Keka Payroll Self-Onboarding Guide

Introduction

Setting up payroll is a crucial step after completing your company's initial setup and employee data configuration in Keka. This process ensures accurate salary processing, proper deductions, and full compliance with statutory regulations in India.

Keka simplifies payroll configuration into four clear steps:

1. Define your pay schedule

2. Configure contributions and deductions

3. Set up the salary structure

4. Review declaration and proof submission dates

This guide walks you through each of these steps, ensuring a smooth and compliant payroll setup.

Step-by-Step Payroll Configuration

Set Up the Pay Schedule

1. Go to the Payroll Setup section from the Keka Setup dashboard.

2. Click Setup under Pay Schedule. A sidebar will open.

   

3. Choose your payroll start date.

   • For example, to start from October 2024, select that date.

   • If you plan to upload past payroll data (e.g., for 2023), select a start date in 2023.

4. Set the pay schedule end date.

5. Click Update to save. The step will now show as Complete.

 Configure Contributions and Deductions

1. On the setup screen, click Setup Contributions and Deductions.

   

2. Enable applicable statutory contributions by toggling them on:

   • Provident Fund (PF)

   • Employee State Insurance (ESI)

   • Labour Welfare Fund (LWF)

   • Professional Tax (PT)

   • Hover over the info icon for calculation details.

     

3. For each enabled item, fill in the Filing Details:

   • Registration Number (Est ID)

   • Registration Date

   • Signatory (optional)

4. Click Save & Close, then Save again to confirm.

Define the Salary Structure

 Configure Salary Ranges

1. Click Setup under Salary Structure.

   

2. Use the default salary ranges (e.g., Class A: 0–₹6L) or:

   • Add new ranges

   • Edit existing ranges

     Note: You can’t modify the minimum value of a range. Deleting a range merges it with the next, reassigning affected employees.

   

Add and Assign Salary Components

1. Click Add Salary Component.

2. Choose the salary range(s) to apply it to.

   • You can assign the same component to multiple ranges.

     

3. Select from predefined components (e.g., Medical Allowance, Conveyance).

   • These are tax-optimized and can't be edited.

   • If you need flexibility (e.g., different taxability), create a custom component.

     

4. For custom components, define:

   • Name (e.g., "Special Allowance")

   • Type: Earning or Deduction

   • Max limit per annum

   • Taxability

   

5. Choose how to calculate the value:

   • Fixed Amount (e.g., ₹15,000)

     

   • Percentage of another component

     

   • Custom Formula

   • 

6. Click Save to finalize.

 Preview the Salary Structure

1. Enter a sample annual salary (e.g., ₹5,00,000).

2. Click View Breakup.

   

3. Review the breakdown of earnings and deductions.

4. Adjust components if needed based on this preview.

Set Declaration and Proof Submission Dates

1. Set a monthly declaration window for employees:

   • Example: Start Date: 1st, End Date: 22nd

   • Declarations after the end date are not accepted unless manually reopened.

     

2. Set a financial year cutoff date (e.g., 22nd January).

   • After this, employees cannot submit new declarations.

     

3. Special rule for new joiners:

   • Can declare within 30 days of joining or by 22nd Feb, whichever is earlier.

4. Set proof submission deadline:

   • Typically aligned with the FY cutoff (e.g., 22nd Jan).

   • Tip: Declarations without proofs submitted by this date will not count toward tax exemptions.

     

After completing these four steps — pay schedule, contributions and deductions, salary structure, and salary components — your payroll setup in Keka will be complete. Ensure to review all settings for accuracy to avoid any discrepancies during payroll processing.

You can now run payroll smoothly, and Keka will handle the complex calculations, statutory filings, and salary processes for your organization.