Overview:
Before running payroll in Better HR, it's essential to define all allowance and deduction columns your organization uses. These columns allow the system to automatically or manually calculate various income and deduction types for each employee.
Step-by-Step Guide
1️⃣ Access the Payroll Settings
Go to Settings from the main menu.
Click the Payroll tab.
You’ll see two main sections: Allowances and Deductions.
2️⃣ Allowance Setup
In the Allowance section, you’ll see system defaults like Salary and Overtime (Old) — these can be disabled but not deleted.
➕ To create a custom allowance:
Click + Create Custom Benefits.
A setup box will appear.
Under Custom Income Type Name, enter the name of the allowance.
Click the arrow beside Advanced settings for payroll item if you want to apply a calculation logic.
💡 If this is a manual allowance (entered manually each month) or a fixed amount for every month, you don’t need to set any logic — the default is “Regular”.
User Guide for - Setting Up Regular Allowances & Deductions
✅ Available Allowance Logics (Optional):
Attendance Bonus
User Guides for - How to Set Up Attendance Bonus in Better HR System ( Using Auto Calculation Logic )
Attendance-Based Payment
The system will calculate income based on actual attendance.
User Guide for - How to Set Up Attendance-Based Payment in Better HR System ( Using Auto Calculation Logic )
3️⃣ Deduction Setup
Below the Allowance section, you’ll find Deductions.
System defaults like Unpaid Leave and Absent are also not deletable but can be disabled.
➕ To create a custom deduction:
Click + Create Custom Deductions.
In the popup, enter the name under Custom Income Type Name.
For manual deductions, no need to adjust logic — “Regular” is selected by default.
User Guide for - Setting Up Regular Allowances & Deductions
✅ Available Deduction Logic Options (Optional):
Click the arrow beside Advanced settings for payroll item, and select logic such as:
Unpaid Leave - When using the Unpaid Leave logic in a deduction column, the system allows you to define which parts of the employee’s income will be affected.
📌 This is useful for companies that want unpaid leave deductions not only on base salary but also on other allowances (e.g., transport, meal, etc.).
User Guide for - How to Set Up Unpaid Leave Deduction on Allowance in Better HR ( Using Auto Calculation Logic )
Non-Attendance → If you want to deduct either a flat rate or a portion of earnings (salary or allowances) per day when the employee is completely absent from work without approved leave.
User Guide for - How to Set Up Non-Attendance Deduction on Allowances ( Using Auto Calculation Logic )
No Check-In → If you want to deduct either a flat rate or a portion of earnings whenever an employee fails to check in for the day.
User Guide for - How to Set Up No Check-In and No Check-Out Deductions in Better HR ( Using Auto Calculation Logic )
No Check-Out → If you want to deduct either a flat rate or a portion of earnings whenever an employee fails to check out for the day.
User Guide for - How to Set Up No Check-In and No Check-Out Deductions in Better HR ( Using Auto Calculation Logic )
Early check-out - If you want to deduct either a flat rate or a portion of earnings when employee check-out early at work.
User Guide for - How to Set Up Early Checkout Deduction in Better HR ( Using Auto Calculation Logic )
Late → If you want to deduct either a flat rate or a portion of earnings when employees arrive late to work.
