Handling Earnings, Deductions,...

In any payroll system, accurately managing earnings, deductions, and employee benefits is crucial for compliance, employee satisfaction, and financial transparency. ZuriHR is designed to make this process smooth and automated for businesses. In this article, we’ll walk you through how ZuriHR handles these components, ensuring accurate salary computations and statutory compliance.

1. Adding and Managing Bonuses

Earning can be added directly in ZuriHR during payroll processing.

From the Employee Employee data → Earnings & Deductions module:

• Select the employee or use the Bulk tool

• Choose the earning type (e.g., commission, bonus ) and applicable period

• Enter the amount, rate, percentage of basic pay

ZuriHR automatically factors in the earning amount into gross pay and calculates accordingly. Under Setting → Payroll you can also label earning as taxable or non-taxable, depending on internal policies and regulatory requirements.

2. Applying Deductions

ZuriHR allows you to define and apply different types of deductions, both statutory and voluntary.

Statutory deductions (automated in ZuriHR):

• PAYE – Based on current KRA tax bands

• NSSF – Tiered contributions

• SHIF – Based on salary brackets

Voluntary/custom deductions:

• SACCO contributions

• Staff loan repayments

• Welfare or social fund contributions

• Penalties or fines (if approved by HR policy)

Each deduction entry is reflected in the payroll preview, with full breakdowns visible in the payslip and payroll summary.

3. Managing Employee Benefits

ZuriHR enables employers to offer a wide variety of benefits and track their monetary value across payroll cycles.

Examples include:

• House allowance

• Medical cover (cash or reimbursed)

• Transport allowance

• Phone/internet allowance

• Non-cash benefits (e.g., company car)

ZuriHR calculates the taxable portion of each benefit based on KRA guidelines. All this is handled automatically.

You can configure benefits under Settings →Payroll  Benefits , and apply them .

4. Audit Trails and Compliance Reporting

Every bonus, deduction, or benefit change in ZuriHR is logged in the system’s audit trail. This ensures transparency and traceability during internal audits or external reviews.

Additionally, you can generate:

• Benefit reports per  department

• Deduction schedules for Advance Pay

• Statutory summaries for KRA, NHIF, and NSSF

These reports simplify monthly and annual compliance, especially for HR and finance teams managing large workforces.

5. Payslip Transparency

Employees can view a detailed breakdown of:

• Earning earned

• Total deductions

• Benefits received (taxed and untaxed)

This transparency builds trust and reduces payroll-related queries. Employees access their payslips via the self-service portal.

Conclusion

Handling earning, deductions, and benefits doesn’t have to be complicated. With ZuriHR,  businesses gain a powerful tool for automating these payroll components while ensuring compliance with all legal requirements. Whether you're managing a startup or an established company, ZuriHR helps you pay your team accurately, fairly, and on time.