ESI) contributions. It generates the EPF-ECR and ESIC return files ready for government portal upload.
Professional Tax (PT): Supports state-specific PT slabs and schedules (monthly/half-yearly) across all 28 Indian states.
Labour Welfare Fund (LWF): Automatically calculates LWF contributions based on state-specific rules.
Gratuity & Bonus: Tracks and calculates statutory bonuses and gratuity during full and final settlements.

2. Payroll Administration & Processing

The administrative “engine room” that handles the actual calculation of paychecks.

Flexible Salary Components: Create unlimited earnings (Basic, HRA, Allowances) and deductions. Supports Formula-based components (e.g., $Bonus = 10\% \times Basic$).
Pay Schedules: Supports monthly, bi-weekly, and weekly pay cycles. You can also run “Off-cycle” pay runs for mid-month bonuses or corrections.
Arrears Management: Automatically calculates back-pay when salary revisions are backdated.
Revision History: Maintains a complete trail of salary hikes or structural changes for every employee.
Approval Workflows: A multi-level system where a “Maker” initiates the pay run and a “Checker/Approver” reviews it before finalization to prevent errors.

The portal designed to reduce HR’s administrative burden by letting employees manage their own data.

IT Declaration & POI: Employees submit their tax-saving investment declarations at the start of the year and upload Proof of Investment (POI) at year-end.
Reimbursements: Employees can upload bills (medical, fuel, LTA) directly via the portal or mobile app for approval.
Flexible Benefit Plan (FBP): Allows employees to choose how they want their flexible components distributed (e.g., choosing between Food Coupons vs. Fuel Allowance).
Mobile App: Available on iOS and Android; allows viewing payslips, tax worksheets, and receiving organizational announcements via push notifications.

Zoho Payroll acts as a bridge between your HR data and your accounting books.

Zoho Books Integration: Automatically posts salary expenses, TDS liabilities, and EPF/ESI dues into the correct ledger accounts, ensuring your P&L and Balance Sheet are always current.
Zoho People (HRMS): Syncs attendance, leave, and “Loss of Pay” (LOP) data. If an employee takes 2 days of unpaid leave, Zoho Payroll automatically adjusts the payout.
Banking Integration: Offers “Direct Deposit” partnerships with banks like ICICI, HSBC, and YES Bank, allowing you to pay salaries directly from the Zoho interface without manual file uploads.
Zoho Expense: Automatically pulls approved business travel or expense claims into the monthly payroll for reimbursement.

A structured module to handle employee departures professionally.

Termination Workflows: Handles resignations, terminations, or retirements.
Automated Settlements: Calculates notice period pay, leave encashment, gratuity, and any outstanding loan recoveries in one go.
Final Payslip: Generates a comprehensive F&F statement that summarizes all earnings and recoveries.

Advanced Analytics: Can integrate with Zoho Analytics for deep-dive visualizations of payroll trends and workforce costs.

40+ Pre-built Reports: Includes Salary Registers, Component-wise Summaries, and Liability Reports.

Audit Trails: Detailed logs of who changed what and when, essential for internal and external audits.