July 2025 Payroll Updates: Smarter, Simpler, More Compliant

July 2025 Payroll Updates: Smarter, Simpler, More Compliant

Over the past month, we've focused on making Zoho Payroll more flexible, compliant, and easier to use—whether you're processing complex payouts, ensuring accurate calculations, or meeting local tax regulations.

Here's what's new:
  • One-Time Payments and Off Cycle Payrolls: Now Support Formula-Based Earnings (India)
  • Earnings Based on % of CTC Now Include One-Time Earnings (India)
  • Authorize Zoho Payroll to File State Taxes on Your Behalf (US)
  • More SIF/Wage File Formats (UAE & KSA)
Plus, stay tuned for a sneak peek at an exciting improvement coming your way next week.

One-Time Payments and Off Cycle Payrolls: Now Support Formula-Based Earnings (India, UAE, KSA)

When processing a one-time payout or an off cycle payroll for employees, you must select a specific earning component, which determines how the payment is calculated.

You can now use formula-based earning components such as Custom Allowance or Overtime Allowance as the earning components in both One-Time Payments and Off Cycle Payrolls, provided the earning component's Pay Type is set to Variable Earning and the Calculation Type is set to Custom Formula.

Since the payout amount is determined by a formula, you're required to provide the necessary input variables used in that formula. These inputs may include days, hours, or minutes, depending on how the formula is defined.

After creating the one-time payout or off cycle payroll entry, you must manually add each employee and enter the appropriate input values, such as the number of days, hours, or minutes worked.



For example:
  • If your formula pays 200 per overtime hour, you must input the number of overtime hours worked for each employee.
  • If your formula is based on days worked for a project, you must enter the relevant number of days for each employee.

Earnings Based on % of CTC Now Include One-Time Earnings (India)

Previously, when fixed earnings such as Basic Pay, HRA, Dearness Allowance, Conveyance Allowance, etc., were set to be calculated as a percentage of CTC, the system used the Fixed CTC as the basis. This Fixed CTC was calculated as Annual CTC – One-Time Earnings.

As a result, only the recurring components of the CTC were considered.

Now, fixed earnings calculated as a percentage of CTC are based on the entire Annual CTC, which includes one-time earnings (such as bonuses or one time payments). This means the earnings derived from percentage calculations will now reflect a higher base value. This change ensures a more consistent and transparent calculation of earnings based on the full value of an employee's Annual CTC, including both recurring and one-time earnings.

Notes
Note: This feature is currently in early access. If you’d like to enable it for your organization, please contact us at support@zohopayroll.com.

Authorize Zoho Payroll to File State Taxes on Your Behalf (US)

Previously, Zoho Payroll could file and pay state payroll taxes on your behalf except for certain departments in the following states:
  • California
  • Colorado 
  • Hawaii
  • Iowa
  • Indiana
  • Massachusetts
  • Minnesota
  • New Mexico
  • North Dakota
  • Oklahoma
  • Pennsylvania
  • Texas
Now, you can authorize Zoho Payroll to handle payroll tax filing and payments for the remaining departments in these states as well. This can be done by granting us Third Party Adminstrator (TPA) Access through the official website or relevant portal of the states listed above. 

To learn how to authorize Zoho Payroll as a third-party access for your state, refer to our TPA setup guide. Once TPA is granted, Zoho Payroll will be able to file and pay state payroll taxes on behalf of your organization.

Other Enhancements

Sharjah Islamic Bank SIF File Format (UAE): If you choose to pay your employees via bank transfer, you can download the SIF file in the Sharjah Islamic Bank supported format from Zoho Payroll. Then, submit it manually to the Wages Protection System (WPS) or through your bank’s website to process the payment.

More Wage File Formats (KSA): If you choose to pay your employees via bank transfer in KSA, you can download the wage file in a format supported by Albilad Bank, AlJazira Bank, or Saudi National Bank from Zoho Payroll. You can then manually submit the file to the Wages Protection System (WPS) or through your bank’s website to process the payment.

Upcoming Change

Later next week, we’re rolling out an improved Settings section in Zoho Payroll. It will feature a cleaner layout, smarter grouping of options, and a built-in search to ensure consistency with other Zoho Finance products.




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

    • Importing a new list into campaigns

      I'm in the middle of switching my email platform to campaigns. I have a list that I want to import, and it overlaps with my existing Zoho CRM list. The fields in my Zoho CTM are more robust. Will this new list that I upload into my campaigns overwrite

    • Client Script Payload Size Bug

      var createParams = { "data": [{ "Name": "PS for PR 4050082000024714556", "Price_Request": { "id": "4050082000024714556" }, "Account": { "id": "4050082000021345001" }, "Deal": { "id": "4050082000023972001" }, "Owner": { "id": "4050082000007223004" }, "Approval_Status":

    • Webform & spam

      Hi, We set up 2 webform on our website, fowarding the content to Zoho CRM. Since it has been opened up, we are getting lot of spam message (for now about 20 a day). To lower the  amount of false new leads we added the captcha field and new enquieries are send to the Approval Leads list. However we still get some spam. Is there any "anti spam" mechanism built in Zoho CRM, or how is the best way to avoid these kind of spam ? Thanks

    • when I email a invoice how can i see it was sent and also were i can go to see all emails sent

      when I email a invoice how can i see it was sent and also were i can go to see all emails sent?

    • Kaizen #208 - Answering your Questions | Functions, AI and Extensions

      Hello Developers! Welcome back to a fresh week of Kaizen! We are grateful for your active participation in sharing feedback and queries for our 200th milestone. This week, we will answer the queries related to Functions and Extensions in Zoho CRM. 1.

    • Export Invoices to XML file

      Namaste! ZOHO suite of Apps is awesome and we as Partner, would like to use and implement the app´s from the Financial suite like ZOHO Invoice, but, in Portugal, we can only use certified Invoice Software and for this reason, we need to develop/customize on top of ZOHO Invoice to create an XML file with specific information and after this, go to the government and certified the software. As soon as we have for example, ZOHO CRM integrated with ZOHO Invoice up and running, our business opportunities

    • Showing description in timesheet and timelogs.

      I am wondering if it’s possible in version 5 of Zoho People to have the description show by default or with a manipulation on the user’s part. Let me show you what I mean. As you can see this is the view for the users. Now if they want to see the full

    • How can I see content of system generated mails from zBooks?

      System generated mails for offers or invices appear in the mail tab of the designated customer. How can I view the content? It also doesn't appear in zMail sent folder.

    • New in Cadences: WhatsApp follow-ups, upgraded limits, and options for add-ons

      Hello everyone, We're rolling out two key updates to help you engage better and scale smarter with Cadences in Zoho CRM. Reach customers on WhatsApp, directly from Cadences Previously, Cadences have enabled you to automate follow-ups through emails, calls,

    • CRM Blueprint Notification by Cliq

      Dear Zoho team, In Workflow, there is nofication by cliq, but in blueprint, there is no option as cliq notification. I think it is very convenient to get notified by Cliq , as there are multi modules in apps, but we will always check Cliqs

    • Zoho People Attendance Regularization – Wrong Total Hours Displayed

      While using Zoho People, I observed that the attendance regularization is showing wrong total hours when applied to past dates. For example, if a check-in is added at 10:00 AM and check-out at 6:00 PM for a previous date, the system sometimes calculates

    • Sync Contacts in iOS

      What does the "Sync Contacts" feature in the iOS Zoho Mail app do?

    • Live webinar: Craft the ideal sales pitch deck with Show

      Every great sale starts with a great story. And your pitch deck? That’s where the story takes shape. But too often, these presentations end up looking generic, overloaded with text, or lacking structure. The good news is, it's easier to fix than you think!

    • Project Statuses

      Hi All, We have projects that sometimes may not make it through to completion. As such, they were being marked as "Cancelled". I noticed that these projects still show as "Active" though which seems counter intuitive. In fact, the only way I can get them

    • 👋 Welcome to the Zoho MCP Community

      Hello all, glad to have you here! This is your space for everything AI agents, MCP tools, and intelligent business apps. This community is for you — developers, partners, creators, and businesses exploring how agents can transform work. Whether you’re

    • Suitability of Zoho One (Single User License) for Multi-State GST Compliance & Cost Analysis

      Hello Zoho Team, I am an e-commerce business owner selling on platforms like Amazon, Flipkart, and Meesho, and I'm currently using their fulfillment warehouses. I have two GSTIN registrations and am planning to register for an additional 2-3 to expand

    • DNS Manager

      Where Can I find my DNS manager so I can link this to click funnels or AWEBER

    • Forwarder

      Hi, I tried to add a forwarder from which emails are sent to my main zoho account email . However, it asks me for a code that should be received at the forwarder email, which is still not activated to send to my zoho emial account. So how can I get the

    • Forwarder

      Hi, I tried to add a forwarder from which emails are sent to my main zoho account email . However, it asks me for a code that should be received at the forwarder email, which is still not activated to send to my zoho emial account. So how can I get the

    • How do I sync multiple Google calendars?

      I'm brand new to Zoho and I figured out how to sync my business Google calendar but I would also like to sync my personal Google calendar. How can I do this so that, at the very least, when I have personal engagements like doctor's appointments, I can

    • Need to extract date from datetime field

      I have a datetime field and need only the date part from it. I am unable to find a built-in function that would be <DateTime>.Date(). I don't think I want to go the string conversion route of converting the datetime to string and then parsing out values and create a date out of it. Any one out there has a better solution to this? Thanks in adavnce. Regards Moiz Tankiwala Smart Training & IT Solutions

    • How to Hide Article Links in SalesIQ Answer Bot Responses

      I have published an article in SalesIQ, and the Answer Bot is fetching the data and responding correctly. However, it is also displaying the article link, which I don’t want. How can I remove the link so that only the message is shown?

    • India Tech Support

      Is there no phone tech support number for India? And no chat facility either?

    • additional accounts

      If I brought 5 emails to my account. Can I later buy additional emails.

    • Issue in Zoho People Regularization – Incorrect Hour Calculation

      I have noticed that when applying attendance regularization in Zoho People for previous dates, the total working hours are not calculated correctly. For example, even if the check-in is 10:00 AM and check-out is 6:00 PM, the system shows an incorrect

    • Why I am unable to configure Zoho Voice with my Zoho CRM account?

      I have installed Zoho Voice in my Zoho CRM, but as per the message there is some config needed in Zoho Voice interface. But when I click on the link given in the above message, I get an access denied page.

    • Issue with Hour Calculation in Zoho People Attendance Module

      I have noticed an issue in the attendance regularization feature of Zoho People. When trying to regularize past dates, the total working hours are not calculated correctly. For example, if I enter a check-in and check-out time for a previous day, the

    • Cliq Meeting Calls No Audio and Screen Share

      When in a Cliq channel meeting, the audio does not work at all on pc. When i use my phone as audio source, screen share on pc does not work. I have updated audio drivers but the strangest thing is that during a 1 on 1 call, it works well. Therefore the

    • Bug in Total Hour Calculation in Regularization for past dates

      There is a bug in Zoho People Regularization For example today is the date is 10 if I choose a previous Date like 9 and add the Check in and Check out time The total hours aren't calculated properly, in the example the check in time is 10:40 AM check

    • Work anniversary and birthdays on connect

      Hello, I like the idea of having employee's work anniversary and birthdays on the dashbaord. Do you have to have the employee complete this information themselves in connect settings, or does it pull from their directory settings? (ie. we use Zoho one

    • Alias Email Id already exists

      Hi I'm trying to create an alias : contact @ yoavarielevy.co.il but i get the message  Alias Email Id already exists I had an account with the same name but I deleted it. Can you help? Thanx Yoav

    • BANK FEED - MAYBANK , provider from YODLEE IS NOT WORKING

      As per topic, the provider YODLEE is not working for the BANK FEED. It have been reported since 2023 Q3, and second report on 2023 Q4. now almost end of 2024 Q1, and coming to 2024 Q2. Malaysia Bank Maybank is NOT working. can anyone check on this issue?

    • Feature Request: Ability to Set a Custom List View as Default for All Users

      Dear Zoho CRM Support Team, We would like to request a new feature in Zoho CRM regarding List Views. Currently, each user has to manually select or favorite a custom list view in order to make it their default. However, as administrators, we would like

    • Adding Multiple Products (Package) to a Quote

      I've searched the forums and found several people asking this question, but never found an answer. Is ti possible to add multiple products to a quote at once, like a package deal? This seems like a very basic function of a CRM that does quotes but I can't

    • Zoho Commerce in multiple languages

      When will you be able to offer Zoho Commerce in more languages? We sell in multiple markets and want to be able to offer a local version of our webshop. What does the roadmap look like?

    • Compensation | Salary Packages - Hourly Wage Needed

      The US Bureau of Labor Statistics says 55.7% of all workers in the US are paid by the hour. I don't know how that compares to the rest of the world, but I would think that this alone would justify the need for having an hourly-based salary package option.

    • Introducing Assemblies and Kits in Zoho Inventory

      Hello customers, We’re excited to share a major revamp to Zoho Inventory that brings both clarity and flexibility to your inventory management experience! Presenting Assemblies and Kits We’re thrilled to introduce Assemblies and Kits, which replaces the

    • How to create auto populate field based on custom module in Zoho CRM?

      Hello, i'm still new to Zoho CRM and work as administrator in my company. Currently, I'm configuring layout for Quotes Module. So, the idea is, I've created a read-only field in Quotes called "Spec". I want this field automatically filled with Specification

    • webinar registration confirmation are landing in SPMA folders

      I am trialing zoho webinar and do not have access to custom domains. When I test user registrations, they are working but the resulting confirmation email is landing in a spam folder. How can I avoid this?

    • Making digital signatures accessible to all: Introducing accessibility controls in Zoho Sign

      Hi there! At Zoho Sign, we are committed to building an inclusive digital experience for all our users. As part of our ongoing efforts to align with Web Content Accessibility Guidelines (WCAG), we’re updating the application with support that will go

    • Next Page