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How-to

Add arrears for an employee

Last updated November 30, 2022 · Tushar Agarwal

Arrears is a legal term for the part of a debt that is overdue after one or more required payments have been missed. In short, arrears are money that is owed and should already have been paid. In HRStop, you, as an admin, can add arrears in the system for any employee.

If there is any discrepancy in an employee's salary for any reason, you can use this module to add an arrear of that amount to the system, which is added/processed in that employee’s salary based on the arrear’s transaction date.

Follow these steps to add arrears in the system:

  1. Navigate to Control Panel → Payroll → Arrears. A new page opens.

  2. Under the Add Arrear option, select the employee and update the title and description as required.

  3. Under Type, select an option (Earning/ Deduction).

    1. If the arrear is an earning, choose Earning, as it adds the arrear to the employee's salary when processed.

    2. If the arrear is a deduction, choose Deduction, as it deducts the arrear amount from the employee's salary when the payroll is processed.

  4. Under Category, select the category of the arrear.

  5. Select the Calculation mode (Amount / Days) from the drop-down, based on the arrear you want to add.

    1. Amount: Select Amount if you want to add a flat amount as the arrear, and update the Value amount accordingly.

    2. Days: Select Days if you want the system to calculate the amount based on the number of days you add, and update the Value days accordingly.

      1. With Calculation mode set to Days, select Day as BASE days. For example, for an August amount, you can add 31 as the base days (if the arrear to be paid is for August, as August has 31 base days).

  6. Enter the Transaction date, keeping in mind that it should be in the month in which you want to pay the arrear to the employee. (The arrear is considered only in the payslip for the month you select in the transaction date.)

  7. For the Arrear Status, select Unprocessed. Once the payroll is processed, the status is automatically updated to Processed.

  8. Click the +Add button to add the arrear.

All changes take effect instantly.