How to withhold the salary processing/payout of an employee

Modified on Wed, 5 Apr, 2023 at 3:16 PM

It is illegal for employers to hold back an employee's salary due to poor performance. Employees are entitled to receive their salary for the work they have done as long as they report to work. If an employee fails to show up for work without prior notice, no-call no-show guidelines can be followed. However, if an employee has given written consent for holding their salary, the employer can do so. Additionally, an employer may hold the salary of an employee who fails to serve the notice period as per the employment agreement. The company can also hold the salary of new employees whose verification is still incomplete.

To hold back the salary processing/payout of an employee, follow the steps below:


Log in to your Keka portal and click on Payroll (1) and then go to Run Payroll (2). 

If you have multiple pay groups configured for your organization, first select the relevant Pay Group (3).

Now select the month for which you want to withhold the salary. 


You can only withhold salary for an month whose payroll has not been finalized yet. This month will marked as 'Pending'.


 

Find the Run Payroll section and click on Salaries on Hold & Arrears.


This will open the Salary on Hold & Arrears window


The first section is Salary Processing On Hold. This means that the employees added in this section will have statutory contributions/deductions on hold along with their net pay.


To hold the salary processing of an employee, click + Add Employee and search for the employee. Now, under the Pay Action column make that the Hold salary processing this month option is chosenNow, click Save & Continue (5).

Click on Save & Continue to proceed to the Salary Payout On Hold section.

Employees added in this section will have only their net pay on hold but their statutory contributions will still be made.


In this section also you can use +Add Employee to add an employee to this list and in the Pay Action Column, make sure that the Hold Salary Payout This Month is selected.



In both these sections, you can also use the Import Processing/Payouts on Hold option to import multiple employees in these sections in bulk using excel. To know more about doing this, you can refer to this article.


Now click on Save & Continue and then if you have nothing else to update, you can close the window


If you later selecte the option to release the salary as regular salary which was kept on hold, then there will be two entries in the Keka pay register and also a separate payslip will also get generated. But if you release the salary as an arrear then there will no payslip will be generated and the name will not be reflected twice in the pay register.


It is hoped that you found this document helpful. If you have further questions, why not check out the other articles? Also, you can talk to our product experts if you want to.





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