Employees

An Employee record puts a person on payroll: it links an existing Resource (the person) to the company that pays them and records their HR terms, joining and exit dates, and salary-tax election. You create it once, when someone joins, after the Resource exists and before their first payroll run. Their pay itself comes from a Resource Compensation and salary structure, and their exit is closed by a full and final settlement.

Overview

The Employee is a companion to the Resource, not a replacement for it. The Resource stays the person's identity everywhere in xMatix: payroll postings, payslips, open items, loans, expense claims, leave and attendance are all keyed on the Resource. Bank account, IFSC, PAN, UAN and date of birth are also held on the Resource. The Employee adds what only payroll needs:

• who pays them: Partner Account and Payroll Company;
• whether they are still on payroll: Employment Status;
• how their salary tax is projected: Tax Regime and Tds Applicable;
• HR facts kept for record: employee code, employment type, pay type, grade, dates of joining, confirmation, probation and exit.

A payroll run reads only a handful of these fields. The page says which ones, field by field, so you know what changes pay and what is kept for reference.

When to use it

• A person joins and will be paid through xMatix payroll. Create their Resource first if it does not exist, then their Employee record, then their Resource Compensation. With the HR licence, Convert to employee on the joiner's onboarding makes the Resource, the Employee and the compensation in one step.
• Their employer, tax election or status changes. Edit the record. A transfer between legal entities is a change of Partner Account or Payroll Company.
• They leave. Record their Date Of Exit and set Employment Status to Exited. With the HR licence, an approved Separation does both for you the day after the agreed last working day. The run pays them up to the exit date in their last month, unless their full and final settlement carries that month (see How xMatix handles it).

You do not need an Employee record for people who are never paid through payroll, such as field users who only file expense claims. Expense claims and advances are keyed on the Resource.

How xMatix handles it

Who a payroll run includes. When a run calculates, it takes every Employee record that:

• is not deleted;
• has a Resource;
• has a Payroll Company or Partner Account equal to the run's company;
• joined by the end of the payroll period (or has no Date Of Joining);
• has not left before the period starts: no Date Of Exit, or a Date Of Exit on or after the period's start date.

An employee whose Employment Status is Exited is still included in the period that holds their Date Of Exit, and paid up to that date. Only an Exited record with no Date Of Exit is left out of every run. A leaver is also skipped in the month their full and final settlement already pays: once the settlement has a computed final salary line for a last working day in the period, the run does not pay that month again.

Joining and exit dates cut the month. Date Of Joining and Date Of Exit cut the payroll period at both ends. Days before joining and after the exit are not paid, and they are not loss of pay either. A person who joins on the 15th is paid from the 15th; a person who leaves on the 10th is paid to the 10th. Payable days are the days employed in the period minus loss-of-pay days (see Running payroll). Employment Type, Pay Type and Branch are not read by the run.

Salary tax. The monthly salary-TDS projection takes the same people, minus anyone whose TDS applicable box is explicitly unticked. A record where the box was never touched counts as applicable. It applies the Old regime only when Tax Regime is Old Regime. A blank Tax Regime or New Regime gets the New regime. See Income tax on salary.

What is recorded but not read. These fields are not used by payroll, tax, expense or any other calculation:

• Employment Type, Pay Type and Salary Payment Mode;
• Grade, Department, Designation, Cost Center and Business Unit;
• Confirmation Date and Probation End Date;
• Settlement Status.

Whether someone pays PF, ESI, PT or LWF is decided by the components on their salary structure, and an unticked Applicable box turns that scheme off for the person. Expense-policy grade limits use the Grade on the Resource, not on the Employee.

One record per person. xMatix expects exactly one Employee per Resource. Nothing stops you from saving a second one, so check the list before you create. Two records for the same Resource and company mean the person is calculated twice in the same run.

Prerequisites

• The person's Resource record, with bank account, IFSC and PAN filled in. The payment batch and the TDS return read them from there.
• The legal employer exists as a partner account (your own company) with at least one Branch.
• Access to the Employee entity in your security profile (see Permissions).
• To be paid, the person also needs a Resource Compensation that names a salary structure. You add it after the Employee (see Salary structures).

Procedure

Step 1 — Open the employee list

Open the Payroll app and choose Run payroll → Inputs → Employees. You can also type Employee in the App Launcher search. The list (the Employees (payroll) view) shows each record's employee code, payroll company, salary structure, tax regime, pay type, payment mode, PF and ESI flags and status.

Before you create anything, search the list for the person's name or employee code. If they already have a record, open it instead of creating another.

Step 2 — Create the record

Select New. The form opens:

1. Name: a unique name for the record, for example the person's name followed by their code. It is not generated for you.
2. Employee Code: your staff number for the person.
3. Resource: pick the person.
4. Partner Account: the legal employer. Only your own companies are offered. Then pick the Branch, which lists that company's branches.
5. Business Unit: optional.
6. In Details, type the Employment Type, for example Full Time (see the values under Fields).
7. Set Payroll Company if payroll runs under a different company from the Partner Account.
8. Set Date of joining. Grade is optional.
9. Leave Salary Payment Mode, Employment Status and Pay Type at their prefilled values: BankTransfer, Active and Monthly.

Values must be typed exactly. Employment Type, Salary Payment Mode, Employment Status and Pay Type are plain text boxes on this form, not lists, so the value must match the stored value. To change any of them later, use the record page, where they are drop-down lists.

On a tenant that runs a single company or a single location, Partner Account or Branch is hidden and filled for you.

Select Save. The record opens on its own page.

Step 3 — Complete the record page

The record page has a header with Edit and Delete, plus the TDS worksheet button described in Business rules. Below the header it shows the record's Employee Code, Employment Status, Employment Type, Department, Pay Type and Date Of Joining. The Details tab has five groups:

• Basic Details: Resource, Employee Code, Department, Grade, Employment Type, Employment Status, Pay Type, Salary Payment Mode.
• Organization Details: Partner Account, Business Unit, Cost Center, Branch, Payroll Company, and Resource again.
• Employment Dates & Status: Date Of Joining, Confirmation Date, Probation End Date, Date Of Exit, and Settlement Status. Settlement Status shows only once Employment Status is On Notice or Exited.
• Statutory & Tax Details: Tax Regime, Pf Wage Cap Override, and the Pf, Esi, Pt, Lwf and Tds Applicable boxes.
• System Information: Created By, Created Date, Modified By, Modified Date.

Select the pencil beside a field to change it in place, or select Edit to change several fields at once in a dialog.

Check two fields before the first run:

• Tax Regime shows New Regime unless the employee has chosen the old regime.
• TDS applicable is ticked, or left untouched, for everyone whose salary tax you deduct.

Step 4 — Give the person pay

On the person's Resource, add a Salary assignment with their CTC, their salary structure and an Effective From date. Without it the run counts them as skipped. Salary structures describes this step.

Step 5 — Change the employer, status or tax election

Edit the record:

• A transfer to another legal entity. Change Partner Account (and Branch) or Payroll Company. The next run of the new company picks the person up. Do this after the old company's last run for them has been calculated.
• A notice period. Set Employment Status to On Notice. It is recorded only, and the person is still paid.
• A change of tax election. Change Tax Regime. The next salary-TDS projection uses it.

Step 6 — Take a leaver off payroll

Set the person's Date Of Exit and set Employment Status to Exited. With the HR licence, an approved Separation does this for you the day after the agreed last working day.

• Their last month. The run of the period that holds the exit date pays them up to that date. Later runs leave them out.
• Paid through the settlement instead. When the person's full and final settlement computes a final salary line for that month, the run skips them in that month, so the month is paid once.
• Exited with no exit date. The person is left out of every run, including the current one. Fill the exit date if their last month is still to be paid.

Posting the full and final settlement sets Settlement Status to Settled and Employment Status to Exited, and fills an empty Date Of Exit from the settlement's Last Working Day.

Do not delete an Employee record that payroll has already paid: payslips, run details and open items stay on the Resource. Delete only records created by mistake.

Fields

Create form and record page

Record page only

Business rules

• Required fields. Name, Employee Code, Resource, Partner Account, Branch, Employment Type and Date Of Joining.
• Unique name. Two Employee records cannot share a Name. Two records can share a Resource or an Employee Code.
• Date checks. Three validations run whenever the dates involved change:
  • Date of Confirmation refuses a Confirmation Date before Date Of Joining: "Confirmation date cannot be less than Joining Date".
  • Probation End date refuses a Probation End Date before Confirmation Date: "Probation End Date cannot be less than Confirmation Date".
  • Date of exit refuses a Date Of Exit before Date Of Joining: "Date of exit cannot be before the date of joining".
• Payroll inclusion. Partner Account or Payroll Company equal to the run's company, a Resource, joined by the period's end, and not exited before the period's start. Exited with no Date Of Exit is left out. A leaver whose final month is on a computed full and final settlement is skipped in that month.
• Exit through settlement. Posting a full and final settlement for the person's Resource sets Settlement Status to Settled and Employment Status to Exited, and fills an empty Date Of Exit with the Last Working Day. It is one save: if the employee update is refused, nothing is posted.
• TDS Work Sheet. The header button computes a read-only preview of the person's salary-tax projection under both regimes and changes nothing. The button itself shows only "Action Executed"; the TDS Calculation Sheet tab shows the same computation in full — Old vs New, recommended regime and saving, monthly TDS, declarations and slabs — and so does the TDS calculation sheet page under Payroll → Income tax → Tools. The saved figure that drives deduction is the person's Monthly TDS Projection after a run's Project TDS or Calculate (see Income tax on salary).
• Delete. Deleting removes the record from lists and from every later run.

Example

A company hires a sales coordinator, staff number EMP-2041, who starts on 3 November.

1. HR confirms that the coordinator's Resource exists, with bank account, IFSC and PAN.
2. In Payroll → Run payroll → Inputs → Employees, HR searches for EMP-2041, finds no record, and selects New.
3. They enter:
   • Name Sales Coordinator - EMP-2041, Employee Code EMP-2041, and the coordinator's Resource;
   • Partner Account: the company's own account, Branch Pune;
   • Employment Type Full Time, Date Of Joining 3 November;
   • the prefilled BankTransfer, Active and Monthly left as they are. Then they save.
4. On the record page, Tax Regime shows New Regime. The coordinator has chosen the old regime, so HR changes it to Old Regime with the pencil.
5. On the coordinator's Resource, HR adds a Resource Compensation with CTC 60,000, the "Field staff" structure, and Effective From 1 November.
6. The November run includes the coordinator and pays them from 3 November: the two days before joining are not paid, and they are not counted as loss of pay.

Training

Practice exercise

In a sandbox:

1. Create a Resource named Trainee One.
2. Create an Employee for it with Employee Code TRN-001, your company as Partner Account, a branch, Employment Type Full Time and today as Date Of Joining.
3. Add a Resource Compensation that names any active salary structure.
4. Calculate a payroll run for the current period.

Expected result: Trainee One appears in the run's register. Now set their Date Of Exit to a day inside the period and their Employment Status to Exited, and recalculate. They stay in the register with fewer payable days. Clear the Date Of Exit, keep the status Exited and recalculate: they are no longer in the register, and Total Resources drops by one.

Quick reference

• Create the Resource first. Bank, PAN and date of birth live there, not on the Employee.
• One Employee per Resource. Search before you select New.
• A run includes Partner Account or Payroll Company = run company, joined by the period's end and not exited before its start.
• A leaver is paid to the Date Of Exit in their last month. Exited with no Date Of Exit is left out of every run.
• Tax Regime: Old Regime applies the old regime. Blank or New Regime applies the new one.
• Tds Applicable unticked means no salary TDS.
• PF, ESI, PT and LWF need a line on the salary structure; an unticked Applicable box makes that scheme 0 for the person.
• Joining and exit dates cut the month at both ends: days outside them are not paid.
• On the create form, type picklist values exactly: Full Time, BankTransfer, Active, Monthly.

Permissions

Access follows the Employee entity's permissions in each security profile:

• See, create, edit and delete need read, create, edit and delete on Employee.
• Employee records are scoped to the employee. Each user sees only their own Employee record (a manager also sees their team's). The Payroll admin and HR admin add-on profiles, and System Admin, see every record. Give your payroll and HR staff one of those add-on profiles.
• The TDS worksheet button is a server action, so it also needs a grant on the profile's Actions tab. The seeded grants are for System Admin and Standard User.
• A user without read access does not see the Employee list.

Because the record decides who is paid, restrict create, edit and delete to payroll and HR staff in your own profiles.

Configuration

• Validation rules: Setup → Design Studio → Entities → Employee → Logic → Validations. The shipped date rules (Date of Confirmation, Probation End date, Date of exit) need no change.
• Automatic names: the Employee Settings document naming setting (series EMP) ships inactive, which is why Name is typed. Activating it makes xMatix generate the Name.
• Form layouts: Setup → Design Studio → Entities → Employee → Layouts. To get drop-down lists on the create form, change the four text boxes (Employment Type, Salary Payment Mode, Employment Status and Pay Type) to selects. Remove Cost Center if you do not use it. Follow Design a form layout.
• Picklist values: Employment Type, Employment Status, Pay Type, Salary Payment Mode, Settlement Status and Tax Regime are edited on each field in Design Studio. Do not rename the stored values Exited, Old and New: payroll and tax compare against them.
• Lookup filters: Partner Account is limited to your own companies, and Branch to the chosen company's branches. Both are entity lookup filters on Employee.
• Where it appears: Payroll app → Run payroll → Inputs → Employees. With the HR licence, the HR app lists the same records.

Departments and designations

Department and Designation are master records, not text values. Departments form a hierarchy (a parent department, a head and a cost centre); a designation has a Level, and a move to a higher level is recorded as a promotion. Both belong to Payroll, so a payroll-only tenant has them too. With the HR licence you maintain them under HR → Settings → Organisation → Departments and Designations. The Resource's Department and Designation are now read-only text, copied from the Employee when it is saved.

Common problems

Saving a Date Of Exit fails with "Date of exit cannot be before the date of joining"

The exit date is earlier than Date Of Joining. Correct whichever date is wrong, then save again. A full and final settlement whose Last Working Day is before the joining date is refused the same way when it posts.

A new joiner is missing from the run

Check five things:

• the Partner Account or Payroll Company equals the run's Partner Account;
• the record has a Resource;
• Date Of Joining is on or before the period's end date;
• Employment Status is not Exited without a Date Of Exit;
• the record exists at all.

If the person is counted as skipped instead, they are included but have no Resource Compensation naming a salary structure.

An employee was paid twice in one run

There are two Employee records for the same Resource and company. Delete the duplicate and recalculate the run.

A leaver is still being paid

Check the Date Of Exit. A leaver is paid up to that date in the period that holds it, which is expected. If they are paid in a later period, the Date Of Exit is empty or later than it should be: correct it and recalculate. If their full and final settlement pays the final month, compute the settlement before you calculate the run: the run then skips them.

Employment Status shows "On Notice" oddly, or not at all, on the record page

The value was typed on the create form in a form other than the stored value, for example On Notice instead of OnNotice. Choose it again from the list on the record page.

No TDS is deducted for one person

Tds Applicable is unticked on their record, or they have no Resource Compensation. Tick the box, then run Project TDS or Calculate again. More causes are in Income tax on salary.

The TDS Work Sheet button shows only "Action Executed"

The work sheet is computed but not displayed in the standard screens. Read the person's Monthly TDS Projection instead.

Department offers no values

No Department records exist yet. Create them (see Departments and designations).

Cost Center offers no values

Cost Center is not linked to a list in the standard setup. Leave it blank, or remove it from the layout.

Common questions

What is the difference between a Resource and an Employee?

The Resource is the person: their identity, bank and tax details, grade, leave and everything other modules key on. The Employee is the payroll layer on top of it: which company pays them, whether they are still on payroll, their tax election and HR dates. Payroll postings, payslips and open items always carry the Resource, which is why a person keeps one identity across payroll, expenses and finance. Every person on payroll needs both records; people who only use expenses or field apps need just the Resource.

Does the Date Of Joining prorate the first month?

Yes. Date Of Joining and Date Of Exit cut the month at both ends. A joiner on the 15th is paid from the 15th, and a leaver is paid to their exit date. The days outside are not paid, and they are not loss of pay. The leaver's final month is paid either by that month's run or by their full and final settlement, never both.

Do the PF and ESI Applicable boxes switch the deductions on?

They switch them off, not on. PF, ESI, PT and LWF are deducted only when the person's salary structure contains a component with that statutory type. Unticking PF applicable, ESI applicable, PT applicable or LWF applicable then makes that scheme's lines 0 for this person, so you can exempt one employee without giving them a separate structure. A ticked or blank box means the scheme applies, with the amount set by the company's rule. See Statutory deductions and challans and ESI rules.

Can one person be on two companies' payroll?

A run includes the person when either Partner Account or Payroll Company is its company. So one record can make them appear in two companies' runs if those fields name different companies. Keep both fields on the same company unless you mean the person to be paid by the Payroll Company only, and remember that the Partner Account's run will include them too.

Where does the payslip's bank account come from?

From the Resource, read when the salary payment batch is generated. Salary Payment Mode on the Employee does not change this.

Related topics

• Employees and salary structures
• Salary structures
• Running payroll
• Full and final settlement
• Income tax on salary
• Resources
• Employee — entity reference