People (HR) · Module
Payroll
India-first payroll from locked inputs, approved by a human, traced to the rupee
Payroll runs India statutory payroll from typed inputs, with variance review, a per-employee calculation trace and immutable finalised runs. Finalising and paying are R4 Actions that always need a human approver with step-up authentication.
What it does
Payroll is planned as an add-on that requires Core HR. Pay groups and calendars are set per legal entity with cut-off, pay date and attendance period offset. Salary components cover earnings, deductions, employer contributions, reimbursements and arrears, written in a formula language with taxability flags and wage-definition classification. Salary structures break CTC into components by grade and entity and show employer cost. A wage-definition validator applies the Labour Codes rule on exclusions (verify computation guidance with a CA or counsel).
Statutory configuration covers PF, ESI, state PT, state LWF, TDS, gratuity provision and bonus as versioned rule data, each linked to a Fact Register entry. Every rate, ceiling, slab and due date is a verify item, and a run cannot finalise against unverified or expired facts.
The run
Inputs arrive typed and traceable: loss-of-pay days, overtime, one-time earnings and deductions, reimbursements, loan EMIs, arrears, CRM commissions and Projects timesheet hours. The run moves from draft to calculating, calculated, in review, approved, finalised and disbursed. Month-over-month variance review by employee and component, rule checks and AI Payroll Checker flags help reviewers catch errors. Each employee gets a calculation trace with inputs, rule versions, engine version and an input snapshot hash.
The preparer of a run cannot approve it. Finalising and sending bank files or partner payouts are R4 Actions with step-up authentication, never available over MCP, WhatsApp, email links, Teams or Slack. Finalised runs are immutable; corrections are off-cycle, adjustment or reversal runs.
Outputs
Payslips are published as branded PDFs and in-app views, with multilingual labels at GA. Bank-specific disbursement files are generated for approved runs. A journal posts to Accounts by cost centre and component. Statutory outputs include PF ECR, ESI contribution data, PT and LWF reports, TDS computation and quarterly return data, and Form 16 or Form 130 depending on tax year (all verify).
Going live safely
Mid-year go-live uses a year-to-date import. A parallel-run comparison tool diffs each employee and component against the incumbent's output with an explanation workflow. Payroll GA is planned only after parallel runs with design partners, signed off by a payroll domain expert and a chartered accountant as two distinct approvers. Payroll v1 is planned for Year 2 PI-1 and GA for PI-2. This is not tax or legal advice; verify with your CA.
Features
What Payroll includes
Pay groups and calendars
Per legal entity with monthly cycle, cut-off, pay date and attendance period offset.
Salary components and structures
Earnings, deductions, employer contributions, reimbursements and arrears with formulas and taxability flags; CTC-to-component templates by grade and entity.
Wage-definition validator
Applies the Labour Codes wage definition and exclusion cap to wage-linked computations (verify with CA or counsel).
Statutory rules as data
PF, ESI, state PT and LWF, TDS, gratuity and bonus as versioned rules linked to Fact Register ids (every rate and due date verify).
Employee statutory profile and tax declarations
PF and ESI applicability, PT and LWF state, tax regime choice and previous employer income; declaration windows and proof review.
Typed payroll inputs
Loss of pay, overtime, one-time items, reimbursements, loan EMIs, arrears, commissions and timesheet hours with source and consumed state.
Run lifecycle with segregation of duties
Draft to disbursed with cancel and supersede; the preparer cannot approve or finalise.
Variance and anomaly review
Month-over-month variance by employee and component, rule-based checks and AI Payroll Checker flags.
Calculation trace
Per-employee step trace with inputs, rule versions, engine version and input snapshot hash.
Payslips and payslip explainer
Branded PDF and in-app payslips; employees ask why net pay changed and get an answer from the trace.
Disbursement and GL export
Bank-specific salary files or partner payouts after R4 approval; journal to Accounts by cost centre and component.
Statutory outputs and challans
PF ECR, ESI, PT and LWF reports, TDS data, Form 16 or Form 130, due-date calendar and challan tracking (verify).
Loans, advances and full and final settlement
Loans with EMI schedules, salary advances via WhatsApp, and settlement covering leave encashment, notice recovery, gratuity and loan recovery.
Parallel runs and YTD import
Per-employee, per-component diff against the incumbent with an explanation workflow, and a YTD import for mid-year go-live.
Workflow
Monthly payroll run
- 1
Attendance locks and inputs arrive from Attendance, Expenses, CRM and Work.
- 2
The run calculates and writes a trace per employee.
- 3
Reviewers work through variance and checker flags.
- 4
A different approver approves and finalises with step-up (R4).
- 5
Payslips publish, bank files or payouts are approved and sent (R4), and the journal posts to Accounts.
- 6
Statutory outputs and challan data are produced.
Workflow
Parallel run before go-live
- 1
Year-to-date figures are imported from the incumbent.
- 2
One3 and the incumbent run the same period.
- 3
The comparison tool diffs every employee and component.
- 4
Differences are explained and resolved.
- 5
A payroll expert and a chartered accountant sign off as two distinct approvers.
AI
AI skills and Digital Employees
Payroll checker
Raises variance and statutory cross-check flags before approval and explains them from the trace. It never calculates or finalises pay.
Payslip explainer
Answers employee questions about net pay changes with citations to the calculation trace.
Tax projection
Shows projected annual tax under both regimes as an explanation for the employee's decision, not tax advice.
TDS checks
Checks TDS computations and tracks certificates; filing stays a human R4 decision.
Digital Employees that use this module
They act through the same governed Actions as people; risky steps wait for approval.
Frequently asked questions
Can an AI agent run or approve payroll?
No. Language models never calculate pay or tax, and agents cannot approve, finalise or disburse. These are R4 Actions that need a human approver with step-up authentication.
How are mistakes corrected after a run is finalised?
Finalised runs are never edited. Corrections are new off-cycle, adjustment or reversal runs, each with its own calculation trace.
Which statutory items are covered?
PF, ESI, state PT and LWF, TDS, gratuity and bonus are planned as versioned rule data. Every rate, ceiling and due date must be verified with experts, and this is not legal or tax advice.
Can we switch payroll mid-year?
Yes, the plan supports a year-to-date import and parallel runs against your current provider before you rely on One3.
When is Payroll planned?
Payroll engine v1 is planned for Year 2 Program Increment 1 with parallel runs, and GA for Program Increment 2 (W3).
See Payroll in your workflow
Tell us about your team and the outcomes you want. We will walk you through the apps, the Digital Employees and the plan for your industry.