Zoho Payroll: Product Updates for India - May 2025

Zoho Payroll: Product Updates for India - May 2025

This May, we are glad to unveil new capabilities in Zoho Payroll that simplify your payroll activities. Here's the list:

  1. Let Employees Choose Their Tax Deduction Method for One-Time Payments

  2. Calculate variable earnings based on percentage of CTC

  3. Carry forward unclaimed reimbursements and encash them quarterly

1. Let Employees Choose Their Tax Deduction Method for One-Time Payments 

When making one-time payments, such as bonuses, the manner in which tax is deducted makes a significant difference to an employee's take-home pay. With this new feature, you can now provide employees with the ability to decide how they would like the tax deducted from such payments.
Info
This feature is currently in early access. Contact support@zohopayroll.com and we'll enable this feature for you.

Your employees can choose from the options you provide from the employee portal. You can give them three choices:

Option

How it works?

One-Time Deduction

The full tax amount is deducted at once. The remaining amount is credited to the employee.

Monthly Deduction

The full bonus amount is credited upfront. The tax is deducted in future months.

Ad-Hoc Deduction

An amount specified by the employees is deducted during the time of disbursement. The remaining tax is deducted in future months.

Here’s how you can implement this for the employees in your organisation:

  • Go to Pay Runs on the left sidebar.
  • Click Create Pay Run in the top right corner and select One Time Payout.
  • Select the one time component and when you would like to pay the employees.
  • Select the Allow employees to select their tax preference checkbox.
  • Select if you want to allow ad-hoc based tax deductions.
  • Set a deadline for employees to submit their tax preference.
  • Click Save and Continue.
  • Add employees to the one time payment and click Continue to Payroll.
  • In the one-time payroll screen, click Allow tax preference in the top right corner.
NotesNote: For employees who do not have access to the employee portal, you can select their preferred tax deduction method by selecting the employee.

Your employees can now log in to their portal and choose their preferred tax deduction method.

 You can also opt to lock the ability for employees to submit their tax preference before the deadline date, if required. To do this:
  • In the one-time payroll screen, click Lock Tax Preference in the top right corner.
Your employees will no longer be able to submit their preferred tax deduction method. Once the deadline has passed, the ability for employees to submit their tax preference will be locked automatically. However, you can choose to extend the deadline for employees to submit their tax preference. Here's how:
  • In the one-time payroll screen, click Extend Tax Preference in the top right corner.
 If you want to have a backup, you can also export to download the tax preference.



2. Calculate variable earnings based on percentage of CTC

Variable earnings are earnings that are not fixed and vary based on the performance of an employee. In Zoho Payroll, you can now calculate these variable earnings such as bonus based on percentage of CTC (Cost to Company) of an employee.
Info
This feature is currently in early access. Contact  support@zohopayroll.com and we'll enable this feature for you.
For example, you have two employees - employee A and employee B - in your company. For employee A, you want to calculate their bonus based on 5% of their CTC. For employee B, you want to calculate their bonus based on 10% of their CTC. Here's how you implement this in Zoho Payroll:
  • Navigate to Settings > Salary Components.
  • Click Add Component in the top right corner and select Earning.
  • Select Bonus as the earning type.
  • Select the Make this earning a part of employee's salary structure option under Other Configurations.
  • Select Percentage of annual CTC as the calculation type.
  • Add other details about the bonus.
  • Click Save.

Once you've saved this earning, you associate it to an employee by including one-time payments as part of their salary structure.
  • You enter the bonus percentage as 5% of annual CTC for employee A and 10% of annual CTC for employee B.
When the pay run is processed for the variable earning, the bonus of 5% and 10% of annual CTC will be calculated for employees A and B respectively.


3. Carry forward unclaimed reimbursements and encash them quarterly  

You can now choose to carry forward your employees' unclaimed reimbursements and encash them on a quarterly basis.
Info
This feature is currently in early access. Contact  support@zohopayroll.com and we'll enable this feature for you.
For example, let's say you want the telephone reimbursement that, when unclaimed by employees, gets carried forward and encashed at the end of the quarter. Here's how you can implement this in Zoho Payroll:

  • Go to Settings and select Salary Components.
  • Switch to the Reimbursements tab and select Telephone Reimbursement.
  • Enter the other details and select Carry forward and encash quarterly for the How do you want to handle unclaimed reimbursements? field.
  • Click Save.
The unclaimed telephone reimbursements of your employees will be carried forward from the beginning of the year and will be encashed at the end of the quarter.
​

​
​
​That's a wrap for now! We are always eager to hear your suggestions so we can help you do payroll better. Feel free to share them in the comments below.

If you need any assistance, please write to us at support@zohopayroll.com, and we'll help you. Stay tuned for more updates from Zoho Payroll.

With a shared purpose,
The Zoho Payroll Team

    • Sticky Posts

    • Zoho Payroll | Quarterly Product Updates For 2024

      As we navigate through the ever-changing payroll landscape, we bring you the latest updates that span the first quarter of 2024, tailored to meet the diverse needs of employers and employees in India, the UAE, and the US. From useful integrations to refined

    • Introducing Academy 🎉: your go-to hub for all things payroll

      Hello! We're thrilled to launch our newest payroll resource hub - Academy by Zoho Payroll [for India] - the information repository where you can go to learn everything about payroll. Introducing Academy by Zoho Payroll Why did we build Academy? Payroll

    • Recent Topics

    • Zoho invoice doesn't support Arabic language

      I added a clause in the terms & conditions section in Arabic but it doesn't appear when I sent or print it.

    • Recurring Invoice Placeholder Not Updating Billing Period

      Hi, I’m using Zoho Invoice Free and want the billing period to update automatically in recurring invoices. In Item Description I tried: Billing Period: %(m-6)% %(y)% to %(m-1)% %(y)% but even if the invoice date is in 2026, it still shows the period based

    • Related list Mobile Device

      Hello, We use an the Zoho creator application to make reports linked to Accounts. On the computer: it's easy to go the Account and see all the created reports in the related list below On iPad/Phone ZOHO CRM APP: we cannot see the reports on those accounts

    • Can't update the company address in zoho invoice

      Dear Sir/Madam, I want to update the company address in Zoho Invoice but failed. It popped out a sentence "Invalid value passed for Website". Please advice how to solve this problem. Thank you.

    • Is there a plan to allow for the hierarchical organization of Customers / Companies in Zoho Billing?

      We have a few customers who have organizational structures that we haven't quite found a way to deal with in Zoho Billing. In CRM, these sub-companies (or subsidiaries or whatever you want to call them) all have another CRM account as the parent account.

    • 【Zoho CRM】作業リスト機能リリースのお知らせ

      ユーザーの皆さま、こんにちは。コミュニティチームの藤澤です。 今回は「Zoho CRM アップデート情報」の中から、作業リスト機能リリースのお知らせ情報をご紹介します。 目次 作業リスト機能　概要 機能①　自分の未完了の活動 機能②　処理待ち 機能③　自分の作業リスト 作業リスト機能　概要 営業チームでは、CRM内に業務やデータが分散しているため、管理が煩雑になりがちです。この断片化は、機会の見逃しや生産性の低下につながります。 作業リスト機能は、タブを横断する業務項目をひとつのカスタマイズ可能なダッシュボードに集約し、業務を効率的に管理できるようにします。

    • SalesIQとPageSenseの利用について

      初めての投稿で場違いだったらすいません。 弊社ではSalesIQを運用しているのですが、追加でPageSenseの導入もしたいと現場からの声があります。 両サービスともクッキー同意バナーが必要なサービスなのですが 弊社では同意無しに情報はとりませんという方針なので 2つ入れると2つバナーを出す必要がでてきます・・・ 両サービスを運用されてる方があれば運用状況とか教えてほしいです。 PageSenseについては詳細まで機能を理解してないなかでの質問です。

    • Parent-Child Tickets using API or Deluge

      Hi Everyone, We are looking at the parent-child ticketing features in Zoho Desk. We want to be able to create a parent ticket at customer level and nest child tickets underneath. The issue we are facing is to be able to automate this. I'm checking the

    • Closing connected ticket after closing WA conversation

      Hi, At the moment, once someone sends a message to our WA number, a corresponding ticket is automatically created. After the question is answered, our support department closes the chat/conversation. However, after that, the connected ticket is still

    • Note sync turn off

      Hi, Is it possible to turn off notes sync between task notes and the parent module? (Account/Deal)

    • Basic Plan Active but Survey Creation Still Limited to 3 Surveys

      I have an active Basic (Monthly) subscription (valid period: Dec 24, 2025 – Jan 24, 2026), but the system still limits survey creation to only 3 surveys, which matches Free plan behavior. The subscription appears active in Portal Information, however

    • 2025 in Review: Powering Field Services Forward—One Feature at a Time

      As 2025 draws to a close, it’s time to pause and reflect on a year of meaningful progress at Zoho FSM. This year was all about listening closely to our customers and partners, building with purpose, and continuously improving the way field service teams

    • API Support for Creating Invoices with Batch-Tracked Items

      Hi Zoho Community, I am working on an integration where we create invoices in ERPNext and push them to Zoho Books. I need to send batch-tracked items (batch numbers) when creating invoices. I could not find any reference in the Zoho Books API documentation.

    • New to automation - please help

      Hi there! We are new to automations in Zoho. We built out one automation campaign and it seems to be firing off for some people but others not. Please advise what's the best practice or if anything we should tweak. Thank you so much!

    • Unable to Create Zoho Booking via the Book Appointment API

      Its giving the below error {     "response": {         "errormessage": "Error setting value for the variable:customer_details\n null",         "status": "Error"     } } Request: POST Url: https://www.zohoapis.in/bookings/v1/json/appointment attached Zoho-oauthtoken

    • Task Details on task template

      When creating a task template in settings that task details seem to be missing. Is it not possible to set the details of a task, such as the priority, type, reminder settings, and custom field values?

    • Building Toppings #3 -Testing and publishing Bigin toppings

      Hey Biginners! In previous forum posts, we discussed what a Bigin topping is and explored the Bigin Developer Console's features. In this post, we're going to create a topping from scratch and discuss how to test and publish it. Our topping will automate

    • markdown files?

      How can I import a markdown file into a note?

    • Mail to Zoho Notebook

      In the Instuctiosn I faound as email add@notebook.app In my account I see add@eu.notebook.app What is correct please

    • Auto-Invite Users to Portals in Zoho CRM based on Conditions

      Hello Everyone, You can now automate portal invitations in Zoho CRM with the new Auto-Invite users feature in Portal management. No more manually enabling portal access one by one. With this enhancement, you can automatically send invites for users to

    • Growth You can Count On: Zoho Billing's 2025 Journey

      As we wrap up 2025, we’re reflecting on a year rooted in steady progress and meaningful growth for Zoho Billing. Every enhancement we have introduced was built to support scalable and reliable billing growth for your business. From launching the Enterprise

    • Need help with creating workflow with Bigin and Clickup

      Can you please help me with this? I am trying to create a workflow in Zoho Flow wherein a bigin Pipeline deal moves to Decision Closing, it will create a task and subtasks in Clickup, under the condition/filter that the Deal name contains the word Social

    • [Webinar] Automate generation of wills, trusts, POAs, and other estate planning documents with Zoho Writer

      Managing the lifecycle of the estate planning documents such as wills, trusts, and POAs, from client intake to final storage, can be complex and time-consuming. Join our live webinar to learn how Zoho Writer transforms this process by automating document

    • Create / Update Rule in TeamInbox when record is updated in ZohoCRM using flow?

      I'm currently evaluating options and trying to work out if the possible scenario is possible; If a record in ZohoCRM is updated, take 2 of the fields from that - lets call them 'OrderRef' and 'OrderTo'. Using flow, if a record is added or updated, add

    • Plans to allow more columns of monitoring, and monitoring not only your own channels?

      Are their any plans to allow more columns of monitoring, and monitoring not only your own channels? Here's why - I'm sure I'm not alone in that we sell other brands products, so not only am I interested in my own brand social channels, but also the social

    • Unwrapping the best practices for the Zoho Desk mobile app: Part 1

      In focus: Empowering the field and frontline customer support representatives Imagine having to carry your computer everywhere to respond to customers, handle escalations, and update your process. This series presents you with efficient tips to handle

    • dealing with post dated cheques

      Hi, can you help me please the best way to deal with this We sell an item of three months duration that is paid for with post dated cheques in monthly stages example - item is sold £3000 Cheque 1 is for £1000 due at time of sale (say Sept) cheque 2 is dated 25th of next month (Oct) cheque 3 is dated 25th of next month +1 (Nov) Now, with invoice number one it's simple - i send a standard invoice as usual But with the other two here's what i want zoho to do next month i want it to send an invoice on

    • Is there a way to sell in a practical method multiple subscriptions of the same product? i.e. domain names

      In evaluating Zoho Billing, a hurdle to adopting it is that Zoho Billing does not seem designed to support businesses that sell multiple subscriptions of the same product. In our case, we need to sell and manage several domain names per client. Am I right

    • Paid Support Plans with Automated Billing

      We (like many others, I'm sure) are designing or have paid support plans. Our design involves a given number of support hours in each plan. Here are my questions: 1) Are there any plans to add time-based plans in the Zoho Desk Support Plans feature? The

    • Bug Report: "Name A-Z" sorting fails when Note titles start with an Emoji

      Hello, I recently migrated from Evernote (~2600 notes across 23 notebooks). I use emojis at the start of my note titles for visual organization. The Issue: When I set the view to Sort by: Name (A to Z), the sorting logic breaks for any note starting with

    • Copy & Paste not working

      I could create and save 10 new documents but when I go to copy and paste content (just text) into them, only 1 of 10 would save the content. It would appear to save the content but when I go back into the documents, they are empty.

    • Currency for Petty Cash

      Currencies for Petty Cash should be available

    • editing/applying online payments

      We have customers who pay part or all of an invoice and then cancel their service and want the payment as a credit to future work. It would be ideal if we could make it an excess payment and then void the invoice. I can't make it an excess payment because

    • Contacts per department

      Hello, Is it possible to limit Contacts to a Department? Thanks

    • This site can’t be reached mail.zoho.com took too long to respond

      In my office at any system, we couldnt able to login zoho email. it shows " This site can’t be reached mail.zoho.com took too long to respond". please fix it soon.

    • Can send email from zoho mail, but can't receive any.

      Hi, My domain is sattvameditationresort.com. I've updated MX records with those of Zoho. But i can't send any mails to this email id from gmail. I have checked the MX status with MXTOOLS, its showing the correct entry either. The error is as shown below:

    • My domain did not activate

      Hi, my domain (apsaindustrial.com.ar) did not activate, and the phone verification message never arrived. Please would you solve this problem? Thanks.

    • Host not found?

      Howdy! So i'm trying to add my custom domain for with the mail server. I have 100% control of my DNS and have tried every single option (TXT, CNAME, and even HTML) multiple times, ensuring i did it properly, to no luck. I get the same error message every

    • Emails are going to notification folder and not in inbox

      emails are going to notification folder and not into inbox

    • Error AS101 when adding new email alias

      Hi, I am trying to add apple@(mydomain).com The error AS101 is shown while I try to add the alias.

    • Next Page